May 23, 2026 | 08:46 am

TEMPO.CO, Jakarta - The European Union and Mexico on Friday signed a long-stalled free trade agreement as they seek to decrease their dependence on the United States, DW reported."The goal is simple: We want to create more jobs and generate more value on both sides of the Atlantic," said European Commission President Ursula von der Leyen during the eighth EU-Mexico Summit in Mexico City."This agreement gives us great wings to fly very high," she added.The deal, which expands on the 2,000 trade accord, provides duty-free access for almost all goods, including farm products. The old pact covered only industrial goods.The accord comes amid ongoing negotiations between Mexico, the United States and Canada on their three-way free trade agreement.EU, Mexico tighten trade tiesMexico's President Claudia Sheinbaum emphasized the need for "opening other horizons.""We are living through complex times on the international stage, but it is precisely at moments like these that we must act with greater cooperation, dialogue, and humanist vision. Future prosperity must be shared, or it will not be lasting," Sheinbaum said during the press conference.According to Mexico's Economy Ministry, the new deal could boost Mexican exports to the EU from around US$24 billion annually to US$36 billion by 2030. The EU, meanwhile, exports roughly US$65 billion in goods to Mexico each year.Shortly after signing the accord, European Council President Antonio Costa called the agreement "a true geopolitical statement.""With the modernized ‌global agreement, we are better prepared to face the challenges of our time," he said. Both EU, Mexico hit by Trump's tariff offensiveIn April 2025, the EU was hit with sweeping new duties under U.S. President Donald Trump's so-called "Liberation Day" tariffs ‌and prepared countermeasures, though they were later suspended to allow room for negotiations.Earlier this week, the EU agreed to implement a deal signed in July last year with Washington, which sets levies on most European goods at 15 percent.Mexico has also been hit with U.S. tariffs on automotive, steel and aluminum exports.Around 80 percent of Mexican exports go to the U.S., whose economy has become more protected during Trump's second term.Read: EU Strikes Deal on US Trade Pact Ahead of Trump DeadlineClick here to get the latest news updates from Tempo on Google News