Trade treaty with Mexico could offer opportunities for meat and dairy

The European Union and Mexico have modernized their trade agreement. This is presented as a victory for the European agrifood sector, although the trade blocs are mutually suspending the restrictions for the sector. There are exceptions for the most sensitive products. The trade agreement replaces an existing trade treaty, the so-called Global Agreement from 2001. The negotiations were completed in January 2025 and the European Parliament agreed on 8 July to the new trade and cooperation agreement with Mexico. The agreement was adopted by a large majority. This brings the agreement closer to entry into force, although the full treaty is not yet final. For the European agrifood sector, the phase-out of Mexican import tariffs on among other things dairy, cheese, pork, poultry and processed food products is especially relevant. Opportunities for agrifood? The EU presents the trade agreement as a victory. According to the European Commission, Mexico is the second-largest importer of European agrifood products in Latin America. In 2025, the EU exported €2.5 billion worth of food and drinks to Mexico. The country imports particularly many preparations and ingredients for the food industry, vegetables, wine and dairy. The trade treaty is especially interesting for the meat and dairy sectors. For poultry meat, import duties can now rise to 100%, for pork to 45% and for cheese also to 45%. Under the new agreement, tariffs for poultry and pork will go to 0%, with the exception of pork loins. A quota of 10,000 tons applies to that. In dairy, tariffs disappear for among other things yoghurt and blue cheeses. For other cheese, a duty-free quota of 20,000 tons will apply and for fresh and processed cheese 5,000 tons. Chocolate, confectionery and pasta will also get duty-free access. In addition, Mexico agrees to regional protection of various products. In total, 568 European geographical indications will be protected. One of the products that will receive the new protected status is Gouda Holland. Mexican access remains relatively limited However, this is offset by the fact that trade restrictions are being reduced mutually. Mexican agrifood products will also get broader access to the European market, although restrictions will remain. For example, there will be a quota of 5,000 tons of beef at a 7.5% import duty. Mexican pork and poultry will become largely duty-free, although strict quotas will remain for ham and chicken breast. In addition, Mexico will get broader quotas for among other things honey, egg yolk, ethanol, raw sugar and bananas. The new sugar quota amounts to 30,000 tons and within that a reduced tariff of €49 per ton applies. To ensure that the market impact is not too drastic, import tariffs will be expanded in stages. The umbrella organization of European agricultural organizations Copa-Cogeca responded in a moderately positive way to the agreement. The organization sees opportunities for European exports, but emphasizes that we still have to see whether implementation turns out positively. In particular, compliance with European standards, the protection of sensitive sectors and the monitoring of import quotas remain points of attention according to the umbrella organization.