On Thursday in Mexico City, three leaders signed a historic trade agreement that will reshape business between Europe and Mexico. President Claudia Sheinbaum, European Commission President Ursula von der Leyen, and European Council President António Costa signed the Modernised Global Agreement, which removes customs duties on roughly 99% of products traded between the two regions.
The timing was deliberate. Both sides openly described the deal as a way to reduce dependence on the United States, where President Donald Trump's tariff policies have hurt exporters on both sides of the Atlantic. Costa called it a geopolitical statement, while von der Leyen emphasized a close strategic partnership between the EU and Mexico.
The numbers are significant. Annual trade between the EU and Mexico reached around €86 billion in 2025. The new agreement expands beyond the old 2000 deal, which only covered industrial goods. It now includes services, agriculture, digital trade, and investment. Mexican tariffs on European agricultural products will drop by approximately 95%, while mutual tariffs on electric vehicles and batteries will disappear entirely.
The agreement also protects 568 European geographical indications, like Roquefort cheese and Rioja wine, while protecting Mexican products like tequila. The EU announced a €5 billion investment package for Mexico, and the deal includes legally binding commitments on environmental protection and labour rights.
Negotiations took ten years, beginning in 2016 before concluding in January 2025. The agreement comes as the EU pursues a new trade strategy in Latin America, offering Mexico an important alternative to its traditional dependence on the United States.