“This landmark deal proves that open, rules-based trade can deliver for our prosperity and economic security,” European Commission President Ursula von der Leyen said. The bilateral trading relationship is worth more than €100 billion a year — four-fifths in the form of goods and one-fifth in services.
Echoing the apprehension around Trump’s tariff ideas, the German car lobby VDA said “the conclusion of a modernization of the agreement is also an important political signal —especially in times of increasing protectionism.” Cars and spare parts are one of the largest export categories from Europe to Mexico. In 2022, Germany alone sold €2.5 billion worth of these products to Mexican importers.
EU car exporters will be at an advantage over their Mexican counterparts in this deal, because they will qualify for certain lower tariffs in Mexico under less strict rules than the other way around.
Win for EU food exporters
The EU executive also trumpeted export opportunites for agri-food exporters, with the deal removing tariffs that had been as high as 100 percent on exports of products such as cheese, pork, pasta, apples, jams, and marmalades — as well as chocolate and wine.
Protection of geographical indications — a kind of trademark brand for premium produce — will be expanded to 568 products. And export procedures will be simplified, the Commission said, outlining details of the agreement.
The original deal between the two sides dates back to 2000, meaning it was due for a revamp. The EU also redid its agreement with Chile in a similar manner two years ago. A senior EU official admitted the latest deal was less ambitious than at a previous stage in the talks in 2020.
