By Edith Hancock


The European Union and Mexico secured a fresh trade deal on Friday ahead of U.S. President-elect Donald Trump, who has threatened both regions with steep tariffs on exports, taking office next week.

The agreement, which still needs to be approved by governments on both sides, would see Mexico scrap the high tariffs it imposes on EU goods such as cheese and wine. The deal seeks to grow European exports in key areas such as financial services and e-commerce, strengthen the supply chain of critical raw materials and encourage EU investment in Mexico. It will also give EU companies access to Mexican government contracts and vice versa.

"The EU and Mexico are already trusted partners. Now, we want to deepen our cooperation even further, strongly benefiting our people and economies," Ursula von der Leyen, the president of the European Commission, said on Friday. She added that exporters such as farmers and agri-food companies will benefit from new business opportunities under the agreement.

"This landmark deal proves that open, rules-based trade can deliver for our prosperity and economic security, as well as climate action and sustainable development," she said.

Mexico is the EU's second-largest trading partner in Latin America, the commission said, noting that EU-Mexico trade in goods hit 82 billion euros ($84.39 billion) in 2023.

Both regions are updating a previous trade agreement from 2000. A broad swathe of goods will become duty-free under the new deal, notably in the agriculture and food sector. The agreement also has provisions to safeguard Geographic Indications, a legal protection granted on products like Parma ham and champagne.


Write to Edith Hancock at edith.hancock@wsj.com


(END) Dow Jones Newswires

01-17-25 1148ET