Trade volume reports from the European Union and Mexican government statistics

EU and Mexico Finalize Revamped Free-Trade Agreement, Eliminating 95% of Tariffs on Agricultural Products Amid Trump's Threats

Jan 17, 2025, 05:41 PM

The European Union and Mexico have finalized a revamped free-trade agreement, concluding negotiations that began in 2016. The agreement, which updates the original Global Agreement in effect since 2000, aims to deepen political dialogue, enhance cooperation, and expand economic ties between the two regions. This move comes just days before the inauguration of U.S. President-elect Donald Trump, who has threatened both the EU and Mexico with new tariffs. The modernized agreement is expected to significantly boost trade and investment, particularly in the agricultural sector, with Mexico agreeing to eliminate tariffs on up to 95% of European food products. The deal also seeks to facilitate strategic cooperation on key geopolitical issues, including climate change and human rights, and to strengthen supply chains for critical raw materials. The agreement, which saw trade between the EU and Mexico reach 82,000 million euros in 2023, was finalized by European Commissioner for Trade Maros Sefcovic and Mexican Secretary of Economy Marcelo Ebrard. EU Commission President Ursula von der Leyen expressed eagerness to work with Mexican President Claudia Sheinbaum to fulfill the agreement's promises. The agreement requires ratification by both parties before it can take effect.