The European Parliament voted Wednesday to approve the modernization of the Global Agreement and the accompanying Interim Trade Agreement between the European Union and Mexico. The legislative approval updates a trade relationship that has been in place since 2000, eliminating tariffs on 99% of traded goods and establishing a framework to expand market access across the agricultural, automotive, and advanced manufacturing sectors.
The European Parliament approved the modernized agreement by 479 votes to 119, with 65 abstentions. According to the European Parliament, the most ambitious implementation scenario could increase EU exports of goods and services to Mexico by up to 75%, while saving European companies approximately €100 million (US$114.36 million) annually in customs duties.
Mexican Economy Minister Marcelo Ebrard, speaking from Washington, D.C., confirmed the legislative approval and outlined the expected implementation timeline. “The modernization of the treaty we have with them has already been approved by the European Union. It is good news for Mexico; we expect to increase agricultural exports, but also exports from the automotive industry, auto parts, and other sectors,” Ebrard said.
He added that the Mexican government expects the agreement to enter into force before the end of 2026.
The modernized framework will allow virtually all Mexican exports to enter the European market under preferential terms. The sectors expected to benefit most include agribusiness, automotive, auto parts, medical devices, chemicals, pharmaceuticals, advanced manufacturing, and products protected by geographical indications, such as designated-origin beverages.
In return, the agreement removes the remaining tariffs on European agricultural products entering Mexico. Mexican tariffs on products such as pork and cheese currently reach as high as 45%. The updated agreement also grants legal protection in Mexico to 568 European geographical indications, preventing the commercialization of unauthorized imitations of regional European food and beverage products.
The agreement also includes provisions covering digital trade, regulatory cooperation, small and medium-sized enterprises (SMEs), investment, and public procurement. Additional chapters address cybersecurity, climate change mitigation, gender equality, healthcare, human rights, judicial cooperation, and sustainable development.
Mexican Foreign Minister Roberto Velasco described the vote as “great news” that “will strengthen the trade, investment, and dialogue that unite us,” attributing the progress to coordination under President Claudia Sheinbaum.
Esteban Moctezuma, Mexico’s ambassador to Belgium, the European Union, and Luxembourg, said the broad legislative support marks a new phase in relations with the 27-member bloc. “We must be very happy and, above all, very aware that this is just the beginning of a relationship with Europe to bring us closer politically, commercially, and culturally,” Moctezuma said.
The European Union is Mexico’s third-largest trading partner and second-largest source of foreign direct investment. Pedro Haces, vice president of the Mexico-European Union Joint Parliamentary Committee in the Chamber of Deputies, said bilateral trade in goods exceeds €87 billion (US$99.49 billion) annually, while accumulated European investment in Mexico totals more than €207 billion (US$236.73 billion).
“The approval of this agreement represents great news for Mexico,” Haces said. “Today our country has preferential access to two of the most important markets in the world: North America and the European Union. That strategic position provides us with a unique opportunity to continue growing, attract more investment, and generate better opportunities for Mexican workers.”
For the Modernized Global Agreement to fully enter into force, its political and investment chapters must be ratified by the legislatures of all 27 EU member states, as well as by the Mexican Senate.
However, the Interim Trade Agreement will allow the early application of trade provisions that fall under the European Union’s exclusive competence. It will enter into force on the first day of the second month after both parties formally notify one another that they have completed their respective domestic legal procedures.