EU and Mexico Sign Mutual Tariff Reduction Agreement to "Reduce Reliance on the US"
Mexico and the European Union (EU) have agreed on an amendment to their trade agreement that will lower mutual tariffs in an effort to reduce dependence on the United States.
According to AFP on May 22 (local time), Claudia Sheinbaum, President of Mexico, and Ursula von der Leyen, President of the European Commission, signed the expanded and amended agreement during the 8th EU-Mexico Summit held in Mexico City.
Claudia Sheinbaum, President of Mexico (right), and Ursula von der Leyen, President of the European Commission, are signing the revised agreement.
View original imageThis amended agreement supplements the original agreement signed in 2000. Its core content is the removal of most remaining barriers in the fields of trade and investment. The amendment aims to boost trade in the automotive parts sector, which was hit by tariffs imposed by the Trump Administration in the United States, and to grant tariff-free benefits to certain agricultural and livestock products.Mexico has also agreed to recognize the protection of geographical indications for hundreds of EU regional specialty products.
In a joint statement, both sides said, "In an era of increasing uncertainty and significant change, we have decided to expand, deepen, and modernize our strategic partnership."
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The EU recently negotiated with the United States to have most European products subject to a 15% tariff. Mexico, despite the ongoing United States-Mexico-Canada Agreement (USMCA), continues to face frequent tariff pressure from the United States. President Sheinbaum has repeatedly emphasized the need to diversify trade, stating, "We must open up new horizons."
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