Mexico and the European Union signed a long-stalled free trade agreement on Friday, aiming to reduce dependence on the U.S. and shield themselves from U.S. President Donald Trump's tariffs.
The accord, reached broadly in 2025 but delayed, expands a 2000 Mexico-EU trade pact to include services, government procurement, digital trade, investment, and farm produce.
Mexican President Claudia Sheinbaum, European Commission President Ursula von der Leyen, and European Council President Antonio Costa signed the deal in Mexico City.
Costa called the agreement "a true geopolitical statement." Sheinbaum highlighted opportunities in pharmaceuticals, agriculture, technology, and electric mobility.
Both sides seek to diversify exports away from the U.S., which has imposed tariffs on both the EU and Mexico. The new deal could boost Mexican exports to the EU from $24 billion to $36 billion by 2030.
The EU exports about $65 billion in goods to Mexico annually. The deal provides duty-free access for most goods, including farm products, with some quotas.
The European Parliament is expected to approve the deal within months.
