EU-Mexico Trade Deal Rebooted Amid Tensions with U.S.

The European Union and Mexico have revived efforts to upgrade their free trade agreement, aiming to expand it beyond industrial goods to include services, government procurement, investment, and agriculture. The upgraded deal aims to reduce tariffs on a variety of products and enhance reciprocal access to government contracts.

The European Union and Mexico have rekindled talks to upgrade their free trade agreement, just as U.S. President-elect Donald Trump threatens both parties with tariffs. The current accord, established in 2000, primarily covers industrial goods.

Efforts began in 2018 to expand it, reaching a significant milestone in 2020 to include reciprocal market access to public contracts, aiming for duty-free trade in practically all goods. This would benefit Mexican farm products and European dairy.

The deal includes Mexican tariff cuts on European cheeses like gorgonzola and increased EU pork exports. It also allows cross-bidding for government contracts, all while recognizing geographical indications on specific food and drink items, a key EU demand.

(With inputs from agencies.)