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Significance
An agreement in principle in 2018, to modernise a 2000 trade deal to deepen trade and investment, is yet to be implemented. At the same time, controversial energy reforms pushed by the Mexican government, which pose commercial risks for EU investors and clash with the bloc’s climate priorities, have been condemned by European firms and officials.
Impacts
Mexico’s nationalist turn in energy policy will dampen investment from EU firms in oil and gas, as well as renewables.
The EU’s push to mobilise green finance for developing economies will prioritise other countries with more favourable policy frameworks.
The shift towards dirty energy could make Mexico a target of the EU’s newly announced carbon tax on imports.
Keywords:
Mexico,
EU,
EUR,
LA/C,
MEXICO/EU,
economy,
industry,
international relations,
politics,
social,
agriculture,
constitution,
electricity,
energy,
foreign investment,
foreign trade,
government,
policy,
private sector,
public sector,
reform,
renewable energy,
talks,
aerospace,
automobile,
climate,
gas,
oil,
Beverages,
Food & Tobacco
© Oxford Analytica 2021. All rights reserved. This content contains general information about geopolitical, macroeconomic and social developments or (where stated) other matters. It does not contain advice or recommendations that may be relied on. Where links to external websites are provided, this does not indicate that Oxford Analytica or Emerald agree with, endorse or have checked for accuracy the contents of said sites.
2021
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