Mexico and the European Union will finalize a comprehensive trade agreement Friday as both regions work to reduce their economic dependence on the United States and shield themselves from tariffs imposed by the Trump administration.
The agreement builds upon a 2000 trade deal between Mexico and the EU that only covered industrial products. This expanded version includes services, government procurement, digital commerce, investment opportunities and agricultural goods.
The signing ceremony in Mexico City will bring together Mexico’s President Claudia Sheinbaum, European Commission President Ursula von der Leyen and European Council President Antonio Costa for their first summit in more than ten years.
“This summit means more than trade; it’s a geopolitical statement,” said Kaja Kallas, the EU’s foreign policy chief, on Thursday in Mexico City before the signing ceremony.
Both regions are working to expand their export markets beyond the United States.
The European Union faced extensive new tariffs through Trump’s “Liberation Day” duties in April 2025 and developed retaliatory measures, though these were suspended while both sides pursued negotiations. Despite a tariff ceasefire and July agreement that reduced some tensions, U.S. duties on EU products remain higher than previous levels.
Mexico has similarly faced significant U.S. tariffs on car manufacturing, steel and aluminum shipments, with trade relationships between the nations remaining unstable during Trump’s second presidency.
Officials from Mexico’s economy ministry project the agreement could boost Mexican shipments to the EU from approximately $24 billion annually to $36 billion by 2030. The EU currently sends roughly $65 billion worth of products to Mexico each year.
Commerce between Mexico and the EU has grown 75% over the past decade, primarily consisting of transportation equipment, machinery, chemicals, energy products and mining materials.
The updated agreement eliminates tariffs on nearly all products, including agricultural items like Mexican poultry and asparagus alongside European dairy powder, cheese and pork, though some quantity restrictions will apply.
Despite being completed, the enhanced trade agreement has taken more than a year to reach the signing stage. The EU focused on completing a trade deal with the Mercosur South American alliance and finished trade negotiations with Indonesia, India and Australia over the past eight months.
Mexico has been careful about actions that might provoke the Trump administration during delicate discussions to renew the U.S.-Mexico-Canada trade agreement. More than 80% of Mexico’s current exports are shipped to the United States.
The European Parliament will vote on the trade agreement and is expected to approve it within several months.
