Mexico, EU to lower tariffs in bid to grow non-US trade
By AFP
May 22, 2026
EU chief Ursula von der Leyen will sign an expanded trade deal with Mexico aimed at reducing both countries'dependence on trade with the United States - Copyright AFP RONALDO SCHEMIDT
Arturo ILIZALITURRI
The European Union and Mexico will on Friday sign a deal reducing tariffs on each other’s goods as both seek to lessen their dependence on trade with the United States.
The expansion of an accord dating to 2000 comes as Mexico fights hard to preserve a three-way free trade agreement with the United States and Canada, which is crucial to all three economies.
The EU is Mexico’s third-largest trading partner, lagging far behind the United States and China.
Mexican President Claudia Sheinbaum has stressed the importance of “opening other horizons” at a time when both Mexico and the European Union are grappling with US President Donald Trump’s tariff offensive.
The updated agreement to be signed by Sheinbaum and European Commission President Ursula von der Leyen during the eighth EU-Mexico Summit removes most remaining barriers to trade and investment.
It facilitates trade in auto parts, a sector particularly affected by Trump’s tariffs.
“Mexico wants to reduce its dependence on its northern neighbor, but also on Asian, or rather, Chinese, supply chains, and in Europe we are pursuing the same objectives,” an EU official told AFP on condition of anonymity.
On a visit Thursday to Mexico City, the EU’s foreign policy chief Kaja Kallas, said the deal would create new opportunities for “both economies to compete globally” and build on the momentum of the past decade, which has seen a 75-percent leap in EU-Mexican trade.
Earlier this week, the European Union moved to end a trade standoff with Trump by agreeing to implement a deal signed last year with the United States, which sets tariffs on most European goods at 15 percent.
Average US tariffs on Mexican goods are a quarter of that — with many avoiding levies altogether under the USMCA (United States, Mexico, Canada) agreement.
The lower tariffs enjoyed by Mexico will benefit the European Union, according to Sergio Contreras, president of the Mexican Business Council for Foreign Trade.
Mexico will be “the point of convergence, the platform for the European Union and North America to come together,” he said.
By AFP
May 22, 2026
EU chief Ursula von der Leyen will sign an expanded trade deal with Mexico aimed at reducing both countries'dependence on trade with the United States - Copyright AFP RONALDO SCHEMIDT
Arturo ILIZALITURRI
The European Union and Mexico will on Friday sign a deal reducing tariffs on each other’s goods as both seek to lessen their dependence on trade with the United States.
The expansion of an accord dating to 2000 comes as Mexico fights hard to preserve a three-way free trade agreement with the United States and Canada, which is crucial to all three economies.
The EU is Mexico’s third-largest trading partner, lagging far behind the United States and China.
Mexican President Claudia Sheinbaum has stressed the importance of “opening other horizons” at a time when both Mexico and the European Union are grappling with US President Donald Trump’s tariff offensive.
The updated agreement to be signed by Sheinbaum and European Commission President Ursula von der Leyen during the eighth EU-Mexico Summit removes most remaining barriers to trade and investment.
It facilitates trade in auto parts, a sector particularly affected by Trump’s tariffs.
“Mexico wants to reduce its dependence on its northern neighbor, but also on Asian, or rather, Chinese, supply chains, and in Europe we are pursuing the same objectives,” an EU official told AFP on condition of anonymity.
On a visit Thursday to Mexico City, the EU’s foreign policy chief Kaja Kallas, said the deal would create new opportunities for “both economies to compete globally” and build on the momentum of the past decade, which has seen a 75-percent leap in EU-Mexican trade.
Earlier this week, the European Union moved to end a trade standoff with Trump by agreeing to implement a deal signed last year with the United States, which sets tariffs on most European goods at 15 percent.
Average US tariffs on Mexican goods are a quarter of that — with many avoiding levies altogether under the USMCA (United States, Mexico, Canada) agreement.
The lower tariffs enjoyed by Mexico will benefit the European Union, according to Sergio Contreras, president of the Mexican Business Council for Foreign Trade.
Mexico will be “the point of convergence, the platform for the European Union and North America to come together,” he said.
By AFP
May 22, 2026
Mexico and the European Union have both been hit by US President Donald Trump's steep tariffs - Copyright AFP/File Guillermo Arias
The EU and Mexico agreed to expand their trade ties Friday against the backdrop of a more protectionist United States under President Donald Trump.
Trade between Mexico and the EU is worth some 100 billion euros ($116 billion), but Brussels says the updated trade agreement will boost this further.
The EU is Mexico’s third largest trading partner, while Mexico is the bloc’s second biggest trading partner in Latin America after Brazil.
Brussels said the update to the pact would make it easier for the “likeminded partners” to export and invest in each other’s markets.
– Food and drink –
The EU said European farmers would benefit since Mexico is a net food importer, and there are limits on how much Mexico can export sensitive goods.
For example, the EU will limit imports of Mexican beef, with a quota of 5,000 tonnes of the meat allowed in with a preferential tariff rate of 7.5 percent.
Brussels wants to avoid upsetting farmers after a fierce fight over the trade agreement between the EU and the South American Mercosur bloc.
Mexico also agreed to recognise hundreds of food and drink products from specific regions of the EU, such as Parma ham and Roquefort cheese.
And it will lower tariffs on more products, and give duty-free access to pasta, chocolate, potatoes, canned peaches, eggs and certain poultry products.
In exchange, the EU will give access to Mexico to the bloc’s market for products like coffee, fruits, chocolates and agave syrup.
– Critical raw materials –
For Brussels, the update means European companies will have greater access to the Mexican market and can bid for more public contracts.
The agreement also means EU firms will find it easier to export machinery, pharmaceuticals and transport equipment, Brussels said.
The EU hopes the deal will mean better supply of critical raw materials from Mexico, already a top supplier to the bloc. The deal bans EU importers from paying a different price to Mexican buyers for critical raw materials.
The EU has been scrambling to diversify its supply of critical raw materials, as it seeks to cut its dependence on the elements from China.
And the agreement will facilitate European firms to ship auto parts to Mexico through the recognition of European certifications and international standards.
But Brussels insisted it would not allow Chinese manufacturers to use Mexico to export vehicles produced in China to Europe.
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