Nearly 200 Years of Diplomacy Drive Mexico-Netherlands Trade Ties

Across their nearly two centuries of diplomatic relations, the partnership between Mexico and The Netherlands has evolved in a complex and positive way. Today, both countries find common ground on many important global issues, including human rights, climate action, and digital security. Furthermore, both countries consider their economic and commercial ties to be intensive and growing, with trade flows totalling US$4.57 billion in 2024. 

On June 15, 1827, Mexico and The Netherlands signed the Treaty of Friendship, Navigation, and Commerce, which formalized diplomatic relations between the two nations. With this treaty, the Kingdom of The Netherlands became one of the first European powers to formally recognize Mexico as an independent country following its independence from Spain.

A Business-Driven Relationship 

Trade between Mexico and The Netherlands is sustained by the Mexico-EU Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement), in effect since 2000. On Jan. 17, 2025, the EU and Mexico concluded negotiations for a modernized Global Agreement, which is now pending ratification by the parties. According to the European Commission, the new deal aims to increase EU agri-food exports by removing high tariffs and will make it easier for European companies to bid for government contracts and invest in Mexico. The updated agreement will also simplify standards and procedures to benefit small businesses, strengthen protections for climate and labor rights through enforceable commitments, and ensure a more secure supply of critical materials for the green and digital transitions.

Economic relations are a fundamental priority for Mexico and The Netherlands. In an interview with MBN, the Netherlands Ambassador to Mexico, Wilfred Mohr, detailed that about half of The Netherlands Embassy’s staff works in the economic section, which is further enhanced by The Netherlands Business Support Office (NBSO) in Queretaro. Both entities are aimed at supporting Dutch companies looking to export or invest in Mexico. 

Mexico is The Netherlands’ 20th biggest trade partner outside the EU, with over 1,857 Dutch companies exporting to Mexico. In 2024, Mexico-Netherlands trade was valued at US$4.57 billion. That year, Mexico exported US$2.36 billion to the Netherlands and imported over US$2.21 billion, resulting in a trade surplus of US$154 million for Mexico, according to the Ministry of Economy (SE). 

In 2024, Mexico's main export to The Netherlands was telephones and mobile devices, with sales totaling US$516 million. The primary states of origin for these sales were Mexico City, Jalisco, and Chihuahua. In the other direction, Mexico's main import from The Netherlands was tractors, with purchases valued at US$230 million. The top destinations for these Dutch goods were Mexico City, Queretaro, and Nuevo Leon.

Mexico Offers Diverse Investment Opportunities 

Ambassador Mohr highlights the increasing interest in Mexico from Dutch companies, especially due to its proximity to the United States and the country’s adherence to USMCA. He said that there are seven priority sectors for the Embassy. The largest of these is agriculture, with a focus on greenhouse technology and circular economy practices, followed by water management. The energy sector is another priority, with a strategic shift from oil and gas to renewables like hydrogen. The other key sectors identified are maritime infrastructure, life sciences and health, automotive, and smart cities and mobility.

Mohr notes that interest from Dutch companies in Mexico has increased over the past years, primarily through the expansion of existing operations rather than new greenfield investments. This is evidenced by some projects, including Heineken opening its eighth brewery in Yucatan, Unilever building a new cosmetics plant in Nuevo Leon, and Trouw Nutrition constructing its third factory in Queretaro. A secondary trend involves some Dutch SMEs relocating production from China to Mexico to take advantage of shorter logistical distances and the benefits of the USMCA.

From January 1999 to December 2024, Mexico has received a cumulative total of US$20 billion in Foreign Direct Investment (FDI) from The Netherlands. In 2024, FDI from the Netherlands into Mexico reached a total of US$1.88 billion. The majority of this more recent investment was in the form of inter-company debts, which accounted for US$1.33 billion, followed by the reinvestment of earnings at US$540 million, and new equity capital totaling US$9.63 million.

The states that received the highest amount of FDI from The Netherlands in 2024 were the State of Mexico with US$1.01 billion, Nuevo Leon with US$390 million, and Coahuila with US$362 million. 

The Netherlands: Pursuing Moderated Growth Amid Uncertainty 

The Netherlands is a parliamentary constitutional monarchy and a member of the European Union, using the Euro as its official currency. The country has a population of 17.99 million people, and while Dutch and Frisian are the official languages, English is widely spoken as a second language. Economically, the Netherlands had a GDP of US$1.23 trillion in 2024, making it the fifth-largest economy in the EU by GDP and the third-largest in terms of GDP per capita, according to the European Commission.

The Netherlands is expected to grow by 1.3% in 2025 and 1.2% in 2026. This growth will be mainly sustained by domestic demand, which will be driven by an ambitious public investment agenda focused on defense, the green transition, and the housing market. However, this outlook is tempered by increased economic uncertainty, largely due to US tariffs and potential retaliatory actions from other trading partners. This uncertainty is expected to affect business investment spending and may cause a slight increase in precautionary savings among consumers, the European Commission warns. While the direct negative impact on total trade is estimated to be relatively small, as only 5% of Dutch goods are exported to the United States, certain key sectors like the steel, machinery, and vehicle industries are expected to be disproportionately affected.