Preferential trade agreements: The case of EU-Mexico

The paper evaluates the political and economic incentives to conclude the EU-Mexico Free Trade Agreement (FTA). It discusses EU and Mexican trade policy as well as the multilateral context for FTAs. In addition, using a disaggregated approach at the threedigit Standard International Trade Classification, it identifies the commodities that will be particularly affected by the FTA. The results show that considerable trade effects can be expected in a narrow range of products and that the EU is likely to gain much more than Mexico.