The modernized FTA between Mexico and the European Union (EU) will eliminate 99% of tariffs. This will take effect once the agreement enters into force, which is expected to happen before the end of 2026.
Specifically, 99% of products will be traded between the two parties duty-free, and 98% of goods will be duty-free from the moment the agreement enters into force.
FTA between Mexico and the European Union
The new agreement will eliminate most of the remaining tariffs on EU agricultural exports. Additionally, it will simplify sanitary and phytosanitary standards for EU exporters. It will also increase protection for EU foods and wines through greater use of GIs (Geographical Indications) comparable to those within the EU.
This Friday, at the National Palace, Mexico’s Secretary of Economy, Marcelo Ebrard, and European Commissioner for Trade, Maroš Šefčovič, signed the Interim Trade Agreement (ITA). This is the modernized FTA between Mexico and the European Union.
The new agreement will regulate trade in goods and services. It will enter into force once it is approved by the European Parliament and the Mexican Senate.
Industrial Products
Full liberalization across all industrial sectors was already agreed upon under the current agreement, known as the Free Trade Agreement between the European Union and Mexico (FTAEU-Mexico). Furthermore, the current market opening covers chemicals, plastics, cosmetics, textiles, and clothing.
However, by removing non-tariff barriers, the modernized agreement will benefit EU exports across various industries. In particular, the sectors that will benefit include machinery, transportation equipment, and pharmaceuticals.
Agri-food Market Opening
The EU-Mexico Free Trade Agreement (FTA) completely eliminated tariffs on industrial goods following a transition period that ended in 2027. In contrast, the opening of the agri-food market was selective. As a result, 74% of agricultural and fisheries tariff lines (883 out of a total of 1,192) were liberalized, while the remaining 309 were partially or totally excluded from the benefit.
Furthermore, the current Agreement did not contain many of the provisions on trade in goods that have since become standard in trade agreements.
Mexico granted the European Union new duty-free agri-food quotas through the ACI, including cheese, milk, meat, and wine.