European Fee President Ursula von der Leyen and European Council President Antonio Costa signed a revised commerce settlement with Mexico on Friday, on the heels of the Mercosur settlement, as a part of the EU’s efforts to increase its affect in Latin America. settlement It has come into impact.
The settlement was signed by von der Leyen and Costa, joined by Mexico’s President Claudia Sheinbaum, on the EU-Mexico summit in Mexico, amid rising geopolitical tensions and shifting world alliances following the return of the US president to the White Home.
The financial partnership between the 2 medium-sized powers displays efforts on each side to cut back dependence on the USA, the EU and Mexico’s largest buying and selling associate, and on China, the place Mexico is a hub for electrical car manufacturing.
“The EU and Mexico are dedicated to an in depth strategic partnership,” von der Leyen stated, including: “Right now’s modernized settlement represents a standard imaginative and prescient for the long run and can convey many advantages to each side.”
The EU-Mexico commerce deal strengthens the EU’s diversification technique by renewing a 20-year-old settlement that already eliminated tariff limitations to bilateral commerce.
Beneath the brand new settlement, the EU could have entry to new markets for merchandise similar to agricultural merchandise (pork, dairy merchandise, cereals, fruit and pasta), medicines and equipment.
EU strengthens commerce ties with Latin America
Mexico is the EU’s second largest buying and selling associate in Latin America, and the EU is Mexico’s second largest export market. Commerce between the 2 sides reached 86.8 billion euros in items in 2025 and 29.7 billion euros in companies in 2024.
The determine is way smaller than Mexico’s commerce with its neighbor the USA, which totaled greater than $900 billion in items and companies in 2024, however the deal comes as Mexico faces rising stress from a extra protectionist White Home.
The EU, for its half, is grappling with repeated tariff threats from President Trump, regardless of a commerce deal set for 2025.
EU Commerce Commissioner Maroš Šefčović, who was additionally in Mexico Metropolis, stated: “At a time of rising world uncertainty, the EU and Mexico are selecting openness, partnership and ambition.” He identified that greater than 43,000 European firms export to Mexico and greater than 11,000 EU firms have operations within the nation.
Relating to agriculture, the settlement will open new markets for Mexican merchandise similar to espresso, fruit, chocolate and agave syrup.
In parallel with the opening of the general public procurement market, a complete of 568 geographical indications in Europe and 26 in Mexico can even be protected, the fee stated.
With the brand new settlement, the EU additionally needs to sign a stronger presence in Latin America, the place China is increasing its affect.
“97% of Latin America and the Caribbean’s GDP will probably be lined by subtle preferential agreements with the European Union,” a senior EU official stated, including: “No different area on the earth has such a dense and tightly knit community of agreements.”
The EU has already established new buying and selling relationships with Argentina, Brazil, Paraguay and Uruguay by means of the Mercosur commerce settlement, which is able to enter into drive provisionally on Could 1 and liberalize commerce flows between the EU and these international locations.
Nonetheless, the deal confronted sturdy opposition from EU farmers involved about unfair competitors from imports from Latin America, and ratification was placed on maintain after European parliamentarians challenged the deal on the EU Court docket of Justice.
Brussels has argued that the Mexico deal ought to keep away from the backlash confronted by Mercosur, as imports of delicate agricultural merchandise stay restricted by tariff quotas.
