EU and Mexico seal expanded trade deal to cut tariffs and deepen ties

The European Union and Mexico have signed an expanded trade agreement in Mexico City. The deal, finalised in 2025 but only now formally agreed, covers more areas than the previous pact and aims to boost economic ties between the two regions. The new agreement broadens the existing EU-Mexico trade deal to include services, public procurement, digital trade, investments, and agricultural products. Under the terms, nearly all goods traded between the EU and Mexico will eventually face no tariffs.

Mexican exports like chicken and asparagus will now enter European markets more easily. In return, European milk powder, cheese, and pork will be sold in Mexico under controlled quotas. Both sides hope the deal will reduce reliance on other trading partners, given concerns over U.S. tariffs, Chinese export restrictions, and instability from the war in Iran. European Commission president Ursula von der Leyen and the EU’s foreign policy chief Kaja Kallas called the agreement a geopolitical signal. The deal also seeks to strengthen supply chains, support climate goals, and create opportunities in clean technologies.

The expanded trade pact is designed to deepen political cooperation while opening new avenues for trade and investment. It will gradually eliminate tariffs on most goods and encourage collaboration in areas like digital commerce and sustainable industries. The agreement reflects efforts by both sides to diversify their economic partnerships.