Mercosuru pros? “On a trade agreement with Mexico, European farmers will benefit”

The trade agreement between the European Union and Mexico is beneficial for European exporters, including farmers – the analysts of the Polish Economic Institute believe. Mexico is a net importer of food products and records a commercial deficit in rotation with the community.

At the beginning of September, in the shadow of the contract with Mercosur (Argentina, Brazil, Paraguay and Uruguay), the European Commission also adopted a new trade agreement with Mexico. The first agreement with this country was concluded 25 years ago, and the negotiations on the new matter lasted since 2016 and ended at the beginning of 2025. The agreement on the EU-Miksyk line will now have to be ratified, among others by European leaders.

Representatives of the Polish Economic Institute (PI) informed that deepening the relationship with Mexico is motivated by the growing importance of services, especially digital, which were not part of the contract of 2000, as well as the EU desire to diversify trade partners. They pointed out that this is related to the US protectionist policy and the increasing presence of China in the Latin American region.

Pie analysts indicated that the new Union agreement with Mexico eliminates restrictions in the agri-food sector, services and public procurement. They also noticed the provisions on digital trade and data protection introduced to it.

“The EU-Miksyk agreement is beneficial for European farmers. Mexico is a net importer of EU food products. The commercial deficit in 2024 amounted to $ 643 million. Mexican export of food products goes mainly to the USA (81 percent in 2024) ” – indicated in the study.

As explained, the existing EU-MaxSic agreement concerned primarily commercial exchange with non-agricultural products. The new version of the agreement assumes the abolition of 45 % customs duties on European eggs and pork products and 20 % duties on pasta, chocolate and confectionery, blue cheese, potatoes, apples and canned peaches. The contract also provides contingents with a zero customs rate for milk (50,000 t), dairy products (13,000 t), beef (30,000 t) and chicken legs (20,000 t), which will be gradually worn. Pie also indicated that the procedures for the import of products to Mexico will be simplified and protection against imitation to 568 European food products and drinks will be expanded.

A new contract – the PIE analysts assessed – to provide better access to Mexican critical raw materials. It is the Latin American state that provides the EU with, among others fluorite (1/3 of global deliveries to the Union)), manganese and copper – Analysts said. They added that Mexico last year He provided 11 percent global ponytail extraction, 4 percent BARTY, 1 percent antimony, 0.2 percent phosphate rocks, 0.1 percent Natural graphite and smaller amounts of coal coal, feldspar and lithium.

In the opinion of Pie For Mexico, a new agreement is a chance to increase European investments in this country. The Union countries are the second source of foreign direct investment in Mexico after the USA with 15 percent. For 2024, they had a value of $ 5.7 billion. And they came primarily from Germany and the Netherlands. “The new agreement obliges Mexico to create even better conditions to attract new investments with the EU,” the Institute noted.

He also stated that Mexico is already an important market for European products – it is the largest recipient of EU products in Latin America and 8 in the world. Last year, the export of EU goods to Mexico reached around EUR 52 billion – mainly from Germany and Spain – and was focused primarily on industrial goods. On the other hand, EU imports from Mexico were more than a third smaller than exports and in 2024, its value was about EUR 31 billion.

Regarding Poland, the Institute noted that Mexico is also the most important market in Latin America, although the share of our exports to this country has been small and for years is about 0.3 percent. Polish exports. “Strengthening the Union's relations with Mexico, however, has indirect significance for Poland due to the connections of our country with the German and American market (by Mexico) and the opening of the market for food products” – summed up analysts. (PAP)

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