*Makes sense, if they can make it happen. via POLITICO EUROPE.
BIG WEEK FOR EU-MEXICO TRADE DEAL: This is Mexico’s chance to stick it to U.S. President Donald Trump before year-end, and the EU’s chance to clinch another major trade deal in 2017. Mexican Economy Minister Ildefonso Guajardo is in Brussels today for talks on upgrading an existing EU-Mexico trade pact. He aims to bring home an agreement in principle. “There is a possibility but not a guarantee” of a deal being struck before the end of the year, he told Reuters. The European Commission said that it was “committed” to striking a political deal by New Year’s Eve. The key moment to push the accord over the line will be Tuesday, when Guajardo meets European Commissioner for Trade Cecilia Malmström.
Why Mexico wants it: Trump’s border wall and his push to rework the North American Free Trade Agreement (NAFTA) have Mexico scrambling to boost ties outside the United States, notably with the EU. Europe is keen, too: A deal with Mexico so soon after the big deal with Japan would send a powerful signal to the world about the EU’s openness for business.
Why it may not quite get there: While Japan accepted Europe’s defense of geographical indications, Mexico may have a harder time. Demands for investment protections are also problematic for Mexico, largely because agreeing to them could disrupt parallel talks with the United States on revamping NAFTA. ICYMI Florian Wicki and Jakob Hanke explain for POLITICO Pro Trade, Financial Services, Transport and Food and Agriculture subscribers why the Mexico-EU trade deal concerns everything from banks to avocados.
