Mexico, EU Eliminate Nearly All Trade Tariffs

(MENAFN) Mexico and the European Union ushered in a transformative new era in their bilateral relationship Friday, formalizing a sweeping modernization of a landmark agreement that will eliminate nearly all trade tariffs and channel billions in European investment into the country.

President Claudia Sheinbaum received an EU delegation led by European Council President António Costa and European Commission President Ursula von der Leyen at the National Palace in Mexico City, marking 26 years since the original global accord between the two parties was first signed.

Sheinbaum, flanked by Foreign Minister Roberto Velasco Álvarez and Economy Secretary Marcelo Ebrard, presided over the signing of the landmark deal, under which 99% of tariffs on Mexican goods will be phased out alongside substantial European investment commitments.

"It is a truly global agreement from the beginning because it also covers political dialogue, cooperation, investment and, naturally, trade. Today, we are elevating this broad platform to a new level," von der Leyen said during a ceremony at the National Palace.

Through the EU's Global Gateway investment strategy, €5 billion will be mobilized in Mexico to finance new wind and solar power generation projects as well as clean mobility initiatives.

"The strength of what we are signing today — the update and modernization of the Treaty and the Global Agreement — is rooted in a vision of shared prosperity, joint work, and shared development. And just as Mexico has a relationship with the United States, we also have a relationship with the European Union, and we want to strengthen both relationships," said Sheinbaum.

The accord also deepens cooperation on security and the fight against transnational organized crime. Ahead of the signing, Mexico's Security Minister Omar García Harfuch held separate talks with EU foreign policy chief Kaja Kallas.

MENAFN23052026000045017169ID1111156859