The European Union and Mexico signed a new trade agreement in Mexico City on Friday aimed at removing most remaining barriers to trade between the two sides, as both seek to diversify economic ties amid growing global uncertainty.
The agreement expands an earlier EU-Mexico trade pact dating back to 2000, which had been largely limited to industrial goods. The revised deal now covers services, public procurement, digital trade, investments, and agricultural products.
Under the agreement, nearly all goods traded between the EU and Mexico will eventually qualify for tariff-free access. Mexican exports including chicken and asparagus will gain wider access to European markets, while European milk powder, cheese, and pork products will enter Mexico under quota arrangements.
According to the European Commission, the agreement is intended to strengthen political cooperation while creating new opportunities for trade, investment, and clean technologies. Brussels also said the pact would help reinforce supply chains and support climate-related goals.
European Commission president Ursula von der Leyen said the EU and Mexico were committed to strengthening international cooperation and promoting sustainable growth. Kaja Kallas, the EU’s high representative for foreign affairs, described the agreement as “more than trade,” calling it a geopolitical signal at a time of rising global tensions.
The deal was finalised in 2025, but its signing was delayed. It comes as both the EU and Mexico seek to reduce their dependence on individual trading partners amid growing concerns over U.S. tariff policies, Chinese export restrictions, and instability linked to the war in Iran.
