Mexico-EU trade talks
Talks on modernising the Mexico-EU Free Trade Agreement (FTA) have gained urgency since the election of US President Donald Trump as the prospect of an end to free trade within North America forces Mexican officials to get serious about diversifying relations. While negotiators hope to seal a new EU deal by the end of the year, many issues are yet to be addressed and renegotiation of the North American Free Trade Agreement (NAFTA) is absorbing bureaucratic capacity.
Anti-American sentiment stemming from Washington’s hostility could favour European firms and investors in Mexico.
The rush to conclude agreements risks bad deals and political blowback from Mexico’s opposition.
Transportation costs and connectivity will ultimately matter more for Mexican diversification than already low tariffs.
