The European Union and Mexico are moving to upgrade their trade relationship at a time when international markets are being tested by tariffs, geopolitical conflicts and intense upheaval in supply chains.

According to European Commission President Orsula von der Leyen, the new agreement creates a more stable framework for the two sides to work together to protect trade, increase investment and secure strategic raw materials.

As she points out, the relationship between the EU and Mexico goes back decades, and the original 1997 agreement was one of the most important trade agreements ever signed by the European Union. This cooperation has led to a fourfold increase in trade between the two sides.

She also referred to the new agreement she signed with Mexican President Claudia Sheinbaum, stressing that today’s circumstances call for closer cooperation and faster decisions.

“The European Union and Mexico have been reliable partners for many decades.

“At a time of increasing geopolitical tensions, it is essential to seize every opportunity to strengthen and deepen our partnership.”

Investment, Tariffs and New Markets

The new agreement places particular emphasis on strengthening trade and investment. The elimination of a large part of the tariffs is expected to benefit both European and Mexican businesses, with particular reference to the agri-food sector.

Mexico is a huge and growing market with more than 130 million consumers, according to the Commission President. The elimination of 99% of tariffs is expected to save around €100 million per year for the European agri-food sector. At the same time, it will open up new opportunities for producers on both sides.

Particular importance is also attached to the protection of traditional European products. The agreement provides protection against counterfeiting for hundreds of products, including Greek feta and Spanish Rioja wines.

In parallel, Europe is planning €5 billion of new investment in Mexico in sectors such as clean energy, rail infrastructure, green ports, pharmaceuticals and the circular economy. Von der Leyen underlines that these projects will create new jobs and strengthen the productive base of both economies.

Critical raw materials and the geopolitical message

Special emphasis is also placed on critical raw materials, which are now considered to be of strategic importance for the green and digital transition. Mexico is a major supplier of materials such as fluorite, copper and zinc, used in power grids, batteries and clean energy technologies.

The renewed agreement removes tariffs and restrictions in these sectors, with the aim of stabilising supply chains at a time when raw materials are increasingly becoming a tool of geopolitical pressure.

The President of the European Commission also notes that Europe and Mexico share common values and choose cooperation over fragmentation.

“At a time when fragmentation is expanding, we choose open communication and cooperation.”

In conclusion, von der Leyen notes that 2026 is shaping up to be a pivotal year for Europe’s international trade strategy, as the E.U.The EU has already entered into new agreements with India, Australia and the Mercosur region. As he stresses, the goal is a stronger and safer Europe with greater influence on the international stage.

First published by Protothema

.