Trade data from Eurostat or Mexican trade authorities

EU and Mexico Finalize Trade Deal Eliminating 95% of Tariffs on Agricultural Products Amid Trump Threats

Jan 17, 2025, 05:41 PM

The European Union and Mexico have finalized a modernized free trade agreement, just days before the inauguration of U.S. President-elect Donald Trump, who has threatened both regions with tariffs. The agreement, which updates the existing pact from 2000, aims to boost EU exports in key areas such as financial services and e-commerce, strengthen the supply chain of critical raw materials, and encourage EU investment in Mexico. It also allows EU companies access to Mexican government contracts and vice versa. The deal is set to eliminate 95% of tariffs on agricultural products, including cheeses, poultry, pork, pasta, apples, jams, chocolate, and wine, and includes provisions to safeguard geographical indications for products like Parma ham and champagne. Ursula von der Leyen, President of the European Commission, stated that the agreement will create new business opportunities for EU exporters, particularly farmers and food companies. The agreement was concluded by EU Trade Commissioner Maros Sefcovic and Mexican Economy Secretary Marcelo Ebrard. The agreement is expected to increase trade between the EU and Mexico, which reached €82 billion in goods in 2023, with Mexico being the EU's second-largest trading partner in Latin America.