The European Union and Mexico finalised negotiations to modernise their 2000 Global Agreement, allowing both sides to fight trade dependence and global economic uncertainty.
The modernised agreement, signed on 17 January, provides for increased trade, including the elimination of tariffs on key agri-food products and greater access to government procurement markets. Under the treaty, European farmers will benefit significantly from the elimination of the 100 duty on certain exports.
Mexico, in turn, enjoys better access to its agricultural and commodity exports of asparagus, copper and zinc. The move is expected to reduce dependence on US markets.
The renewed partnership comes at a time when Mexico and the EU are facing potential economic turmoil due to renewed US tariff threats voiced by President Donald Trump. The EU also sees the agreement as an opportunity to ease its reliance on China.
The agreement commits both sides to strict environmental and labour standards in line with global net-zero targets. EU Commission President Ursula von der Leyen welcomed the deal, calling it a victory for economic security and sustainable development. Meanwhile, EU Commissioner for Trade and Economic Security, Maroš Šefčovič, stated that the agreement would “tear down trade barriers.”
The EU’s Global Agreement with Mexico will tear down trade barriers and drive investment, supporting job creation and prosperity on both sides. It will open opportunities and simplify procedures for EU SMEs, make it easier for EU companies to bid for Mexican government contracts, and improve protections for EU investors.
After final legal scrutiny, the agreement awaits ratification by both sides. The pact is expected to strengthen the partnership between Mexico and the EU, as the bloc supplies around €2bn worth of agricultural and food products annually.