Official trade statistics from Eurostat or Mexico's National Institute of Statistics and Geography (INEGI)

EU and Mexico Finalize Agreement to Eliminate 95% of Tariffs on Agricultural Products, Boosting Exports by 75%

Jan 17, 2025, 05:57 PM

The European Union and Mexico have finalized negotiations to modernize their free trade agreement, originally established in 2000, just days before Donald Trump's inauguration as U.S. President. The updated agreement aims to enhance economic and political cooperation between the two regions, with a focus on increasing trade opportunities. It is designed to eliminate 95% of tariffs on agricultural products and other goods, and to facilitate access to government contracts for companies from both sides. The deal comes as both the EU and Mexico face potential tariff threats from Trump, who has promised to impose heavy tariffs on their exports. Ursula von der Leyen, President of the European Commission, and Maros Sefcovic, the EU's Trade Commissioner, along with Mexico's Secretary of Economy Marcelo Ebrard, have been key figures in these negotiations. Spanish Prime Minister Pedro Sánchez has celebrated the agreement, noting its potential to increase EU exports to Mexico by 75% and save European companies €100 million annually in tariffs.