Common use of TRADE IN GOODS Clause in Contracts

TRADE IN GOODS. The original agreement did not contain a number of provisions for rules for trade in goods that have by now become standard in trade agreements. It also left out of liberalisation a number of tariff lines in agriculture and fisheries. Agriculture and fisheries With the new Agreement full liberalization will reach more than 85% of lines which had not been liberalized. Exclusion of products has been kept to the strict minimum and refers only to the sugar sector. For the remaining items increased market access has been negotiated, with partial liberalization and Tariff Rate Quotas (TRQs) Mexico obtained the following TRQs beef (10,000 t carcass weight equivalent with 7,5% duty phased-in in 5 years), beef offals (10,000 t carcass weight equivalent with 7,5% duty phased-in in 5 years), poultry will be fully liberalized except for chicken breast (TRQ with preferential duty of 10.000 t) and egg products (5000 t egg equivalent for egg yolks). On bananas, export of Mexican bananas will be aligned to the preferential tariff as for the other preferential bananas exporter (75€/t) at the moment of the entry into force of the agreement. Mexico also obtained a full liberalization for pork with the exception of frozen ham (TRQ of 10,000 t carcass weight equivalent). On honey, Mexico will benefit from full liberalization in 7 years. During the dismantling period, the existing TRQ for honey granted under the existing agreement will be replaced at entry into force by a TRQ of 35,000 duty free. Finally, on ethanol (25.000 t phased-in in 5 years) and raw sugar for refining only (30.000 t at 49€/t phased-in in 3 years). On the EU side, for cheese and dairy products significant market access improvements were agreed for EU's core export products to Mexico. The agreement will provide for TRQ of 20,000 t in 5 years for mature cheeses and 5,000 t in 5 years for fresh cheeses, 50,000 t phased in 5 years for skimmed milk powder. Dairy preparation will benefit from total TRQs of 13.000 t. The tariff for infant formula will be reduced to 50% of the MFN rate in 5 years. There will be a considerable improvement of market access conditions for EU's exports for pork (fully liberalized except a TRQ of 10.000t of loins) and poultry (full liberalization at entry into force for mechanically deboned chicken meat and 20.000 t of leg quarters). All TRQ obtained by the EU are duty free. For fruits not yet liberalized exports of apples will reach full liberalization in 10 years and tin peaches will be liberalized in 7 years. For food and processed agricultural products (PAPs), this agreement will achieve liberalisation of all processed agriculture products with rapid or immediate tariff dismantling for key products such as pasta, chocolates, confectionery and chocolates, biscuits, lactose and lactose syrup. This result implies improved market access to both parties and cheaper imports for consumers. Industrial goods Full liberalisation was already agreed in all sectors under the existing agreement with chemicals, plastics, cosmetics and textiles and clothing, where the EU is very competitive.