Mexico and EU sign modernized free trade agreement

Mexico and the European Union signed a modernized free trade agreement in Mexico City on Friday, expanding a two-decade-old pact as both seek to diversify their economies and reduce dependence on the United States. The deal was signed by Mexican President Claudia Sheinbaum, European Commission President Ursula von der Leyen, and European Council President Antonio Costa at the first bilateral summit in over a decade.

The agreement updates a 2000 accord that primarily covered industrial goods, now adding services, government procurement, digital trade, investment, and agricultural products. It aims to eventually provide duty-free access for nearly all goods traded between the two sides, with specific quotas for sensitive farm products like Mexican chicken and asparagus and European dairy, pork, and cheese.

Officials framed the pact as a strategic move amid global economic uncertainty and shifting trade policies. European Council President Antonio Costa called it a true geopolitical statement, saying it better prepares both sides for the challenges of our time. President Sheinbaum said the agreement opens up enormous opportunities, highlighting potential in pharmaceuticals,...