EU and Mexico Sign Trade Deal to Counter Trump Tariffs

Mexico and the European Union are set to sign a new free trade agreement on Friday, aimed at reducing dependence on the United States and mitigating the impact of President Donald Trump's tariff policies.

The deal expands on the original agreement signed in 2000. Beyond industrial goods, it covers services, investment, digital trade and agricultural products.

The agreement will be signed in Mexico City by Mexican President Claudia Sheinbaum, European Commission President Ursula von der Leyen and European Council President Antonio Costa at the first summit between the two sides in more than a decade.

Both parties are seeking to diversify exports away from the US market. The EU has been hit by new tariffs imposed by the Trump administration, while Mexico faces steep tariffs on cars, steel and aluminum.

Mexico's economy ministry estimates that the country's exports to the EU could rise from $24bn to $36bn a year by 2030. Trade between Mexico and the EU has grown by 75% over the past decade.

(reuters, bak)