EU-Mexico Trade Agreement Eliminates Tariffs on Dairy Products
The European Parliament has ratified a new trade agreement with Mexico, which is set to eliminate tariffs on 99% of products involved in EU-Mexico trade. This agreement, expected to come into effect later this year, includes notable provisions for the dairy industry, setting a zero-tariff rate for the importation of 20,000 tons of cheese and 13,000 tons of other dairy preparations.
The agreement was passed with 479 votes in favor, 119 against, and 65 abstentions. The interim trade agreement, which received 474 affirmative votes, will immediately relax European-exclusive customs regulations, offering a temporary boost to trade while awaiting full ratification by all 27 EU member states.
Mexico's Ministry of Economy anticipates that the agreement, once in effect, will facilitate the swift export of agricultural and advanced manufacturing goods. This aligns with Mexico's broader strategy to diversify trade partnerships, particularly in light of the ongoing mid-term review of the US-Mexico-Canada Agreement (USMCA).
The removal of tariffs, which have previously been as high as 45% on dairy and pork products, is expected to significantly improve the competitiveness of EU goods in the Mexican market. Brussels estimates that these changes will lead to a 75% increase in total exports of goods and services to Mexico, resulting in an annual customs duty saving of approximately 100 million euros for European companies.
In addition to tariff reductions, the provisional agreement secures the protection of traditional European trademarks and patents and provides EU companies with access to Mexican public procurement opportunities. For Mexican industries, this will mean stricter intellectual property enforcement at points of sale.
Ultimately, the interim agreement will be replaced by the Modernized Global Agreement once it is fully ratified by all EU member states, ensuring long-term trade benefits and regulatory alignment between Mexico and the EU.
