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4w ago

EU and Mexico Sign Expanded Free Trade Agreement

European Parliament approval will determine when the pact’s tariff cuts and new market access come into force.

Mexico's President Claudia Sheinbaum speaks during a daily press conference, after the U.S. Justice Department said it had charged the governor of Mexico's Sinaloa state, Ruben Rocha, and other officials for their alleged involvement with the Sinaloa Cartel at the National Palace, in Mexico City, Mexico April 30, 2026. REUTERS/Henry Romero/File Photo
European Commission President Ursula von der Leyen arrives for a meeting of the College of European Commissioners in Brussels, Belgium, May 6, 2026. REUTERS/Yves Herman
EU chief Ursula von der Leyen will sign an expanded trade deal with Mexico aimed at reducing both countries'dependence on trade with the United States
Mexico and the European Union have both been hit by US President Donald Trump's steep tariffs

Overview

  • Leaders signed the upgraded pact in Mexico City on Friday, May 22, 2026, formally extending the 2000 industrial-only deal to cover services, investment, digital trade and government procurement.
  • The agreement removes most remaining tariffs for goods between the parties and gives broader access for sectors such as auto parts, machinery and pharmaceuticals.
  • Trade in sensitive farm products is liberalised but managed by quotas and phased tariff rates for items like Mexican chicken and certain European cheeses and pork.
  • Mexico hopes the deal will diversify its trade away from the United States and raise exports to the EU from about $24 billion today toward $36 billion a year by 2030, according to Mexico’s economy ministry.
  • The pact now enters domestic approval processes in the EU and Mexico with a European Parliament vote expected in the coming months and potential political changes before implementation that could affect timing and scope.