Euractiv | 22 May 2026
EU, Mexico sign revamped trade deal amid Trump tensions
par Sofia Sanchez Manzanaro
The EU and Mexico signed a revamped trade agreement on Friday at a summit in Mexico City, attended by Commission President Ursula von der Leyen and President of the European Council António Costa.
The signing follows the conclusion of negotiations on the renewed trade deal in January 2025. The original entered into force in 2000.
“It will be our first summit in more than a decade, and at the moment, when the international order is taking a heavy beating, this is about more than just trade. It is a geopolitical statement,” the EU’s top diplomat Kaja Kallas said on Thursday ahead of the summit.
The EU exports €53 billion in goods and €20.3 billion in services to Mexico, according to European Commission data, making Mexico one of its main trading partners in Latin America, alongside Brazil.
While the bloc is also an important partner for Mexico – its third largest – it still trails far behind Washington, the country’s main trading partner, with 80% of Mexican exports destined for the US.
The summit and signing of the new deal also come as Canada and Mexico seek to modernise their trade agreement, the USMCA, with an initial deadline for negotiations pencilled in for 1 July, though talks may run beyond that date.
The delay of more than a year between the conclusion of negotiations and the signing of the EU-Mexico deal has raised questions about potential reluctance to finalise the partnership for fear of triggering a reaction from the US.
Briefing journalists on Friday, a European Commission official brushed off such concerns, saying the delays were due to “translation and legal scrubbing”, while noting that the “political moment” for signing had to suit both sides.
In addition to the revamped trade deal, the Commission will present an investment plan under the Global Gateway umbrella, the Commission’s development funding initiative.
The plan covers sectors such as energy transition, transport, pharmaceuticals and health, water, agriculture, and digital transition.
Agri-food wins
The agri-food sector will be one of the biggest winners of the modernised agreement, according to the Commission.
“The major impact is in the agricultural field, which was not covered to the same extent as in other agreements in the 2000 version,” the official added.
The agreement removes tariffs on key European agricultural exports, including pork, dairy, cereals, fruit, and pasta, while the EU will cut tariffs on Mexican products such as coffee, fruit, chocolate, and agave syrup.
The deal also protects a whopping 336 additional traditional food names, preventing imitations from being sold on the Mexican market.
But when asked about the potential impact of such concessions on the USMCA framework – particularly as the US has pushed back against protections for traditional foods in agreements with other countries – the Commission again dismissed concerns.
“All these agreements are complementary,” an EU official said.
Other new elements include cooperation on digital trade and green transition, as well as commitments on fair trade and critical minerals.
