New trade deals to be signed today at EU-Mexico summit

The approval of the modernized trade agreements between the EU and Mexico is set to have significant implications for logistics companies, freight forwarders, shipping lines, airlines, and ports and drive growing demand across ocean freight, air cargo, warehousing, and customs services.

The Council of the European Union, representing the 27 member states, authorized the signing of the EU-Mexico Modernized Global Agreement (MGA) and an interim Trade Agreement (iTA) on May 11.

The deals are due to be signed at the first EU-Mexico summit in 11 years, scheduled for today, May 22, in Mexico City.

Mexican President Claudia Sheinbaum, European Commission President Ursula von der Leyen and European Council President António Costa are expected to attend.

Growth of Over 75% in Last Decade

In 2025, trade between the two economies was valued at over €86 billion: roughly €53 billion in exports and almost €34 billion in imports. The EU stands as Mexico's third-largest trading partner after the US and China, and its second-largest export market.

Mexico exports machinery, transport equipment, chemicals, mineral products, and metals and imports machinery, automotive products, chemicals, and industrial equipment from the EU.

Moreover, EU-Mexico trade has grown by over 75% in the last decade, with exports growing slightly more rapidly, at 92% versus 66% for imports.

More than 45,000 EU companies are expected to benefit from the new trade agreement.

Opening Up Markets, Diversifying Sourcing

Interviewed by AJOT on the prospect of closer and expanded trade ties between the EU and Mexico, Godfried Smit, Secretary General, of the European Shippers' Council, whose remit includes trade facilitation policy, noted:

“Trade agreements are always very important for the EU as they reduce customs duties and also decrease the often-underestimated administrative burdens. These can be costly, as well as adding complexity and unreliability to procedures which translate into significant delays at the borders.”

He continued: “From a business perspective, these agreements open up markets. For EU companies it is also very important that they diversify their sourcing as geopolitical tensions are very high at present and there is the risk of disruption to logistics.”

While the new trade deals will be subject to ratification by the Mexican Senate, by European institutions, and by all member states, the provisional entry into force for the commercial chapter is likely to be activated on a provisional basis in the coming months.

‘Positive Developments’

Nicolette van der Jagt, Director General of the European Association for Forwarding, Transport, Logistics and Customs Services (CLECAT), which represents the interests of more than 19.000 companies. employing in excess of one million staff, told AJOT that the trade body, in general, supports trade agreements that facilitate international trade.

“For freight forwarders and logistics service providers, such agreements can contribute to smoother customs procedures, greater regulatory cooperation and more predictable trading conditions, which are particularly important for SMEs involved in international supply chains. In that respect, the EU-Mexico Modernized Global Agreement and interim Trade Agreement are positive developments.”

However, Van der Jagt said given that CLECAT had, to date, not conducted detailed sector-specific assessment of the EU-Mexico agreement, she was unable to provide precise analysis regarding which business verticals may benefit most.

Geopolitical Uncertainty, Rising Protectionism

In a paper published earlier this month, entitled ‘EU-Mexico trade pact amid rising protectionism?’ Shruti Sasidharan, an analyst at Ti Insight, a consultancy specializing in research and data on the freight transport and logistics sector, emphasized that the new EU-Mexico trade frameworks come at a time when companies are increasingly diversifying supply chains amid geopolitical uncertainty, rising protectionism, and disruptions to global trade routes.

“Mexico is becoming more important as a manufacturing and export hub because of its strong industrial base and close proximity to the U.S. market. As a result, sectors such as automotive, electronics, machinery, and industrial manufacturing are expected to benefit the most.”

For the transport and logistics market, one of the key impacts will likely be an increase in freight volumes between Europe and Mexico, she observed.

For example, the reduction or removal of tariffs on industrial products, pharmaceuticals, transport equipment, and agricultural goods is expected to support higher trade flows.

“This could increase demand for ocean freight services between major European ports such as Rotterdam, Antwerp-Bruges, Hamburg, and Valencia, and Mexican ports, including Veracruz and Manzanillo.”

Near-Shoring Operations

Major European logistics providers are already increasing their focus on Mexico as companies diversify supply chains and expand near-shoring operations, Sasidharan highlighted.

In April 2025, Switzerland-based Kuehne+Nagel opened a new road logistics facility in Laredo, Texas, close to the Mexican border, to meet the growing demand for customs support between the US and Mexico.

Although the company stated the move was not directly linked to rising US protectionist policies, it explained that the site would help address increasing demand for cross-docking and customs brokerage services at the border.

Kuehne+Nagel’s facility also supports customers navigating the complexities of “near-shoring”, reflecting Mexico’s growing importance within North American and global supply chains.

In June last year, another European global logistics provider Geodis, opened a new office in the Mexican city of Guadalajara, which its country manager, Miguel Muñoz, described as marking “a significant milestone for our operations in the country, where we have had a presence for nearly 20 years.

“Not only are we able to expand our growing freight forwarding line of business in the region, but we are adding new logistics solutions to our product portfolio to best support our customers.”

Geodis also operates direct airfreight service from China and Hong Kong to Guadalajara and maintains key links to the port of Manzanillo, along with inland corridors to the US and Canada – routes that support near-shoring strategies for regional businesses.

‘Strategic Partner for Europe’

Sasidharan also pointed to the provision in the modernized EU-Mexico trade agreements which simplifies customs procedures and improves market access.

“This could encourage greater use of express delivery and faster transport services, benefiting air freight operators and airport logistics hubs on both sides of the Atlantic.”

Freight forwarders and customs brokers may also benefit from rising demand for trade management and customs support services as more companies expand operations between the EU and Mexico.

“Although the agreements still require further approval and implementation, they position Mexico as an increasingly strategic logistics and manufacturing partner for Europe within a more diversified global supply chain landscape, “she added.