BRUSSELS, BELGIUM / RankWire.AI / – The Council of the European Union approved the EU-Mexico Interim Trade Agreement on Tuesday. This decision marks the completion of the EU’s internal approval process for the trade agreement. The pact was signed by EU and Mexican officials during their summit in Mexico City on May 22. The European Parliament authorized it on July 8. The agreement updates the trade framework that has governed economic relations since 2000.
The interim arrangement pertains to trade issues under the EU’s exclusive jurisdiction. It does not require ratification by individual member states. Mexico needs to finalize its domestic ratification procedures before the agreement can become effective. It will take effect on the first day of the second month following the exchange of formal notices by both parties. Until the full Modernised Global Agreement is ratified and implemented, the interim pact will remain in force.
The broader agreement also encompasses political cooperation, investment safeguards, human rights, and anti-corruption initiatives. All 27 EU member states and Mexico must ratify this comprehensive accord. Negotiations to modernize the bilateral relationship started in 2016 and concluded on Jan. 17, 2025. The Council authorized signing the agreements on May 11, 2026, and both sides signed them during the eighth EU-Mexico summit 11 days later.
Trade agreement broadens market access
The trade arrangement eliminates most remaining tariffs and expands access to services, investments, and public procurement. It also introduces updated regulations for digital trade, intellectual property rights, customs procedures, and competition policies. The deal includes cooperation on critical raw materials and efforts to facilitate trade. EU firms will have improved access to Mexican public tenders, including state-level contracts. The European Commission states that this agreement removes 95% of high Mexican tariffs on EU agricultural exports.
Mexico will safeguard 568 European geographical indications for food and beverages, protecting names linked to specific regions and production methods. The pact also features provisions for e-commerce and consumer rights. It addresses telecommunications, financial services, transportation, environmental services, postal and courier services. Small enterprises will benefit from simplified procedures and information aimed at reducing trade obstacles.
Trade in goods hits 87 billion euros
In 2025, trade in goods between the EU and Mexico reached 87 billion euros. EU exports amounted to 53 billion euros, while Mexican exports totaled 34 billion euros. Trade in services surpassed 29 billion euros in 2024. EU investments in Mexico stood at 207 billion euros that same year. Approximately 45,000 EU businesses 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 endorsed the full Modernised Global Agreement with 479 votes for, 119 against, and 65 abstentions. The interim trade arrangement will conclude once the broader agreement comes into force.