A New Chapter for Trade, Cooperation, and International Shipments to and from Mexico
On January 17, 2025, the European Union and Mexico successfully concluded negotiations for a modernized Global Agreement, marking an important evolution in political, economic, and commercial relations between the two regions. This update represents a historic step, creating a stronger, more strategic partnership to address global challenges and promote new opportunities for shared growth.
The agreement defines the joint EU-Mexico ambition to promote and protect human rights, multilateralism, as well as international peace and security.
Boosting Trade and Enhancing Economic Security: The New EU-Mexico Agreement
The commercial pillar of the modern EU-Mexico agreement further strengthens an already thriving trade relationship. In 2023, trade in goods between the European Union and Mexico reached 82 billion euros, while bilateral trade in services surpassed 22 billion euros in 2022, solidifying Mexico as the EU’s second-largest trading partner in Latin America (source: eeas.europa.eu).
The new agreement will offer fresh opportunities to expand trade and foster economic security, with a focus on:
- Growth in EU Service Exports:
The treaty will stimulate the export of EU services in key sectors such as financial services, transport, e-commerce, and telecommunications, creating a favorable environment for EU businesses. - Strengthening Critical Raw Materials Supply Chains:
Improving the local supply of strategic raw materials will enhance the competitiveness of European industries, ensuring a more resilient and secure supply chain. - Elimination of Non-Tariff Barriers and Equal Conditions:
The agreement aims to remove non-tariff barriers and establish conditions of fairness, with particular focus on intellectual property rights, promoting fair and unobstructed access to the Mexican market. - Equal Access to Public Procurement:
European companies will have the opportunity to participate in Mexican government procurement contracts on equal terms with local businesses, opening new opportunities for EU exporters and investors. - Encouraging EU Investments in Mexico:
The new agreement strengthens the protection of European investments, creating a stable and secure environment for EU investors in Mexico. - Promoting the Digital Transition:
With the inclusion of a dedicated chapter on digital trade, the agreement supports the digital transformation of both regions, facilitating the exchange of services, data, and technological innovation. - Sustainability and Circular Economy:
The agreement improves rules for the reuse and repair of products, promoting sustainability and a circular economy, key elements for more eco-friendly and responsible trade.
Benefits for European Farmers
The new agreement will create numerous opportunities for European farmers and agri-food exporters, as Mexico is a net importer of EU agri-food products. In particular, the agreement:
- Eliminates tariffs up to 100% on key EU export products such as cheese, poultry, pork, pasta, apples, jams, chocolates, and wines;
- Expands the protection of iconic European products (Geographical Indications) to 568, ensuring increased recognition and value in the Mexican market;
- Makes agri-food exports quicker and more affordable by simplifying procedures, reducing costs and time to access the Mexican market.
Conclusion: A Step Forward for Sustainable Trade
The new EU-Mexico agreement not only strengthens trade and economic security but also supports the green and digital transition, providing European businesses with the resources needed to address global challenges. With the elimination of non-tariff barriers, protection of investments, and equal access to public procurement contracts, the agreement contributes to the growth of a fairer, more sustainable, and interconnected trade environment.
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