Mexican investments in the European Union (EU) totaled 25 billion euros in 2024, according to the latest data available from the European Commission.

These investments, as well as those attracted by Mexico from companies in the 27-country bloc, will enjoy greater certainty once the Interim Trade Agreement (ITA) enters into force.

The ITA was signed on May 22, 2025, in Mexico City, and both parties expect it to enter into force before the end of this year.

Mexican Investments in the European Union

Mexican companies such as Cemex, Sigma, Grupo Bimbo, Alsea, FEMSA, and Nemak have expanded their investments in Europe through plants and acquisitions. Additionally, they have grown their commercial networks in the construction, food, retail, and automotive manufacturing sectors. 

From 2021 to 2022, Mexico’s investments in the European Union rose from 26 billion euros to 34 billion euros, reaching a peak over the past five years.

They then plummeted to 21 billion euros in 2022 and partially recovered to total 24 billion euros in 2023.

Internal Trade Agreement

The ACI contains provisions that liberalize investment. It does so by following the same approach as the EU’s most ambitious trade agreements signed to date.

In particular, all substantive disciplines in the investment chapter will apply to both the services sector and the non-services sector.

Specifically, investors and their investments will benefit from the commitment to provide non-discriminatory treatment compared to domestic or third-country investors and investments. They will also benefit from ambitious market access disciplines (which address quantitative restrictions such as monopolies and exclusive rights, quotas, and economic needs tests). In addition, it includes a prohibition on certain performance requirements. 

In the energy sector, the ATI ensures that the Most-Favored-Nation principle will apply to both past and future free trade agreements that Mexico has signed or may sign.

Therefore, the agreement guarantees that EU investors will receive treatment on an equal footing with investors from Mexico’s other preferential trading partners.

The Modernized Global Agreement (AGM, which includes the ACI) between Mexico and the European Union will establish a specialized investment tribunal. The central objective of this mechanism is to enhance legal certainty and promote business growth in the transatlantic market.

From the EU-Mexico Free Trade Agreement to the New Investment Dispute Settlement Tribunal

The text updating the Free Trade Agreement between the European Union and Mexico (EU-Mexico FTA) will replace the former bilateral investment agreements (BIIAs). In their place, a new Investment Dispute Settlement Tribunal is established.

This state-of-the-art instrument establishes the key regulatory framework for ensuring the flow of cross-border capital. It also regulates practical scenarios applicable to both Mexican companies with investments in the European Union and European companies established in Mexico.

What Assets Does the New Investment Agreement Protect?

This international treaty broadens the traditional definition of asset protection, shielding not only corporations but also a wide range of financial and operational tools. The legal coverage includes:

• Financial instruments: Stocks, bonds, and loans.
• Operational assets: Service concessions and construction contracts.
• Property and rights: Intellectual property rights, real estate rights, leases, and guarantees.