MEXICO CITY — Mexico and the European Union will sign a long-delayed free trade agreement on Friday that broadens their 2000 trade relationship and is intended in part to reduce reliance on the United States amid elevated U.S. tariffs.
The updated pact moves beyond industrial goods to include services, government procurement, digital trade, investment and agricultural products. Mexico’s President Claudia Sheinbaum will join European Commission President Ursula von der Leyen and European Council President António Costa for the signing, their first trilateral summit in more than a decade.
Officials portray the summit as both an economic and geopolitical gesture. Kaja Kallas, the EU’s foreign policy chief, described the agreement as sending a clear signal about diversification of markets and strategic autonomy.
The accord follows broad terms agreed in 2025 but was held up for more than a year as the EU prioritized other trade negotiations and Mexico sought to avoid complicating talks with its largest trading partner. Both sides have felt pressure from U.S. actions: the EU faced sweeping duties under Washington’s 2025 tariffs and prepared countermeasures before a partial truce, while Mexico has been subject to tariffs on autos, steel and aluminium during President Donald Trump’s second term.
Mexican authorities estimate exports to the EU could rise from about $24 billion annually today to roughly $36 billion by 2030. Current bilateral trade, which has grown about 75% over the past decade, is dominated by transport equipment, machinery, chemicals and fuels.
The deal will grant duty-free access for nearly all goods, including farm items such as Mexican chicken and asparagus and European products like milk powder, cheese and pork, with some quotas applied. Implementation still requires a vote by the European Parliament, expected within months, and domestic procedures in Mexico.
Analysts say the agreement will help both partners diversify export markets but will not replace the U.S., which remains the primary destination for more than 80% of Mexican exports.