Modernized Global Agreement: Strategic Opportunities for Mexican and European Companies.

On May 22, 2026, Mexico and the European Union finalized the renewal of their Global Agreement (MGA), updating the trade agreement in force since 2000 and adapting it to an international context marked by geopolitical tensions, protectionist policies, and the reconfiguration of global supply chains.

According to the Delegation of the European Union to Mexico and the Mexican Business Council for Foreign Trade, Investment and Technology (COMCE), the European Union is currently Mexico’s third-largest trading partner, the second-largest market for Mexican exports outside the Americas, and in 2025 bilateral trade reached approximately 86 billion euros. Likewise, cumulative EU investment in Mexico amounts to 207 billion euros. Currently, around 11,000 companies with European capital operate in Mexico, generating approximately 5.7 million jobs, while around 43,000 European companies export their products to Mexico.

The modernization of the agreement opens a new strategic stage in the bilateral relationship, allowing, among other benefits, the strengthening of investments through clearer, more modern, and transparent rules, as well as the substantial elimination of tariffs in strategic sectors for both parties, particularly the agri-food sector.

One of the main components of the new framework is the creation of the interim Trade Agreement (iTA), a mechanism that will allow the immediate application of several trade provisions while the ratification processes of the Global Agreement are completed by the European national parliaments and the Mexican Senate. This instrument seeks to accelerate the economic benefits for both regions and provide greater legal and commercial certainty for companies and investors.

The new agreement contemplates virtually total trade liberalization between Mexico and the European Union, through the elimination or significant reduction of tariffs on products originating from both regions. In particular, the Mexican agri-food sector will be one of the main beneficiaries, as it is estimated that 86% of Mexican exports in this sector will be exempt from tariffs.

Likewise, the protection of Mexican designations of origin and geographical indications within the European Union will be strengthened, granting recognition and legal protection to emblematic products such as Café Chiapas, Chile Habanero de Yucatán, Vainilla de Papantla and Mango Ataulfo del Soconusco. At the same time, Mexico will reinforce the protection of European agri-food products by prohibiting the imitation of recognized geographical indications such as Prosciutto di Parma, Parmigiano Reggiano, Champagne, Rioja wine, Feta cheese, among others.

In the industrial sector, the modernization of the agreement will open new opportunities for strategic sectors such as automotive, auto parts, advanced manufacturing, medical devices, pharmaceuticals, machinery, and telecommunications. In addition, the agreement is expected to increase European investments in Mexico, particularly in sectors associated with nearshoring, infrastructure, energy, and digitalization, further strengthening productive integration and regional supply chains.

Mexican authorities estimate that, as a result of the new agreement, Mexican exports to the European Union could increase by up to 50% by 2030, rising from approximately 23.8 billion dollars to more than 36 billion dollars annually.

Unlike the original agreement signed more than two decades ago, the new version incorporates next-generation trade disciplines related to digital trade, customs facilitation, investment protection, intellectual property, public procurement, services, environmental sustainability, labor rights, and anti-corruption mechanisms. These provisions seek to modernize trade rules and respond to the new dynamics of the global and digital economy.

Another relevant aspect is the support for small and medium-sized enterprises, as the agreement includes measures aimed at reducing administrative barriers, simplifying customs procedures, and facilitating compliance with certifications and rules of origin, with the objective of expanding the participation of Mexican and European companies in both markets.

Finally, in addition to the economic and commercial component, the new agreement strengthens political and strategic cooperation between Mexico and the European Union in areas such as human rights, energy transition, sustainable infrastructure, combating climate change, and international cooperation, consolidating a broader, more modern, and comprehensive bilateral relationship between both regions.

At Cannizzo, we remain available to support Mexican and European companies operating in Mexico by providing specialized legal counsel and helping them identify and capitalize on the opportunities arising from this new chapter in Mexico–European Union relations, including matters related to regulatory compliance, foreign investment, and regional expansion strategies.

Yours sincerely,

Cannizzo