In 1997, Mexico was the first Latin American country to sign a partnership agreement with the EU. The EU-Mexico Economic Partnership, Political Coordination and Cooperation Agreement came into force in 2000 and created a Free Trade Area (CETA) between the two parties (see trade section below). In addition, regular high-level contacts will be established between the EU and Mexico and will serve as a catalyst for increased investment flows.  On 28 April 2020, the EU and Mexico concluded the final outstanding element of negotiations on their new trade agreement and agreed on the exact scope of reciprocal openness of public procurement and a high degree of predictability and transparency in procurement procedures. This will enable the EU and Mexico to promote the signing and ratification of this agreement in accordance with their respective rules and procedures.  On 28 April 2020, Mexico and the European Union concluded negotiations to modernize the trade pillar of the agreement. This was the last outstanding element of their new trade agreement. The Free Trade Agreement between Mexico and the European Union (EU-MX FTA) is a trade agreement between the European Union and Mexico. Signed on 12 December 1997 in the city of Brussels as the “Economic Partnership, Political Coordination and Cooperation Agreement between the Mexican United States and the European Community and its members.” The agreement came into force on 1 October 2000 and the tax on a large quantity of import goods was abolished or reduced.
Negotiations with Mexico began in May 2016 and the two sides reached an agreement in principle on the trade side in April 2018. Mexico is currently the EU`s largest trading partner in Latin America, while only the United States and Canada trade more goods with Mexico than the 27-person bloc. Despite the distance and cultural differences between the two sides, there are already economic links between the EU and Mexico: trade in goods alone increased by 148% between 2000 and 2018, when the initial trade agreement between the two countries came into force. The initial Association Agreement brought many trade benefits to the EU and Mexico, although some trade barriers remain. “The economic, social and political differences between the EU and Mexico represent the comparative advantages of each party for the mutually beneficial trade in goods and services,” Dirk De Biévre, professor of international politics and chair of the department of political science at the University of Antwerp, told World Finance. “These differences make them complementary savings that create the conditions to take advantage of trade facilitation and the stabilization of mutual expectations that a trade agreement can offer.” The European Union will update the economic association agreement reached on 28 April with Mexico under conditions denounced by the University of Llauradors, “can be very detrimental to the interests of the citrus sector of Valencia”. For this reason, the association is calling for the effects of this update to be reviewed and for the signing and ratification of the agreement to be suspended until its effects are known.