The European Union and Mexico have recently ratified a new trade agreement, which is expected to boost economic ties and promote trade between the two regions. One of the key aspects of this agreement is the rules of origin, which determine the conditions under which a product can be considered as originating from a particular country for the purposes of customs clearance.
The new agreement sets out the criteria that must be met for a product to qualify as originating from either the EU or Mexico. The rules of origin are designed to prevent third countries from taking advantage of the agreement by using it as a backdoor into the EU or Mexican markets.
Under the new agreement, a product will be considered as originating from the EU or Mexico if it is wholly produced in either region, or if it has undergone a substantial transformation in the region. This means that the product must be substantially transformed in terms of its nature, form, or composition, and must undergo a specific manufacturing process in the region.
In addition, the new agreement provides for the accumulation of content from other countries, which can be considered as originating from the EU or Mexico if it meets certain conditions. For example, materials or parts that originate from a third country can be considered as originating from the EU or Mexico if they have undergone sufficient processing or manufacturing in the region.
The rules of origin are an important aspect of any trade agreement, as they determine the conditions under which products can be traded between two countries or regions. They ensure that products are produced according to certain standards and that they meet the requirements of the importing country.
Overall, the EU-Mexico trade agreement represents a significant step forward in promoting closer economic ties between the two regions. The rules of origin will play a key role in ensuring that products are traded fairly and that the benefits of the agreement are shared equitably between the EU and Mexico. As such, it is likely to have a positive impact on businesses and consumers in both regions.
