Mr President, ladies and gentlemen, Commissioner, the debate I am opening under the very long title you have just announced represents the final phase of Parliament’s work, carried out in close contact with the Commission, to strengthen relations with Mexico on the basis of the principles and values which underpin our democratic system. In May 1999 Parliament gave its assent to an Economic Partnership, Political Coordination and Cooperation Agreement, signed in 1997 between the European Community and its Member States, on the one hand, and Mexico, on the other. Once it has been ratified by all the Member States, it will replace the cooperation agreement signed between the Community and Mexico in 1991. In May 1998 Parliament gave its assent to a provisional interim agreement on trade and related issues associated with the 1997 agreement. The aim was to enable negotiations on liberalising the trade aspects of the global agreement falling within the Community’s competence to begin as soon as possible, without having to wait for ratification by the fifteen Member States to be completed. Now that these negotiations have been concluded and the Council has expressed its view on their content, it falls to Parliament, in response to the Council’s formal consultation, to give its opinion on the results of the negotiations. Here I want to thank the Commission for making this consultation by the Council possible in close cooperation with Parliament – I am delighted about that and I hope it will set a precedent. However, I am sorry it did not adopt the commitment of the previous Commission to keep us informed of the progress of the negotiations, given the importance of the issues involved. Turning to the substance of my report, the first thing I want to highlight is that, although we are dealing with an implementation agreement exclusively concerned with trade, there is a political dimension to bear in mind in expressing our opinion. This is the case because the text my report covers is set in the context of the Economic Partnership, Political Coordination and Cooperation Agreement, and that agreement is a reflection of the will to promote a genuinely democratic political system, respect for human, social and environmental rights and a fairer social balance, thanks to the greater economic development the liberalisation of trade will generate. In fact, Article 1 of that agreement makes respect for democratic principles and human rights, in the widest sense, an essential factor and the very foundation of the agreement. Again, the inclusion of a clause on fulfilment of obligations, providing for the agreement to be suspended in case of failure to meet the obligations laid down in Article 1, also guarantees the commitment of the parties to democracy and respect for fundamental rights. In addition, by institutionalising cooperation between the European Union and Mexico, especially on human rights issues, social affairs and the fight against poverty, an instrument is being created which could be extremely useful for reducing the social inequalities which persist in Mexico and for improving the living conditions of the less advantaged strata of the population. My second point, relating to the content of the negotiations on the implementation of Articles 3, 4, 5, 6 and 12 of the interim agreement, covering trade in goods, public procurement, competition, the consultation mechanism for questions relating to intellectual property and dispute settlement, is to highlight the fact that this package of measures represents a good agreement. Although for certain sectors there may be flaws – I am thinking specifically of the textiles sector, where the rules of origin issue causes great concern – the effects will be beneficial for both the European Union and Mexico. For the European Union, because the establishment of a free trade area will enable it to rebuild the presence Member States had in Mexican markets before the NAFTA agreement came into force, involving new expansion opportunities for European companies. For Mexico, because it will be able to diversify and introduce balance into its external trade, currently 80% dependent on its NAFTA partners, and at the same time increase the volume of its exports to the European Union, with the consequent favourable impact this increase will have on the Mexican economy. Of course, during the transition period, and until all products have been fully liberalised, the agreement will be more beneficial to Mexico than the European Union, but this asymmetry also takes account of the levels of development and competitiveness of the European economy as compared with Mexico’s. All the same, in spite of this asymmetry, Community producers will clearly be in a much better position to compete in the Mexican market than they have been up to now. For all these reasons, ladies and gentlemen, and by a very large majority, the Committee on Industry, External Trade, Research and Energy recommends a vote in favour of the Council Decision on the result of negotiations whose benefits we must monitor to make sure they genuinely contribute to promoting a more democratic political system and respect for human rights and social justice.

Political group: PPE-DE