7 July 2026 07:39 UTC · European Commission · EU Commission Press Release · Source · Email X Link

European Commission says modernised EU-Mexico trade agreement deepens ties

Key points

Almost all EU-Mexico trade in goods will be tariff-free
Agreement contains legally binding sustainability and labour commitments (TSD)

TL;DR

Modernised agreement will make almost all EU-Mexico trade in goods tariff-free and protects 569 Geographical Indications.
Agreement expands services market access, digital trade, public procurement, SME facilitation, IP rules, and cooperation on critical raw materials.
Agreement includes legally binding commitments on labour rights, environmental protection, climate change and responsible business conduct (TSD Chapter).
Bilateral trade in goods has risen 330% over 25 years; the EU is Mexico's third largest trading partner and second largest investor after the United States.

Original text

European Commission - Speech [Check Against Delivery] Remarks by Commissioner Šefčovič at the European Parliament plenary debate on EU-Mexico relations Strasbourg, 7 July 2026 Dear President, Honorable Members. Trade is fundamental to the European Union economy. More than 700,000 EU companies export beyond our borders, supporting over 30 million jobs across the Union. Not least, thanks to our 45 Free Trade Agreements (FTAs) with 81 countries, covering more than half of our trade. Yet the context for EU trade policy has become increasingly unpredictable and volatile. We are witnessing deliberate disruptions of global trade and the weaponisation of dependencies. In such turbulent times, we need to work even more closely with our partners, and keep markets open – as well as open new markets – for our exports, and diversify sources of imports. During this Commission's mandate, we have struck landmark deals with Mexico, Mercosur, Indonesia, India, Australia, and Eastern and Southern African (ESA) countries. We are also continuing to negotiate with the Philippines, Thailand, Malaysia, and the United Arab Emirates. Against this background, let me turn now to the subject of today's debate: EU-Mexico trade relations. The commercial ties between the EU and Mexico are already strong. We have been trading on preferential terms since 2000, when the trade pillar of the EU-Mexico Global Agreement entered into force. That has seen bilateral trade in goods increase by 330% in the last 25 years, while trade in services has expanded significantly - the EU is now Mexico's third largest trading partner. And the EU has become a major investor in Mexico - the second largest after the U.S. But in the past two decades, the world has changed. Which is why we needed a modernised agreement that takes EU-Mexico relations to a new level. Establishing a modern and ambitious framework for bilateral trade and investment. It will make almost all EU-Mexico trade in goods tariff-free. This is especially important for EU agri-food exporters, as duties will be removed on nearly all key products. While Europe's flagship food and drink products are protected under 569 Geographical Indications. The agreement will support growth in EU services exports in sectors such as financial services, transport, and e-commerce. It will reduce non-tariff barriers and help ensure a level playing field, including through stronger provisions on intellectual property rights. It will strengthen cooperation on critical raw materials, and support the competitiveness of European industry. It will promote the digital transition on both sides through a dedicated chapter on digital trade. It will make it easier for small- and medium-sized enterprises to trade and invest. It will expand opportunities for EU firms in Mexico's public procurement market. And it will help address practical difficulties faced by our investors in Mexico. As you have underlined in the Interim Report accompanying this debate, the EU and Mexico are like- minded, long-standing partners. This agreement will deepen that partnership and strengthen our ability to work together on global challenges. It also underlines our commitment to fair trade, shared prosperity, sustainability, and rules-based cooperation. And it promotes sustainable development through legally binding commitments on labour rights, environmental protection, climate change and responsible business conduct (TSD Chapter). As well as on trade and gender equality and women's economic empowerment. With the modernised agreement, we are better equipped to seize new opportunities and address common challenges. Both bilaterally and at the multilateral level. Honorable Members. This debate is an opportunity to send a clear message — to Europeans and to our partners – that Europe believes in fair trade, strong alliances, and strategic openness. And that when it comes to Mexico, we choose partnership and mutal benefits. So let us back this agreement. Thank you. SPEECH/26/1543

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