MERCOSUR

European Commission President Ursula von der Leyen and European Council President António Costa signed on Friday a revamped trade deal with Mexico as part of the EU’s efforts to expand its influence in Latin America, shortly after the Mercosur pact entered into force.

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The deal was signed at an EU–Mexico summit in Mexico, with von der Leyen and Costa joined by the country’s President Claudia Sheinbaum, amid rising geopolitical tensions and shifting global alliances following the return of US president to the White House.

The economic partnership between the two medium-sized powers reflects efforts on both sides to reduce their dependence on the US — the EU’s and Mexico’s largest trading partner—and on China, for which Mexico has become a hub for electric vehicle production.

“The EU and Mexico are committed to a close strategic partnership,” von der Leyen said, adding: “Today’s modernised Agreements set out our shared vision of the future and will deliver many benefits for both sides.”

The EU–Mexico trade deal strengthens the EU’s diversification strategy by updating a 20-year-old agreement that had already eliminated tariff barriers on bilateral trade.

Under the new deal, the EU will access new markets for products, such as agri-food (pork, dairy, cereals, fruit and pasta), pharmaceuticals and machinery.

EU tightens trade ties in Latin America

Mexico is the EU’s second-largest trading partner in Latin America and the EU is Mexico’s second-largest export market. Trade between both sides reached €86.8 billion in goods in 2025, alongside €29.7 billion in services in 2024.

The figures remain far smaller than Mexico’s trade with its neighbour, the US, which exceeded $900 billion in goods and services in 2024. But the deal comes as Mexico faces mounting pressure from a more protectionist White House.

For its part, the EU has been grappling with repeated tariff threats from Trump despite a trade deal clinched in 2025.

“At a time of growing global uncertainty, the EU and Mexico are choosing openness, partnership and ambition,” EU trade Commissioner Maroš Šefčovič, who was also in Mexico City, said. He pointed out that more than 43,000 European companies export to Mexico, while over 11,000 EU companies operate in the country.

On agriculture, the pact will open up new markets for Mexican products such as coffee, fruit, chocolate and agave syrup.

A total of 568 European and 26 Mexican geographical indications will also be protected, alongside the opening of public procurement markets, according to the Commission.

With this new deal, the EU also wants to signal its strengthened presence in Latin America, where China has expanded its influence.

“97% of the GDP of Latin America and the Caribbean will be covered by sophisticated preferential agreements with the European Union,” a senior EU official said, adding: “There is no other region in the world that has such a dense and connected network of agreements.”

The EU has already built new trade ties with Argentina, Brazil, Paraguay and Uruguay through the Mercosur trade agreement, which provisionally entered into force on 1 May and liberalises trade flows between the EU and those countries.

However, its signing has faced strong opposition from EU farmers, who fear unfair competition from Latin American imports, and ratification was suspended after MEPs challenged the agreement before the EU Court of Justice.

Brussels argues the Mexico agreement should avoid the backlash faced by Mercosur because sensitive agricultural imports remain capped through tariff quotas.

Published on
12/05/2026 – 19:47 GMT+2

An EU committee made up of experts from member states voted on Tuesday to ban imports of Brazilian meat starting 3 September due to the use of antimicrobials to stimulate animal growth.

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The decision to remove Brazil from the list of countries that comply with EU food safety standards comes as the EU-Mercosur free trade agreement between the EU and Brazil, Argentina, Paraguay, and Uruguay provisionally entered into force on 1 May.

The deal, which liberalises trade of agri-product between both sides of the Atlantic, remains fiercely opposed by EU farmers, who fear that different production standards on both sides of the Atlantic will create unfair competition from Latin American imports.

“The fact that the Union is able to enforce the rules is essential for trust, a level playing field, and good relations with our trading partners,” an EU diplomat told Euronews.

An official with knowledge of the file said that the vote was unanimous and makes Brazil the first country removed from the list of states complying with EU restrictions on antimicrobial use in animals.

The list of third countries which comply with EU requirements, and therefore can export food-producing animals to the EU, will be formally adopted in the coming days.

The European Commission has consistently said EU food safety rules would continue to apply to agricultural products imported from Latin America after the deal enters into force.

Commission’s spokesperson Eva Hrncirova confirmed to Euronews that from 3 September Brazil will no longer be able export to the EU commodities such as bovine, equine, poultry, eggs, aquaculture, honey and casings.

“Trade agreements do not change our rules,” Hrncirova said, adding: “The Commission establishes the Union’s mandatory sanitary and phytosanitary standards, and both our farmers and exporters from third countries have to comply with them.”

Brussels has also negotiated safeguards aimed at protecting EU farmers, including mechanisms to monitor potential market disruption from a surge in imports from Mercosur countries. Quotas were also introduced for sensitive products, including poultry and meat.

Once compliance with the safety rules is demonstrated by Brazil, the EU will be able to resume the imports, and Brazil will be able to benefit from the same tariff relief as the other Mercosur countries.