Mexico and Germany rank as each other’s top trading partners within Latin America and the European Union, respectively. Their economic relationship continues to deepen and evolve. Anchored by robust industries in automotive, machinery, and technology, both nations are strategically positioned to harness expanding opportunities in investment, innovation, and sustainable development.
The bilateral relationship between Mexico and Germany is underpinned by a series of key agreements that facilitate trade, investment, education, and scientific collaboration. Since 2000, the Global Agreement Between Mexico and the European Union, where Germany plays a pivotal role, has liberalized trade and strengthened political dialogue, resulting in a more than fourfold increase in bilateral trade during its first two decades. In January 2025, the European Union announced the successful conclusion of negotiations to modernize the Global Agreement with Mexico. This updated framework is designed to deepen and broaden political cooperation, trade, and investment, creating new economic opportunities for both parties while promoting shared values, including progressive commitments to sustainable development. Following final legal review, both the European Union and Mexico will proceed with their respective approval and ratification processes.
Complementing this, bilateral agreements such as the Double Taxation Agreement (2009), the Investment Protection Treaty, and the Air Transport Agreement (1970) collectively enhance investment security and connectivity between Mexico and Germany.
Cooperation is also maintained through longstanding agreements, including the Scientific Cooperation Agreement and the Cultural Agreement, which support academic exchanges and joint research initiatives. More recently, a Dual Vocational Education Agreement, modeled on Germany’s apprenticeship system, highlights a shared commitment to workforce development and technical training. In April 2025, Mexico and Germany also held their regular Intergovernmental Consultations focusing on sustainable development, environmental protection, and climate change. These discussions reaffirmed their partnership on climate action, energy transition, sustainable urban development, biodiversity conservation, and economic growth, aligning with global frameworks such as the Paris Agreement and the 2030 Sustainable Development Goals.
In 2024, Mexico’s primary export to Germany was automobiles and motor vehicles designed mainly for passenger transport, totaling US$3.69 billion. Leading states for total exports included Puebla (US$3.17 billion), Mexico City (US$895 million), and San Luis Potosi (US$498 million). Beyond passenger vehicles, Mexico also supplied data processing machines, electric conductors, medical instruments, and parts for turbojets and turboprops, underscoring its growing role as a key supplier of electronics and industrial equipment to Germany.
Germany’s top export to Mexico in 2024 was parts and accessories for motor vehicles, amounting to US$2.53 billion. Other significant exports included machinery for diverse industrial applications, medical devices, pharmaceuticals, measuring instruments, and chemicals. Mexico City was the leading recipient of total imports with US$5.63 billion, followed by Puebla (US$2.8 billion) and the State of Mexico (US$1.91 billion).
In total, Germany accounted for 1.25% of Mexico’s exports in 2024, valued at US$7.69 billion. Imports from Germany represented 3.42% of Mexico’s total imports, totaling US$21.36 billion, resulting in a trade deficit of US$13.67 billion for Mexico.
From January to December 2024, German Foreign Direct Investment (FDI) in Mexico reached US$3.79 billion. Mexico City attracted the largest share with US$1.44 billion, followed by Puebla (US$1.05 billion) and San Luis Potosi (US$452 million). Of the total investment, US$2.01 billion was reinvested earnings, US$1.7 billion came from intercompany accounts, and US$60.9 million represented new investments.
Since 1999, cumulative German FDI in Mexico has reached US$40.09 billion. Puebla has been the top historical recipient (US$8.1 billion), followed by Mexico City (US$7.01 billion) and the State of Mexico (US$4.64 billion).
Monthly Trade Snapshot: April 2025
In April 2025, Mexico’s exports to Germany totaled US$542 million, while imports amounted to US$1.69 billion, leading to a trade deficit of US$1.14 billion for the month in favor of Germany. The most significant Mexican export to Germany was data processing machines, valued at US$34.5 million. Mexico City led these exports with US$82 million, followed by Jalisco (US$26.3 million) and Chihuahua (US$23.4 million).
The leading import from Germany was vehicle parts and accessories, worth US$162 million. Mexico City was again the top importer with US$404 million, followed by Puebla (US$225 million) and the State of Mexico (US$180 million).
Migration and Remittances
Remittance flows between Mexico and Germany remain modest. In the first quarter of 2025, Mexico received US$4.23 million from Germany, while Germany received US$731,000 from Mexico. In 2020, 3,996 German nationals relocated to Mexico, with Puebla (927), Mexico City (727), and San Luis Potosi (578) as the top destination states. The main reasons for migration from Germany to Mexico in recent years have been family-related, accounting for 1,318 individuals, and economic factors, involving 1,054 people.
Cultural and Educational Cooperation
Mexico is a strategic partner in Germany’s cultural and educational cooperation, with the Goethe-Institut serving as a key institution in this collaboration. Currently, five German international schools in Mexico educate approximately 5,000 students, while numerous additional schools participate in the Goethe-Institut’s Schools: Partners for the Future program. Interest in the German language remains strong, with around 86,000 individuals actively studying it across Mexico.
Since 2001, the German Academic Exchange Service (DAAD) has maintained an office in Mexico City to facilitate academic exchange. Approximately 3,600 Mexican students are enrolled in German universities, supported by nearly 500 formal cooperation agreements between higher education institutions in both countries.
Germany’s economy is expected to remain largely stagnant in 2025, following slight contractions in recent years. Trade tensions and weaker demand, particularly from China and the United States, will continue to weigh on exports. However, private consumption is projected to grow modestly as purchasing power improves and interest rates decline. Investment activity may stay subdued due to tighter financing conditions and cautious business sentiment.
Growth is forecast to pick up in 2026, reaching 1.1%, supported by stronger domestic demand, lower inflation, and a gradual rebound in investment and construction activity. Public investment, particularly in infrastructure and defense, is expected to increase, although implementation remains pending.
The economy contracted by 0.2% in 2024, with exports falling 1.7% in the second half of the year due to declining competitiveness in key markets. Weak consumer confidence and higher savings also constrained private spending. These factors, along with ongoing global uncertainties and tariff risks, are likely to dampen consumption, investment, and trade performance through 2025–26.
Exports are projected to decline by 1.9% in 2025, with a limited recovery expected the following year. The current account surplus is forecast to narrow to 5.1% in both 2025 and 2026, as falling exports are partly offset by lower import costs. Meanwhile, Germany’s government deficit will remain elevated, with public debt approaching 65% of GDP by 2026.
The United States and the European Union have reached a trade agreement that averts a broader economic conflict, following intense negotiations between President Donald Trump and European Commission President Ursula von der Leyen in Scotland.
The deal imposes a 15% US tariff on all EU goods, half of what Trump had initially threatened. In return, the EU will reduce tariffs on select US exports and increase investment in the United States, especially in energy and military goods. Von der Leyen called the agreement a “framework” with details still to be negotiated. German Chancellor Friedrich Merz welcomed the agreement, emphasizing that a trade war would have been particularly damaging for Germany and highlighting the importance of stable, predictable trade ties.