The European Union and Mexico have concluded negotiations to beef up their 2000 Global Agreement, a pivotal step aimed at fostering political and economic ties. This landmark deal addresses the evolving geopolitical landscape and positions both parties to navigate challenges such as trade dependencies and global economic uncertainties.

The modernised agreement, signed on January 17, introduces extensive measures to enhance trade, including the elimination of tariffs on key agri-food products and bolstering access to public procurement markets on both sides. European farmers stand to benefit significantly, with tariffs as high as 100% on exports such as cheese, pork, and wine removed, streamlining trade in traditional EU products. Mexico, in turn, gains improved access for its agricultural and raw material exports, such as asparagus, copper, and zinc, reducing reliance on US markets.

This renewed partnership comes at a critical juncture, as both Mexico and the EU face potential economic disruptions from renewed US tariff threats under the incoming Trump administration. By diversifying trade relationships, Mexico aims to mitigate its overwhelming dependence on US trade, which constitutes 80% of its exports. Meanwhile, the EU sees this agreement as an opportunity to reduce its reliance on China, particularly for critical raw materials, while securing sustainable supply chains.

Key elements of the updated pact include provisions for digital trade, investment protections, and sustainable development. The agreement commits both parties to stringent environmental and labour standards, integrating legally binding mechanisms to address disputes. A dedicated chapter promotes digital innovation and the circular economy, aligning with global net-zero targets.

The EU ships approximately €2bn worth of agricultural and food products to Mexico each year, cementing the Latin American nation's position as the bloc's second-biggest trading partner in the region. Mexico ranks the EU as its third most significant trading partner globally.

EU Commission President Ursula von der Leyen hailed the deal as a testament to the benefits of open, rules-based trade, calling it a victory for economic security and sustainable development. The agreement reflects a shared ambition to deepen collaboration on human rights, migration, and multilateralism.

"The EU’s Global Agreement with Mexico will tear down trade barriers and drive investment, supporting job creation and prosperity on both sides. It will open opportunities and simplify procedures for EU SMEs, make it easier for EU companies to bid for Mexican government contracts, and improve protections for EU investors," stated Maroš Šefčovič, EU Commissioner for Trade and Economic Security.

Following final legal reviews, the deal awaits ratification by both parties, promising a strengthened partnership between Mexico and Brussels.