On January 17, 2025, the European Union (EU) and Mexico concluded negotiations for the modernization of their Global Agreement, marking a significant milestone in their historic partnership and trade integration. This new trade framework has the following main objectives: (i) to deepen trade integration; (ii) strengthen economic cooperation; (iii) promote sustainable development between both regions; and (iv) expand business opportunities on both sides.
“We have entered a new era in our strategic partnership with Mexico today. Our upgraded agreement shows the EU and Mexico united for freer trade and an open global economy.”
— Kaja Kallas, High Representative for Foreign Affairs and Security Policy/Vice-President of the European Commission.
Likewise, the Agreement aims to accelerate the EU’s integration with Latin America in the current context and amid the uncertainty of a reconfiguration of the global geopolitical order.
The modernized agreement builds on the success of the original 2000 agreement, which has already driven a 302% increase in bilateral trade in goods since its inception. The new agreement seeks to further expand these figures by eliminating tariffs, reducing non-tariff barriers, and creating a level playing field for businesses both European and Mexican.
Among the main benefits of the agreement are the simplification of administrative procedures, access for European companies to public procurement in Mexico, and new systems for foreign investment aimed at simplifying and improving the inflow of foreign capital. Moreover, the agreement replaces the outdated investor-state dispute settlement system with a modern Investment Court System, offering stronger protections for EU investors in Mexico.
The agreement strengthens supply chains for critical raw materials, which are vital for the green and digital transitions. Mexico, a key supplier of fluorspar, zinc, copper, and molybdenum. The agreement also prohibits export monopolies, unjustified government interventions in price setting, and dual pricing practices, ensuring fair trade and investment in raw materials.
The modernization of the EU-Mexico Global Agreement represents a crucial step in the trade relations between both regions, promoting sustainable development, eliminating barriers, and strengthening economic cooperation.
If you have any questions regarding the contents of this Alert, please contact:
Juan Carlos Izaza
Matisse Flores
