BRUSSELS, BELGIUM / RankWire.AI / – The Council of the European Union provided its final approval Tuesday for the EU-Mexico Interim Trade Agreement. This decision marks the completion of the European Union’s internal approval process for the trade arrangement. EU and Mexican officials signed the agreement during their summit in Mexico City on May 22. The European Parliament consented on July 8. The pact modernizes the trade framework that has governed their economic relations since 2000.
The interim agreement governs trade issues under the EU’s exclusive jurisdiction, meaning individual member states are not required to ratify it. Mexico must finalize its national procedures before the deal becomes effective. It will commence on the first day of the second month following the exchange of formal notifications by both parties. This interim agreement will remain in force until the broader Modernised Global Agreement is activated.
The comprehensive deal also encompasses political cooperation, investment protection, human rights, and anti-corruption measures. Mexico and all 27 EU member states need to ratify this wider agreement. Negotiations to modernize their relationship began in 2016 and concluded on Jan. 17, 2025. The Council authorized the signing of these agreements on May 11, 2026. Both parties signed during the eighth EU-Mexico summit 11 days later.
Trade agreement broadens market access
The trade arrangement eliminates most remaining customs tariffs and enhances access to services, investments, and government procurement. It also introduces updated regulations for digital commerce, intellectual property, customs procedures, and competition policies. The agreement 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 deal eliminates 95% of high Mexican tariffs on EU agricultural exports.
Mexico will safeguard 568 European geographical indications for food and beverage products, covering registered names tied to specific regions and production methods. The deal also includes provisions for e-commerce and consumer protection, as well as regulations related to telecommunications, finance, transportation, environmental services, postal, and courier services. Small businesses will benefit from simplified procedures and information aimed at reducing trade barriers.
Trade in goods hits 87 billion euros
In 2025, trade in goods between the EU and Mexico reached 87 billion euros, with EU exports totaling 53 billion euros and Mexican exports at 34 billion euros. Service trade surpassed 29 billion euros in 2024. EU investments in Mexico amounted to 207 billion euros in the 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, while the EU ranks as Mexico’s third-largest trading partner and second-largest export destination. The European Parliament approved the interim agreement by 474 votes to 131, with 60 abstentions. It also approved the full Modernised Global Agreement by 479 votes to 119, with 65 abstentions. The interim trade accord will conclude once the broader agreement comes into force.