Mexico, EU Conclude Modernization of Trade Agreement

Mexico and the European Union have finalized negotiations to modernize their Global Agreement on trade, marking a significant milestone after nine years of discussions. The updated agreement expands the scope of the original 2000 treaty, to include services, investments, government procurement, and agricultural products.  

Under the new terms, 95% of tariffs on agricultural and food products will be eliminated, providing opportunities for both regions. The EU will gain tariff-free access to export goods such as cheese, pork, poultry, pasta, apples, jams, chocolate, and wine to Mexico. In 2023, trade between Mexico and the EU amounted to US$84.9 billion, with a US$24.6 billion trade surplus in favor of the EU.  

The agreement also increases the number of EU-protected geographical indications to 568, safeguarding iconic European products. Export processes will be streamlined to facilitate trade, and the deal incorporates commitments to labor rights, environmental protection, and climate change measures.  

“This agreement will ensure a level playing field for European companies in Mexico,” the European Commission stated, emphasizing the inclusion of legally binding mechanisms for dispute resolution to enforce compliance.  

Modernization effort aligns with Mexico's broader strategy to diversify trade relations amid ongoing challenges in its relationship with the United States. It also reflects a mutual commitment to sustainable trade practices.