Expert contribution: The future of the Mexican avocado is with the European Union

The European Union (EU) and Mexico have maintained a prosperous and close relationship
since the Global Agreement entered into force in 2000. For Mexico, the EU is a crucial partner
with which shares a series of principles within its international policy: respect for the norms of
international law, the commitment to multilateralism, the defense and promotion of human
rights, and the commitment to global issues such as joint efforts in favor of disarmament and
gun control [1].

In 2008, the European Union formalized the position of the Mexican State as a strategic partner,
reflected in the Strategic Association of the European Union with Mexico in 2009 and the Joint
Action Plan 2010. With this formalization, the Mexican State joins the list of allies strategic with
the United States, Japan, China, Canada, India, Russia, South Africa, Brazil, and South Korea.

For 2018, the highest percentages of Mexican exports to the European destination
predominated those of the industrial sector, machinery and transport equipment. The total trade
in goods reached 65,386 million euros, with a growth of 5.8% since 2017, making Mexico
represent 1.7% of the entire work of the European bloc, positioning itself as the eleventh trading
partner of the EU.

In 2020, the EU was Mexico's third largest trading partner, after the United States (506.9 billion
dollars) and China (81.5 billion dollars), representing 7.8% of the country's total trade.
By the year 2021, 19,080 companies with capital from the EU were in Mexico, located mainly in
Mexico City (23.6%), the State of Mexico (10.8%), Nuevo León (8.6), Puebla (5.6%) and Jalisco
( 5.4%). [2]

The intention to potentiate the results of this relationship in commercial and cooperation terms
was manifested in 2016, announcing the Global Agreement modernization.

Global Agreement updates intend to favor the exchange of goods and services between Mexico
and the EU, as well as investments and access for companies to the markets of both regions,
including exempting services, food, and beverages from tariffs. With this, practically one
hundred percent of the trade between parties will be exempt from taxes.

The updates to the new agreement are not limited to the commercial field since both parties
agree to cooperate on issues such as climate change, human rights, the fight against poverty,
or corruption.

The exemption of one hundred percent tariffs on food opens a new panorama for all those
organizations dedicated to exports within the agro-industrial sector in Mexico.

In particular, for the avocado sector, the renewal of the Global Agreement will mean a
competitive opening towards the countries with the highest fruit volumes of imports, after the
United States: the Netherlands, Spain, France, and Germany, market with a value greater than
2,500 million dollars [3].

According to statements made by MEP Massimiliano Smeriglio, co-chairman of the EU-Mexico
Mixed Parliamentary Commission, he expects to be able to sign the agreement in the first
months of 2023, anticipating the 2024 election dates [4].

At Frutos Guadalajara, the European Union is a strategic ally for the Mexican avocado. The vast
majority of our commercial efforts, certifications, and processes align with the demand and
principles of the area.

As an avocado grower and exporting company, we know the importance of harvesting fruits
under sustainability principles: environment, society, and economy. Beyond leaving it in a
speech, we have been concerned with seeking the certifications and standards proposed within
the eurozone. With the great possibility of a formal Global Agreement update in the coming
years, we encourage our fellow producers and exporters to consider the codes of the zone to
apply in their processes. It would not only mean a competitive advantage to open your
commercial horizons, but it would also guarantee to contribute to future generations' food
security.

[1]https://www.fundacioncarolina.es/wpcontent/uploads/2022/06/Especial_FC_EULAC_7_ESP.
pdf
[2]https://embamex.sre.gob.mx/belgica/images/Economicos/C_DEST_RELCOM_MXUE.pdf
[3] https://es.producepay.com/exportacion-de-aguacate-panorama-general/
[4] http://www.laprensa.mx/notas.asp?id=702096
[5]https://www.kas.de/es/web/mexiko/einzeltitel/-/content/renovacion-del-acuerdo-global-
desafio-para-mexico-y-la-union-europea
[6] https://www.eeas.europa.eu/mexico/la-union-europea-y-mexico_es?s=248

LinkedIn: Frutos Guadalajara
LinkedIn: Francisco Murguía 
Instagram: @frutos.guadalajara
Facebook: @frutos.guadalajara
Correo: sales@frutosguadalajara.com