Mexico and the EU Move Closer to the Entry into Force of the Modernized Global Agreement

The European Parliament approved the Modernized Global Agreement (MGA) between Mexico and the European Union, as well as the Interim Trade Agreement (ITA) on July 8, 2026. With this vote, the EU made substantial progress in approving the trade component of the new bilateral framework. However, internal steps remain before implementation, including the corresponding process before Mexico's Senate and the final approval by the Council of the EU.

As background, on May 22, 2026, Mexico and the EU signed both instruments at the Mexico-EU Summit.

The agreement will replace the framework in force since 2000 and cover the economic, trade, political and cooperative relationship between the parties, incorporating disciplines on trade, investment, public procurement, sustainable development, labor rights, human rights, the rule of law, transparency and anticorruption.

Specifically, the ITA consolidates the trade provisions that fall under the exclusive competence of the EU, such as tariffs, rules of origin and digital trade, while the MGA also covers political and cooperation matters, investment protection, government procurement, labor rights and anticorruption.

This dual structure serves a practical purpose: It allows for the early application of the new trade provisions without waiting for all 27 national parliaments of the EU members to ratify the MGA. Once that process is complete, the ITA will cease to have effect and will be fully superseded by the MGA.

Scope and Impact of the Agreement

The approval of the MGA and the ITA comes in a context where Mexico and the EU are seeking to update a strategic relationship that, while boasting more than two decades of institutionalization, has been operating under a framework negotiated prior to the major transformations in global trade, digitalization, the energy transition and reconfiguration of supply chains. In this regard, the new instrument not only modernizes the trade rules in force since 2000, but also elevates the bilateral relationship by incorporating a broader agenda on investment, sustainability, labor rights, regulatory cooperation, transparency and anticorruption.

With its approval, the agreement opens the door to a deeper and more functional relationship between Mexico and the EU, suited to the current economic environment. For Mexico, it represents an opportunity to consolidate its trade diversification strategy beyond North America, attract greater European investment and strengthen its role as a productive platform with preferential access to two of the world's most important markets. For the EU, it means having a strategic partner in Latin America with industrial capabilities, a privileged geographic location and an extensive network of trade agreements, at a time when the bloc is seeking to reduce dependencies, expand markets and strengthen alliances with like-minded countries.

The MGA will allow virtually all Mexican exports to access the European market under preferential conditions. The sectors with the greatest potential to benefit include:

• agri-food
• beverages with designation of origin
• advanced manufacturing
• automotive and auto parts industry
• medical devices
• chemical and pharmaceutical sector

This new agreement positions Mexico as one of the few countries with simultaneous preferential access to both North America, through the United States-Mexico-Canada Agreement (USMCA), and the EU.

The significance of this instrument is underscored by figures shared by the Ministry of Economy. In 2025, the EU was the second-largest investor in Mexico, with foreign direct investment of US$9.887 billion, equivalent to 24.2 percent of the national total.

Mexican Secretary of Economy Marcelo Ebrard says this is good news for Mexico, as increases are expected in agricultural, automotive, auto parts and exports from other sectors. He also noted that the agreement will likely enter into force this year.

What Comes Next

With the European Parliament's approval, the Council of the EU must proceed to formally conclude the MGA. However, its full entry into force requires ratification by all EU members and Mexico.

In parallel, the European Council must approve the ITA, which will enter into force on the first day of the second month following the date on which both parties mutually notify each other of the completion of their respective internal procedures, which is expected to occur by the end of this year.

The progress approved by the European Parliament thus represents a decisive step, but not the closing of the process. For Mexico, the strategic value lies in the fact that the agreement strengthens its diversification agenda, broadens preferential access for its exports to EU members, and reinforces its position as a productive platform with simultaneous ties to both North America and the EU.

For more information or questions, please contact the authors.

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