The European Union and Mexico have signed a modernised trade agreement that will remove tariffs on 99% of goods exchanged between the two economies. The pact updates the original EU–Mexico agreement from 2000 and is designed to strengthen trade ties, simplify customs procedures and expand cooperation in areas such as investment, digital trade and sustainability.
The agreement is expected to particularly benefit agricultural and food exports. Mexico will eliminate tariffs on many European products including pasta, chocolate, cheeses and poultry products, while EU markets will become more accessible to Mexican goods such as coffee, honey, fruit and vegetables. Some tariffs that currently reach up to 100% will gradually disappear over the next several years.
European leaders see the deal as strategically important at a time of growing global protectionism and uncertainty in relations with the United States. For Mexico, the agreement helps diversify export markets beyond its heavy dependence on the US economy. Bilateral trade between the EU and Mexico already exceeds €80 billion annually, making the EU one of Mexico’s largest trading partners.
The updated pact also includes commitments on labour rights, environmental protection and climate action, alongside provisions aimed at supporting investment and small businesses.
