The European Union is moving forward with the modernization of its trade agreement with Mexico amid a shifting global trade landscape and rising tariff pressures. The initiative aims to diversify markets, strengthen strategic partnerships, and reduce commercial risks.
Mexico’s relevance in this strategy reflects the scale of the bilateral relationship. According to Mexico’s central bank, trade between Mexico and the EU reached nearly $86 billion between January and November 2025, representing about 7% of Mexico’s total trade. Both sides seek to expand this foundation through a more ambitious and updated agreement.
Mexican exports to the EU are largely concentrated in industrial sectors such as machinery, mineral products, chemicals, transport equipment, and basic metals. For the EU, Mexico is now its second most important trading partner in Latin America, after Brazil.
Following the conclusion of negotiations to modernize the Global Agreement in 2025—a process that began in 2016—the EU is preparing to move toward signing the updated pact. This effort aligns with a broader strategy that includes recent trade developments with Mercosur, India, and deeper engagement with Vietnam.
The modernized agreement is expected to deepen economic ties, strengthen more resilient value chains, and promote cooperation and sustainability. Since the original agreement took effect in 2000, bilateral trade has increased fivefold, with Germany, Spain, and Italy accounting for more than half of the exchange.
However, analysts note that fully leveraging these opportunities will require Mexico to advance public policies that facilitate integration into higher value-added sectors.
Beyond economics, the agreement also has a strategic and political dimension, reinforcing EU–Mexico relations in an increasingly fragmented global environment. Currently, the EU maintains a trade surplus with Mexico exceeding $36 billion.
The new pact is expected to eliminate tariffs on nearly 99% of traded goods, expanding access for European agri-food products and strengthening participation in sectors such as services, public procurement, and investment. It also introduces clearer rules, reduces administrative barriers, and reinforces commitments on labor, environmental standards, and supply chains.
Overall, the modernization of the agreement provides a deeper framework for trade and cooperation, with the potential to deliver greater predictability and stability in a rapidly changing global economy.
Source: Expansión
