The European Union and Mexico signed a deal on Friday to reduce tariffs on each other’s goods, as both seek to reduce their reliance on U.S. trade.
Mexico is trying to preserve its three-way free trade agreement with the United States and Canada, which is crucial to all three economies, and expand the scope of an agreement that dates back to 2000.
The EU is Mexico’s third largest trading partner, far behind the United States and China.
Sheinbaum stressed the importance of “opening up other horizons” as both Mexico and the European Union grapple with U.S. President Donald Trump’s tariff offensive.
Scheinbaum and European Commission President Ursula von der Leyen signed the updated deal on the sidelines of the eighth EU-Mexico summit, removing most remaining trade and investment barriers.
It boosts trade in auto parts, an industry particularly affected by Trump’s tariffs.
-“Same Goal”-
Mexico also agreed to recognize hundreds of food and drink products from specific EU regions, such as Parma ham and Roquefort cheese.
The deal would reduce tariffs on more products and give duty-free access to pasta, chocolate, potatoes, canned peaches, eggs and certain poultry products.
“Mexico wants to be less dependent on its northern neighbor, but also on supply chains in Asia, or rather China, and in Europe we are pursuing the same goals,” an EU official told AFP on condition of anonymity.
During a visit to Mexico City on Thursday, EU foreign policy chief Caja Callas said the deal would create new opportunities for “both economies to compete globally” and continue the momentum of the past decade, which has seen EU trade with Mexico grow by 75%.
Earlier this week, the EU ended a trade standoff with Trump by agreeing to implement a deal signed with the United States last year that imposed 15% tariffs on most European goods.
The average U.S. tariff on Mexican goods is a quarter of that on Mexican goods, and many countries avoid the tax entirely under the U.S.-Mexico-Canada Agreement.
Brussels said the update to the agreement would make it easier for “like-minded partners” to export and invest in each other’s markets.
Sergio Contreras, president of Mexico’s Foreign Trade Commercial Council, said the lower tariffs enjoyed by Mexico would benefit the EU.
Mexico, he said, would be a “converging point, a platform where the EU and North America come together.”
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This article was generated from automated news agency feeds without modifications to the text.
