The European Parliament approved the modernized EU-Mexico trade agreement on July 8, eliminating tariffs on 99% of goods and creating new export conditions for Mexico’s medical device industry, which shipped about US$22 billion abroad in 2025, over 80% of it to the United States. The deal gives manufacturers in Baja California, Chihuahua, and Tamaulipas a path to diversify beyond North America ahead of the 2026 USMCA review, aided by Mexico’s May 2026 entry into the Enterprise Europe Network. Ratification by all 27 EU member states and the Mexican Senate is still required before the agreement enters fully into force.
The European Parliament approved the modernized EU-Mexico trade agreement on July 8, eliminating tariffs on 99% of traded goods and opening a wider path for Mexican exporters seeking to reduce dependence on the United States. Medical devices, Mexico’s leading health-sector export, stand to benefit greatly, since more than 80% of shipments currently go to a single market. The vote clears the way for the Council of the European Union to formally conclude the agreement, which officials expect to enter into force before the end of 2026.
Marcelo Ebrard, Minister of Economy, confirmed the legislative approval while in Washington, D.C. “It is good news for Mexico; we expect to increase agricultural exports,” Ebrard says, adding that the automotive, auto parts, and other industries are also positioned to gain. The Ministry expects the agreement to give Mexican exporters a second major destination beyond North America within the year.
Mexico and the European Union have maintained a free trade relationship since 2000, a period during which bilateral trade quadrupled and Europe became the country’s third-largest trading partner. That framework predated e-commerce, data protection, and current industrial policy priorities, prompting nearly a decade of talks toward a Modernized Global Agreement and an accompanying Interim Trade Agreement. Parliament approved the modernized agreement by 479 votes to 119, with 65 abstentions, and the interim agreement by 474 to 131, with 60 abstentions.
For medical devices, the timing is significant. Mexico exported approximately US$22 billion in devices in 2025, the largest volume in Latin America and among the top six worldwide, according to the Mexican Association of Innovative Medical Device Industries. More than 80% of that total went to the United States, leaving the sector exposed to tariff measures introduced during the current US administration and to uncertainty surrounding the 2026 review of the USMCA.
Companies already manufacturing in Baja California, Chihuahua, and Tamaulipas, including Medtronic, Becton Dickinson, Cardinal Health, Boston Scientific, Abbott, Johnson and Johnson, Philips Healthcare, and Siemens Healthineers, export modest volumes to Europe and could expand shipments as tariffs fall. The association projects up to US$400 million in sector investment through 2030 under Plan México, funding manufacturing expansion, research, and logistics platforms.
Pharmaceutical exporters have a smaller but growing opportunity. Mexico exported US$2,353 million in medicines and pharmaceutical products between January and November 2025, and companies including PiSA Farmaceutica, Laboratorios Silanes, Genomma Lab, Pfizer, Sanofi, Boehringer Ingelheim, and Bayer could gain incentives to serve the European market from Mexican facilities. Industry group COMCE expects the effects to unfold in phases, with agri-food products responding first, automotive and auto parts activity increasing between six and 18 months after signing, and pharmaceuticals and chemicals following further behind. The agreement also creates a first EU-Mexico Sectoral Health Dialogue covering medicines, vaccines, digital health, and pandemic preparedness, coordinated with Mexico’s health regulator and the Pan American Health Organization.
Smaller companies also have a channel into the deal. Mexico joined the Enterprise Europe Network in May, connecting local businesses to more than 3,000 partner organizations across over 60 countries for technology transfer, financing, and market access support. The EEN Mexico Consortium has already signed agreements with the Jalisco Medical Cluster and the Biomedical Engineering Cluster, and is in talks with the National Chamber of the Pharmaceutical Industry.
The Modernized Global Agreement still requires ratification by all 27 EU member states and the Mexican Senate before entering fully into force. The Interim Trade Agreement, covering provisions within the EU’s exclusive competence, will apply once both parties notify each other that domestic procedures are complete, a step officials expect within months.