Mexico and the European Union have signed a long-awaited free trade agreement, marking a significant step in strengthening economic ties and expanding market access between the two regions.
The updated accord builds on the original Mexico-EU trade agreement established in 2000, which primarily covered industrial goods. The new framework broadens cooperation to include services, government procurement, digital trade, investment, and agricultural products.
The agreement was signed in Mexico City by Mexican President Claudia Sheinbaum, European Commission President Ursula von der Leyen, and European Council President Antonio Costa during the first summit between the parties in more than a decade.
Speaking after the signing ceremony, Costa described the deal as an important milestone that enhances preparedness for future economic challenges. Sheinbaum highlighted the opportunities it creates for sectors such as pharmaceuticals, agriculture, technology development, and electric mobility, while also supporting increased trade between both regions.
The agreement comes as Mexico and the European Union continue efforts to diversify trade relationships and expand export markets. According to Mexico’s Economy Ministry, the pact could increase Mexican exports to the EU from approximately $24 billion annually to $36 billion by 2030. Meanwhile, the EU currently exports around $65 billion worth of goods to Mexico each year.
Trade between Mexico and the EU has grown by 75% over the past decade, with key sectors including transport equipment, machinery, chemicals, fuels, and mining products. The new agreement will provide duty-free access for nearly all goods, including agricultural products such as Mexican chicken and asparagus, as well as European milk powder, cheese, and pork, subject to certain quotas.
Although negotiators reached broad agreement on the updated framework in 2025, the formal signing took more than a year. During that period, the EU advanced trade discussions and agreements with several other international partners, while Mexico continued to focus on broader regional trade priorities.
The agreement will now be submitted to the European Parliament for ratification, where it is widely expected to receive approval in the coming months.
Von der Leyen said the agreement is designed to support economic growth, job creation, and value generation on both sides of the Atlantic, while further strengthening the long-term partnership between Mexico and the European Union.
