The European Union and Mexico have signed a new agreement aimed at removing most barriers to trade between them.
The agreement, signed on Friday in Mexico City, includes a cooperation pact designed to strengthen ties amid global uncertainties, such as US tariff policies, Chinese export restrictions, and the war in Iran.
According to the European Commission, the agreement aims to boost political dialogue and cooperation by creating opportunities for trade, investment, and clean technologies. It will also strengthen supply chains and support climate goals.
European Commission President Ursula von der Leyen stated that the EU and Mexico are committed to building a better future together by safeguarding international institutions, promoting sustainable growth, and advancing human rights and gender equality.
The trade deal was finalised in 2025, but its signing was delayed. It expands a prior agreement from 2000 that was limited to industrial goods. The updated pact now covers services, public procurement, digital trade, investments, and agricultural products.
Under the revised agreement, nearly all goods will be allowed tariff-free entry, including Mexican chicken and asparagus, as well as European milk powder, cheese, and pork, subject to certain quotas.
European companies will gain new opportunities to participate in Mexican government contracts, while e-commerce barriers will be eased.
Kaja Kallas, the EU's High Representative for Foreign Affairs, emphasised on Thursday that the deal is about more than trade, describing it as a geopolitical statement.
Both the EU and Mexico are seeking to diversify their trade relations in response to global tariffs imposed by the USA.
