The EU and Mexico have signed off on a trade agreement that will remove import duties on a range of products, including meat, dairy, confectionery and wine.
Annual food and drink exports from the EU to the South American country amounted to €2.5bn ($2.9bn) last year, making Mexico the bloc’s second-largest importer of its agri-food products in Latin America.
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In turn, the EU is Mexico’s second-largest foreign investor and its third-largest trading partner, according to a statement from the European Commission (EC) on Friday (22 May) following the finalisation of the so-called Modernised Global Agreement (MGA) and interim Trade Agreement (iTA).
The signing of the agreement has been in the works since January 2025, when the EU and Mexico concluded “political” negotiations on a modernised trade deal to reduce tariffs on a host of goods. However, talks and negotiations have been going on since 2016.
On the EU side, the MGA now needs to be ratified by the bloc’s member states, while the iTA requires the consent of the European Parliament and European Council.
Mexico, meanwhile, will follow its own “procedures” to ratify the agreements, the EC said.
EC President von der Leyen said: “Today’s modernised agreements set out our shared vision of the future and will deliver many benefits for both sides. We will boost trade and investment to support jobs and growth, and cooperate across a range of policy areas.
“Together we will shape a better future for our citizens and the planet, by finding common ground on upholding global institutions, driving clean growth, and promoting human rights and gender equality.”
Zero tariffs on EU exports to Mexico will be applied on goods such as dairy products, poultry, pork, confectionery, pasta and wine.
European geographical indications will also be protected such as Parma ham, Rioja wine and Roquefort cheese.
EU shipments of dairy to Mexico amounted to €175m last year, while vegetables were worth €253m and wine and wine-based products €211m, according to supplementary data from the EC.
Poultry duties into Mexico of up to 100% will now turn to zero, while pork tariffs of up to 45% will also be eliminated, along with the 20% on beef up to 30,000 tonnes.
Rates on chocolate, confectionery and pasta – currently charged at up to 20% – will be removed. Mexico also levies up to a 20% duty on EU yogurt which will now become zero, along with blue cheeses. They are currently taxed at up to 45%, as are other types of cheeses, which will now enjoy zero rates for a maximum quota of 20,000 tonnes.
The maximum tariff of 100% on EU wines will also be removed.
The EC said following the conclusion of last week’s summit that Mexico will protect 232 spirits and an additional 336 European geographical indications on wines, beers and food.
In a statement on social media, EU spirits trade body group SpiritsEurope welcomed the signing of the agreement.
It said the deal will “Extend the protection of spirits Geographical Indication” and “Improve cooperation on certification and labelling through a dedicated wine and spirits annex”.
It added: “We now call on both parties to complete the ratification process as soon as possible to provide certainty for businesses, support exports, and reinforce open, rules-based trade.”
“Mexico is the number one market in Latin America for EU spirits exports, and a key partner for the future of our sector.
“We have more leverage when we join forces and the summit marks an important milestone for EU-Mexico relations,” the Commission said.
“At a moment when the international order is not [in] good shape, the agreements we sign this week are about far more than trade; they are a geopolitical statement. Europe and Mexico can’t end global uncertainty, but together, we can reduce its impact and shape a future of our own.”
The Mexican government added in its own statement: “The modernised global agreement will support the diversification of Mexico’s international relations. It will eliminate tariffs on 86% of agricultural goods, protect iconic Mexican products through geographical indications, and ease specific rules of origin, particularly in the automotive, aerospace, and chemicals sectors.”
Alongside the trade agreement, the two sides signed a joint declaration on a circular economy “aimed at addressing the triple planetary crisis of climate change, biodiversity loss and pollution, including plastic pollution”.
The talks also concluded the Global Gateway Investment Agenda partnership where the EU will support more than €5bn of investment in areas such as sustainable transport, health and pharmaceuticals, water and sanitation, sustainable agriculture, forests and biodiversity.
