BRUSSELS, BELGIUM / RankWire.AI / – The Council of the European Union approved on Tuesday the EU-Mexico Interim Trade Agreement. This marks the completion of the European Union’s internal ratification process for the trade arrangement. EU and Mexican representatives signed the agreement at their summit in Mexico City on May 22. The European Parliament endorsed it on July 8. The pact modernizes the trade framework in place since 2000, governing their commercial relations.
The interim agreement addresses trade issues under the EU’s exclusive jurisdiction, meaning individual member states are not required to ratify it. Mexico must complete its national procedures before the deal becomes effective. It will enter into force on the first day of the second month following the exchange of formal notifications by both parties. This interim arrangement will remain in effect until the full Modernised Global Agreement is ratified and implemented.
The broader agreement also encompasses political cooperation, investment safeguards, human rights, and anti-corruption measures. All 27 EU member states along with Mexico need to ratify this comprehensive deal. Negotiations to update their relationship began in 2016 and concluded on Jan. 17, 2025. The Council authorized signing the agreements on May 11, 2026. Both sides signed the documents during the eighth EU-Mexico summit 11 days later.
Trade agreement expands market access
The trade arrangement eliminates most remaining tariffs and enhances access to services, investments, and government contracts. It introduces revised rules for digital commerce, intellectual property, customs procedures, and competition policies. The deal also promotes cooperation on critical raw materials and trade facilitation. EU firms will have greater access to Mexican public tenders, including contracts at the state level. The European Commission reports that the agreement removes 95% of high Mexican tariffs on EU agricultural exports.
Mexico will safeguard 568 European geographical indications for food and beverage products, which are registered names associated with specific regions and production techniques. The agreement also addresses online trade, consumer rights, telecommunications, finance, transport, environmental services, postal, and courier services. Small businesses will benefit from simplified procedures and information aimed at reducing trade barriers.
Goods trade hits 87 billion euros
In 2025, trade in goods between the EU and Mexico totaled 87 billion euros. EU exports amounted to 53 billion euros, while Mexico exported 34 billion euros. Trade in services surpassed 29 billion euros in 2024. EU investments in Mexico reached 207 billion euros that same year. Approximately 45,000 EU companies export to Mexico, most of which are small or medium-sized enterprises.
Mexico is the EU’s second-largest trading partner in Latin America. Conversely, the EU ranks as Mexico’s third-largest trading partner and second-largest export market. The European Parliament approved the interim agreement with 474 votes in favor, 131 against, and 60 abstentions. It also approved the full Modernised Global Agreement by 479 votes to 119, with 65 abstentions. The interim trade deal will conclude once the broader agreement is ratified and in force.