European lawmakers have approved a significant upgrade to the EU-Mexico partnership, enhancing trade relations and political cooperation. The new agreement aims to lower tariffs and improve access for EU businesses in Mexico.

On Tuesday, the Foreign Affairs and International Trade committees of the European Parliament endorsed a modernized global agreement with Mexico, setting the stage for deeper political and economic collaboration. This agreement, once implemented, will replace the existing framework and is expected to boost EU agricultural exports by eliminating high tariffs, facilitating EU companies’ participation in Mexican public procurement, and reinforcing commitments to climate and labor rights.

The modernized agreement is projected to increase EU exports of goods and services by up to 75%, potentially saving EU businesses around €100 million annually in customs duties. It will eliminate nearly all remaining tariffs, significantly benefiting EU farmers and agri-food exporters, particularly for products like cheese and pork, which currently face tariffs as high as 45%. Additionally, the agreement will protect 568 geographical indications for traditional EU food products in Mexico, preventing the sale of imitations.

In a time of geopolitical uncertainty, the partnership is seen as crucial for upholding a rules-based international order. The agreement includes binding commitments to democratic governance, the rule of law, and human rights, enhancing cooperation to protect civil society and combat corruption. Furthermore, it grants EU companies unprecedented access to public procurement in 14 Mexican states, allowing for environmental and social considerations in procurement processes.