The European Union and Mexico have announced a significant agreement to strengthen their trade relationship, particularly in agriculture, ahead of potential U.S. tariffs. The updated deal will eliminate tariffs on key EU exports and enhance cooperation, benefiting EU farmers and agri-food businesses. While the agreement awaits ratification, it symbolizes the EU’s commitment to global trade and economic growth amid external pressures, including threats from the U.S. administration regarding tariffs and trade practices.
EU and Mexico Forge Stronger Trade Ties
On Friday, the European Union unveiled a significant agreement with Mexico aimed at bolstering their trade relationship, especially in the agricultural sector. This announcement comes just days before the inauguration of U.S. President Donald Trump, who has indicated intentions to impose tariffs on both regions.
Since 2000, the EU and Mexico have maintained a comprehensive political and trade agreement, which has been under revision since 2016 to enhance collaboration.
New Opportunities for European Exporters
“Today marks a monumental advancement in the partnership between Europe and Mexico,” commented European Commission President Ursula von der Leyen. She emphasized that EU exporters, particularly farmers and agri-food businesses, will reap the benefits of new trade opportunities.
The agreement extends beyond trade, aiming to enrich political dialogue and economic cooperation between the two regions. It is designed to unlock growth potential for EU agri-food exports to Mexico while promoting shared values and progressive sustainable development rules, as stated by the European executive.
As a net importer of agricultural products from the EU, Mexico stands to gain significantly from this partnership.
The enhanced agreement will abolish tariffs of up to 100% on key EU exports, including cheese, poultry, pork, pasta, apples, jams, marmalades, chocolate, and wine, according to the European Commission. Furthermore, it will enhance the protection of geographical indication labels for European products and streamline procedures to make agri-food exports more cost-effective.
While this agreement has been announced, it still requires ratification from both the EU and Mexico.
Seeking Growth in Challenging Times
Amid economic stagnation, the European Union is actively pursuing growth opportunities on the global stage and is intensifying efforts to establish or enhance international partnerships. Spanish Prime Minister Pedro Sanchez expressed enthusiasm, stating that this development signifies further progress toward an EU that is open to the world, capable of fostering trade and shared prosperity.
In December, von der Leyen concluded negotiations for a contentious free trade agreement with the Mercosur bloc, comprising Argentina, Brazil, Paraguay, and Uruguay. However, this agreement has faced criticism from European farmers concerned about potential unfair competition from South America and from environmental groups highlighting its possible ecological repercussions.
As President Trump prepares to return to the White House, he has threatened aggressive tariffs against both Europeans and Mexicans. His administration aims to pressure Mexico to take action against fentanyl trafficking, while expecting the EU to increase its imports of oil and gas, thereby reducing its trade surplus with the United States.
Despite these tariff threats, German Social Democrat MEP Bernd Lange praised the EU and Mexico’s commitment to open, fair, and rule-based trade, viewing it as a testament to the effectiveness of their trade policy. In contrast, French leftist MEP Leïla Chaibi criticized the EU’s approach, arguing that under pressure from Trump, it is opting for free trade at the expense of environmental integrity and social equity.