EU-Mexico Revitalize Free Trade with Strategic Update

The European Union and Mexico have revived a stalled free trade agreement, aiming to expand market access beyond industrial goods. Addressing Trump-era tariff threats, the agreement seeks new EU partnerships, covering services, government procurement, investment, and farm products. Tariff-free trade includes Mexican chicken and European dairy, with quotas applied.

The European Union and Mexico have rejuvenated a stalled free trade agreement, aiming to fortify economic ties just as Donald Trump returns to the White House, threatening tariffs on both entities.

The modernized deal, initiated back in 2000 and covering industrial goods, now aspires to embrace services, government procurement, and agricultural exchanges, marking a significant shift in strategy.

This update arrives amid EU's efforts to reduce dependency on China, and aligns with new partnerships in South America. However, Mexico's recent energy sector reforms posed delays, necessitating revisions that impact beef and ethanol exports and facilitate EU's electric vehicle trade.

(With inputs from agencies.)