The deal, which wipes tariffs from a slew of EU produce, finished foods and beverages for export to Mexico, came ahead of announcements the bloc was relaunching free trade agreement negotiations with Malaysia.
The EU exported over €53bn of goods to Mexico in 2023, with near €29bn coming the other way.
The US imported €137.2bn agri-food products from the EU, from January to July last year, a 3% increase on the same period in 2023.
“EU exporters will gain new commercial opportunities, including our farmers and agri-food companies,” said European Commission president Ursula von der Leyen.
EU on trade with Trump’s America
The EU was also “ready to negotiate” with the new US President, Donald Trump, von der Leyen told the World Economic Forum during her conference address in Davos this week.
Throughout the week, the conference will focus on Trump’s return to power and include discussions on the President’s immediate act to pull the States from the Paris Climate Accord.
“Our first priority will be to engage early, discuss common interests and be ready to negotiate,” von der Leyen told the conference on Tuesday (21 January).
“We will be pragmatic, but we will always stand by our principles, to protect our interests and uphold our values. That is the European way,” she said.
Growing exports of food and drink remains a priority, and the sector will benefit most from the updated, modernised global agreement with Mexico. Tariffs as high as 100% will be wiped from a vast range of products and produce.
This includes cheese, poultry, pork, pasta, apples, jams, marmalades, chocolate and wine, among others, being exported from the EU into Mexico tariff-free.
New annual limits agreed
| EU product | Current Mexico duty (up to) | Tariff-free volume agreed (tonnes) |
|---|---|---|
| Milk powder | 50% | 50,000 |
| Other cheeses | 45% | 20,000 |
| Dairy preps | 45% | 13,000 |
| Fresh and processed cheese | 45% | 5,000 |
| Butter | 20% | 2,500 |
| Beef | 20% | 30,000 |
| Poultry legs | 100% | 20,000 |
| Pork loin | 45% | 13,000 |
More businesses will be able to export without bureaucratic delays, as the agreement includes the prelisting and acceptance of products from zones recognised as risk-free.
Additional protections under the Geographical Indications regulations, to prevent non-EU foods being promoted as from certain EU regions – like Champagne – have also been strengthened.
Pending EU trade deal with Malaysia
“EU farmers and food and drink producers already export over €2bn worth of products to Mexico,“ said EU agriculture and food commissioner, Christophe Hansen.
“This modernised global agreement with Mexico will open up and guarantee them even greater market shares and opportunities.”
Regarding incoming Mexican food and drink, the new agreement makes clear the EU’s rules on standards, safety, environment, animal & plant health, and GMO must be met.
Meanwhile, von der Leyen announced talks were taking place between Malaysia and the EU, as she said “geopolitical tensions are escalating, and the risk of instability is growing“.
She added: “While some turn inwards towards isolation and fragmentation, Europe and Malaysia are choosing a different path: reaching out, building partnerships, and creating new opportunities for our people.”
A free trade agreement between the two parties would help bolster the €45bn of goods already traded between the EU and Malaysia.
