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EU and Mexico revive stalled trade deal as Trump tariffs loom

17 January 2025 23:50 (UTC +04:00)

The European Union and Mexico revived a stalled free trade agreement on Friday, days before the return to the White House of Donald Trump, who has threatened both sides with tariffs, APA reports citing Reuters.

The two parties are seeking to update their trade accord from 2000, which covers only industrial goods, by adding services, government procurement, investment and farm produce.

EU proponents say the bloc urgently needs new partners to reduce its reliance on China, particularly for critical raw materials, and to insulate it from Trump tariffs. Last month, It struck a deal with South America's Mercosur bloc.

"The modernised deal offers a renewed platform for coordination on future challenges – especially important given that the EU and Mexico are both in the crossfire of Trump’s tariff threats," said Borja Gimenez Larraz, the European lawmaker overseeing the planned free trade agreement.

EU and Mexican negotiators reached an initial deal in 2018, and agreed in 2020 to grant reciprocal market access to each other's tenders for public contracts.