Mexico: EU Trade Deal and Finnish Opportunity

In the times of global uncertainty the certainty is needed. Now more than ever good economic relations are made between friends but not adversaries. The supply chains have become increasingly more important. The trust is of utmost importance for the companies. Trade and investments are made today if there is a sound economic environment. This can be guaranteed by the trade agreements between countries.

The European Union and Mexico have now entered into a new level of trade partnership by the VIII EU Mexico Summit which was held on 22 May 2026 in Mexico City. The event redefined and strengthened our ties for the coming years and for the prosperity of the European Union and Mexico. The summit was hosted by the President of the Mexico, Dr. Claudia Sheinbaum Pardo and was attended by the high-level visitors from Brussels - a delegation that included António Costa, President of the European Council, and Ursula von der Leyen, President of the European Commission and the High Representative for Foreign Affairs, Kaja Kallas. Their presence supported the signing of the Modernized Global Agreement (MGA), the comprehensive update of the bilateral relationship regarding political dialogue, cooperation in various areas, and trade, as well as the Interim Trade Agreement (ITA), the provisional trade instrument that entered into force immediately, subject only to the approval of the Mexican Senate and the European Parliament.

Beyond the renegotiation in the trade arena—which had been on the table since 2016—this event had a social, economic, political, and, above all, international cooperation significance. In the current tense geopolitical environment, this carries also strategic weight for the Mexican economy. With the entry into force of the Interim Trade Agreement (ITA), trade liberalization will expand: 99% of goods traded with the region will be tariff-free. Furthermore, the comprehensive framework of the ITA modernizes the rules for protecting investments and incorporates key issues such as the digital economy, sustainability, and the fight against corruption.

The European Union and Mexico can now celebrate the this important step. The results of the liberalization brought about by the Global Agreement have been remarkable: in 25 years, trade between the EU and Mexico quadrupled, rising from US$18.9 billion in 2000 to US$88.8 billion in 2025. But the potential of this relationship is far from exhausted. Mexico which is currently revising the USMCA needs to diversify its trade. Last year, Mexican exports to the EU represented just 3.6% of Mexico's total exports, while imports from the European bloc totaled 9.7%. The new modernized agreement will open up for Mexico's competitiveness as a strategic partner of the EU in the region.

The European Union is Mexico's third-largest trading partner, its second-largest export market, and its second-largest investor. The potential of this relationship also lies in the investment flows Mexico receives from Europe. The EU contributed 20% of the FDI received by Mexico in almost every year since 2015, with the exception of 2022 and 2024. In 2019, it represented 40%, reaching US$13.8 billion, and according to original figures from the Ministry of Economy of Mexico, in 2025 it will represent approximately 26% of FDI, with US$12 billion.

In 1997, the EU and Mexico had signed an Economic Partnership, Political Coordination and Cooperation Agreement (Global Agreement) and it came into force in 2000 and mostly opened up trade in goods.  It covered also political dialogue and cooperation. The agreement covering trade in services came into force a year later in 2001. The Global Agreement’s trade provisions later developed into a comprehensive Free Trade Agreement. Since the year 2000 – the world had changed rapidly and in 2016, the EU and Mexico decided to modernize the EU-Mexico Global Agreement in a comprehensive and ambitious manner. The two sides reached an ‘agreement in principle’ on the trade part in April 2018. The final technical details on public procurement were concluded in April 2020 and on energy in early 2025.

What does bring this new MGA and ITA to Finnish business?

Updated version takes in to account intellectual property rights to trade and sustainable development etc. The agreement sends a clear signal that both our economies are open for trade and business on the basis of fair rules and high standards. The EU-Mexico trade agreement of 2000 had greatly benefited EU firms. But it did not address some of the new trade and investment issues important today like improving cooperation and supply chains on raw materials critical for the green and digital transitions and opening up new markets in government procurement.

The EU's Global Agreement with Mexico aims to make it even easier for Finnish companies to export to and invest in each other's markets, and strengthen further the EU-Mexico partnership by lifting non-tariff barriers, such as Mexican restrictions on EU food products; safeguarding European intellectual property in Mexico; lowering tariffs on more products – mainly agricultural goods; protecting more Geographical Indications (GIs) – distinctive food and drink products from specific regions in the EU;

The new agreement will remove tariffs, since Mexico has been imposing high tariffs on imports from the EU, such as food and other agricultural products. Under the agreement, Mexico will scrap/remove/eliminate almost all these tariffs so that European products will be more competitive in Mexico and more attractive to Mexican consumers.

The new agreement will now remove non-tariff obstacles to trade like unnecessary technical trade barriers, providing concrete improvements in many areas where it is currently difficult for European exporters and importers to trade with Mexico. Likewisse it makes it easier to export to Mexico and is expected to benefit all EU firms, but especially those producing and selling agri-food products, machinery, mineral fuels and related products, pharmaceuticals and transport equipment.

The agreement will make it easier for EU firms to sell their services in Mexico. Firms in the following areas, in particular, are expected to benefit: business services, financial services, telecoms, transport. As a general rule, the agreement will give EU and Mexico service providers the same opportunities, preventing discrimination in both markets.

Under the new agreement Mexico has agreed to create more opportunities for European companies, by ensuring they can bid for more public contract on the Mexican market, including contracts for Public Private Partnerships; extend market opportunities for European bidders to the procurement markets of 14 Mexican States; make it easier for European firms to bid for Mexican government contracts; treat bids from European firms on an equal footing to those from Mexican firms and ensure its public procurement processes are predictable and transparent.

The new agreement follows the recent the EU-Mercosur agreement and the existing trade agreements in Latin America and the Caribbean. The European Union now has created an excellent framework for Finnish companies who can look for new markets and supply chains. Mexico is worth exploring – there are already some 40 Finnish subsidiaries, 10 production plants and another some 100 through representations. Our task is now to promote the new opportunities here in Finland.

Vamos!

Ari Mäki

Ambassador of Finland to Mexico