The European Union and Mexico signed a long-awaited free trade deal on Friday as they look to reduce their dependence on the United States.
“The goal is simple: we want to create more jobs and generate more value on both sides of the Atlantic,” European Commission President Ursula von der Leyen said during the eighth EU-Mexico summit in Mexico City.
“This agreement gives us great wings to fly high,” he said.
dealWhich expands on the 2000 trade agreement, providing duty-free access for almost all goods, including agricultural products. The old agreement covered only industrial goods.
The agreement comes amid ongoing negotiations on a three-way free trade agreement between Mexico, the United States and Canada.
Closer trade relations between EU, Mexico
Mexico’s President Claudia Sheinbaum emphasizes the need to “open other horizons.”
During the press conference, Sheinbaum said, “We are living through complex times on the international stage, but it is in such moments that we must work with greater cooperation, dialogue and a humanitarian approach. Future prosperity must be shared, otherwise it will not be sustainable.”
According to Mexico’s Economy Ministry, the new agreement could increase Mexican exports to the EU from about $24 billion (€21 billion) to $36 billion by 2030. Meanwhile, the EU exports about $65 billion worth of goods to Mexico each year.
Immediately after the signing of the agreement, European Council President Antonio Costa called the agreement “a true geopolitical statement.”
“With a modernized global agreement, we are better prepared to meet the challenges of our times,” he said.
EU, Mexico both hit by Trump’s tariff offensive
In April 2025, sweeping new tariffs were imposed on the EU under US President Donald Trump’s so-called “Liberation Day” tariffs and prepared countermeasures, although they were later suspended to make room for negotiations.
Earlier this week, the EU agreed to implement a deal it signed with Washington last July that sets 15% tariffs on most European goods.
Mexico has also been hit by US tariffs on automotive, steel and aluminum exports.
About 80% of Mexican exports go to the US, whose economy has become more protectionist during Trump’s second term.
Edited by: Dmytro Lyubenko