The EU and Mexico signed a renewed trade deal on Friday at a summit in Mexico City attended by Commission President Ursula von der Leyen and European Council President António Costa.
Signature follows conclusion of negotiations for a renewed trade agreement in January 2025. The original entered into force in 2000.
“It will be our first summit in more than a decade, and at a time when the international order is being hit hard, this is about more than just trade. It’s a geopolitical statement,” EU top diplomat Kaja Kallas said Thursday ahead of the summit.
The EU exports €53 billion in goods and €20.3 billion in services to Mexico, according to European Commission data, making Mexico one of its top trading partners in Latin America, along with Brazil.
While the bloc is also an important partner for Mexico – its third largest – it still lags far behind Washington, the country’s main trading partner, with 80% of Mexican exports destined for the USA.
The summit and signing of the new agreement also come as Canada and Mexico seek to modernize their trade agreement, the USMCA, with an initial deadline for negotiations set for July 1, though talks could goes beyond that date.
The delay of more than a year between the conclusion of negotiations and the signing of the EU-Mexico deal has raised questions about possible reluctance to finalize the partnership for fear of provoking a backlash from the US.
Briefing reporters on Friday, a European Commission official dismissed such concerns, saying the delays were due to “translation and legal clearance”, while noting that the “political momentum” for the signing should suit both sides.
In addition to the renewed trade agreement, the Commission will present an investment plan under the Global Gateway umbrella, the Commission’s development finance initiative.
The plan covers sectors such as energy transition, transport, pharmaceuticals and health, water, agriculture and digital transition.
Agri-food wins
The agri-food sector will be one of the biggest winners of the modernized agreement, according to the Commission.
“The big impact is in the field of agriculture, which was not covered to the same extent as in other agreements in the 2000 version,” the official added.
The deal removes tariffs on key European agricultural exports, including pork, milk, cereals, fruit and pasta, while the EU will lower tariffs on Mexican products such as coffee, fruit, chocolate and agave syrup.
The agreement also protects 336 additional traditional food names, preventing imitations from being sold in the Mexican market.
But when asked about potential impact of such concessions under the USMCA – particularly as The US has backed down against protections for traditional foods in agreements with other countries – the Commission again dismissed the concerns.
“All these agreements are complementary,” said an EU official.
Other new elements include cooperation on digital trade and the green transition, as well as commitments on fair trade and critical minerals.
The EU races to close Mexico’s deal with Washington in the near future
The EU is set to sign its renewed trade deal with Mexico next week, as…
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