Mexico City: Mexico and the European Union (EU) unveiled a revamped trade deal aimed at improving trade and investment ties this Friday.
The new Global Trade Agreement, which builds on the original agreement signed 25 years ago, lowers Mexican tariffs on European agricultural imports and removes impediments to European investment in Mexico.
It also attempts to increase Mexican exports of raw commodities such as fluorspar, antimony, copper, zinc and lead.
In a statement, the EU underscored the partnership’s strategic importance, citing their shared commitment to freer trade and global economic openness.
“Today marks a new chapter in our strategic collaboration with Mexico. Our updated deal demonstrates the EU and Mexico’s shared commitment to freer trade and an open global economy,” said Vice President of the European Commission Kaja Kallas.
The new pact also makes it easier to cooperate on crucial geopolitical matters.
The statement comes as US President-elect Donald Trump prepares to take office, increasing fears over his promise to levy up to 25% taxes on Mexican imports. While the new EU agreement may help offset potential losses from disrupted US-Mexico commerce, trade volume between Mexico and the EU remains low.
In 2023, trade between the two regions was $84 billion, compared to more than $800 billion in US-Mexico trade.
The Mexican Economy Ministry has not commented on the amended deal with the EU. However, the timing of the agreement highlights Mexico’s desire to diversify its economic alliances and minimize reliance on its northern neighbour, as US-Mexico trade relations become more unclear.
PNN & Agencies
