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EU and Mexico Finalize Revamped Free-Trade Agreement to Boost Agricultural Exports and Economic Security Amid Trump's Tariff Threats

Jan 17, 2025, 03:35 PM

The European Union and Mexico have finalized a revamped free-trade agreement, coinciding with the impending inauguration of U.S. President-elect Donald Trump, who has threatened both regions with new tariffs. The agreement, which updates a previous accord in place since 2000, aims to deepen political and economic ties, enhance cooperation on key geopolitical issues, and promote economic opportunities. It is set to substantially increase trade and investment between the two parties, with a focus on reducing tariffs on European agricultural exports such as cheese, poultry, pork, pasta, apples, jams, chocolate, and wine. The deal also seeks to facilitate strategic cooperation on issues like supply chain risks, sustainable supply of critical raw materials, and climate change action. The agreement comes as both the EU and Mexico look to strengthen their economic security amid global trade uncertainties. In 2023, the trade in goods between the EU and Mexico reached 82 billion euros, while services trade was 22 billion euros in 2022. The negotiations were concluded following discussions between European Commissioner for Trade Maros Sefcovic and Mexican Economy Secretary Marcelo Ebrard. European Commission President Ursula von der Leyen and Mexican President Claudia Sheinbaum are set to work together to fulfill the agreement's promises. European Parliament's International Trade Committee Chair Bernd Lange and rapporteur Borja Giménez have welcomed the updated agreement, with Kaja Kallas, Vice President of the European Commission, highlighting the new era in the strategic partnership between the EU and Mexico.