European Union and Mexico sign modernized trade agreement

The European Union and Mexico signed a modernized trade agreement during the 8th EU-Mexico Summit held in Mexico City on Friday. The event was attended by European Commission President Ursula von der Leyen, European Council President Antonio Costa, and Mexican President Claudia Sheinbaum Pardo. This summit marked the first high-level meeting between the two parties in over a decade, signaling a restart of their diplomatic relationship. The agreement includes both a Modernized Global Agreement (MGA) and an Interim Trade Agreement (ITA), replacing the framework that has been in place since 2000. Key provisions include the elimination of tariffs on a wide range of agri-food products, an area previously insufficiently addressed. European Council President Antonio Costa described the deal as a geopolitical statement, highlighting the importance of the partnership amidst global economic uncertainty. Currently, the EU is Mexico's second-largest export destination, with over 11,000 European companies operating in the country and supporting approximately 5 million jobs. Both sides emphasized the necessity of the agreement to ensure fair trade, sustainability, and cooperation in a changing global landscape characterized by industrial competition and geopolitical fragmentation.