The Council of the European Union has given final approval to a modernised trade agreement between the European Union and Mexico, completing the EU’s internal ratification process for the new accord.
The decision follows the signing of the Interim Agreement on Trade during the EU Mexico summit on 22 May and approval by the European Parliament on 8 July.
The agreement updates the trade provisions of the existing EU Mexico Global Agreement and is intended to improve market access for businesses on both sides. It removes most remaining customs duties, expands opportunities for trade in services, investment and public procurement, and seeks to reduce barriers to trade.
The agreement also includes updated provisions covering digital trade, intellectual property, customs cooperation, competition policy and critical raw materials. It strengthens protection for European geographical indications and is expected to benefit more than 45,000 European companies exporting to Mexico, most of which are small and medium sized businesses.
Helen McEntee said the agreement strengthens one of the EU’s closest partnerships in Latin America and reflects the bloc’s commitment to open, rules based trade. She also said the EU intends to continue expanding trade relationships with other international partners.
Because the trade agreement falls within the European Union’s exclusive competence, it does not require approval by individual member states. It will enter into force on the first day of the second month after both the EU and Mexico formally notify each other that their domestic procedures have been completed.
Mexico is expected to complete its ratification process after the summer. Once both sides exchange notifications, businesses will have a two month preparation period before the agreement takes effect.
The Interim Agreement on Trade will operate independently until the wider modernised EU Mexico Global Agreement enters into force.
Trade relations between the EU and Mexico are currently governed by the Global Agreement, which entered into force in 2000. Negotiations to modernise the framework began in 2016 and concluded in January 2025.
Mexico is the EU’s second largest trading partner in Latin America, while the EU ranks as Mexico’s third largest trading partner. Bilateral trade reached almost €87 billion in goods during 2025 and more than €29 billion in services in 2024, according to the Council.
