The European Union and Mexico have signed a series of agreements this Friday that strengthen their commercial and political relationship, betting on multilateralism and the elimination of tariff barriers in the face of the climate of geopolitical and economic tensions with the US administration of Donald Trump.
"The agreements we have concluded in Mexico City are a true geopolitical declaration, a demonstration of our commitment to fair trade, shared prosperity, sustainability, and rules-based cooperation," stated the President of the European Council, António Costa. Together with the President of the European Commission, Ursula von der Leyen, he traveled to the Mexican capital to sign the texts with the President of Mexico, Claudia Sheinbaum.
After the signing, the European Commissioner and trade negotiator, Maros Sefcovic, emphasized that "at a time of growing global uncertainty, the EU and Mexico are betting on openness, collaboration, and ambition"; and he remarked that the updating of the trade framework will strengthen the resilience of supply chains, open new avenues for companies and investors, and bring the economies of both partners even closer.
Sefcovic particularly welcomed the inclusion of "greater cooperation on critical minerals, given that Mexico is a leading supplier of several essential raw materials."
Since 2000, the European Union and Mexico have had a Global Agreement that governs their commercial and political ties. However, adapting this framework to new geopolitical realities and tensions has required a decade of negotiation, which now culminates with the signing of two new instruments: an association agreement and a strictly commercial agreement.
The association agreement will need to be ratified by all national parliaments for its entry into force, while the commercial agreement, which falls under the exclusive competence of the EU within the 27 member states, only requires the backing of the European Parliament and the Council.
In the quarter-century that has passed since the first global agreement was launched, the exchange of goods between the EU and Mexico has quadrupled. Currently, more than 43,000 European companies sell their products in the Mexican market, mostly SMEs, and more than 11,000 EU companies maintain operations in the Latin American country.
The new partnership framework covers a wide range of areas, such as security and justice, sustainable development and the fight against climate change, digital transformation and the protection of Human Rights. Both parties commit to reaffirming the defense of shared values such as the rule of law, multilateralism and the safeguarding of fundamental rights.
In this context, the EU and Mexico plan to establish a regular high-level dialogue on Human Rights, security and justice, as well as on strategies to prevent, combat and sanction corruption.
Regarding the trade agreement, the goal is to "significantly boost" reciprocal market access by eliminating most of the still-existing tariffs, expanding opportunities in public procurement markets, and opening up new spaces for investment and services.
The pact will eliminate the high tariffs that still weigh on key EU exports, especially agri-food products, and will improve the framework for sectors such as machinery, pharmaceuticals, and transport equipment.
The agreement will also safeguard the protection of hundreds of European geographical indications, in order to preserve emblematic regional food and beverage products in Mexico. Specifically, the Latin American country will recognize and protect 232 spirits and another 336 European Geographical Indications for wines, beers, and foodstuffs.
The new texts incorporate legally binding commitments in areas such as labor rights, environmental protection, the fight against climate change, and responsible business conduct. Likewise, they reflect the shared will to promote economic empowerment and women's rights, and establish a dispute settlement mechanism to ensure the effective fulfillment of these obligations.