It’s not Mexico that needs a trade deal with Europe, it’s the opposite.
For almost two decades Europe has been investing heavily inside Mexico, particularly noted in the auto industry, as they positioned themselves to take advantage of NAFTA and later the USMCA as an entry to the U.S. market.
European auto companies spent billions on assembly plants in Mexico, where they could ship EU manufactured component goods to be assembled into NAFTA/USMCA compliant vehicles. As President Trump and USTR Lighthizer begin focusing on eliminating the USMCA trade agreement in favor of two bilateral deals (U.S-Canada and U.S-Mexico), Europe now needs to protect prior investment.
The prior Mexico-EU trade agreement has existed since 2000 (NAFTA timeframe). In 2025 they agreed to a revised Free Trade Agreement (FTA) and finalized the terms and conditions yesterday.
MEXICO CITY, May 22 (Reuters) – Mexico and the European Union signed a long-stalled free trade agreement on Friday as they seek to decrease dependence on the U.S. and partially insulate themselves from U.S. President Donald Trump’s tariffs.
The accord, which they reached broad agreement on in 2025 but have delayed signing, expands a Mexico-EU trade accord from 2000, which covered only industrial goods. The new pact adds services, government procurement, digital trade, investment and farm produce.
Mexico’s President Claudia Sheinbaum, European Commission President Ursula von der Leyen and European Council President Antonio Costa are to sign the deal in Mexico City in their first summit in over a decade.
“This agreement is a true geopolitical statement,” Costa said on Friday, shortly after signing the agreement. “With the modernized global agreement, we are better prepared to face the challenges of our time.”
[…] Mexico’s economy ministry estimates the new agreement could increase Mexican exports to the EU from around $24 billion a year to $36 billion by 2030. The EU exports around $65 billion in goods annually to Mexico.
Trade between Mexico and the EU has increased 75% in a decade, dominated by transport equipment, machinery, chemicals, fuels and mining products.
The new deal provides duty-free access for almost all goods including farm products such as Mexican chicken and asparagus and European milk powder, cheese and pork, albeit with some quotas. (read more)
I love how Reuters uses the term “transportation equipment” to cloud the actual content, EU vehicle components for auto assembly. Sometimes you just have to snicker at the silliness of it all.
In essence, in order for the EU to retain their investment status, they are telling Mexico they will import more chickens, pork, dairy and row crops. All of it subject to “quotas” established as an outcome of analysis about what bureaucrats in Brussels will tell EU farmers they have to accept.
A conversation akin to, ‘we’re going to buy more vegetables in order to keep our auto manufacturing systems in place.’ However, once those EU vehicles like BMW are assembled in Mexico, then what? It’s not like Mexican workers are going to be running to the showrooms to purchase exotic cars.
All of these maneuvers are designed around one central strategic intent, keep the auto assembly close to the USA market and then pay Mexican officials through roots and vegetables to negotiate the best bilateral trade agreement with the United States that keeps European investment alive. Europe needs Mexico to think about -and represent- their interests when Mexico is negotiating a bilateral with Trump.
Oh dear God what next from these idiots
Because Trump is so brilliant, he makes everyone else look really stupid.
European Union is akin to a parasite. Just pay your fair share for once.
EU are socialists, so never going to happen
Akin to the Somalies decades and still on the dole
They cant. Their economies are vrippled by their green zero carbon suicide pact.
President Trump sees through the stupid games the EU is playing.
“The only winning move is not to play”
If even I can, President Trump sure as hell can! LOL
Thank you, GOD, for this president. 🙏💕🇺🇲
Americans are done with the free-loading lopsided deals. Time for the others to carry their own weight! When do “we” start getting those benefits??? POTUS is becoming the equalizer! Food and gas prices are escalating yet! My time running around has seriously diminished! Summertime is here and I’m dead tired of this loooong winter!
So the EU has been shipping their industrial production to places like Mexico (de-industrialization), which surely has not made European industrial workers very happy, but a lot of money comes back to the elites who control all of that. And now, to protect that “investment” and keep the money flowing, they are going to start importing many farm products from outside Europe. They are already doing all they can to reduce the amount of farming because of their lunatic “climate” obsession, which has been enraging farmers all over Europe, but especially in western Europe, and now they are going to hurt and enrage those farmers even more!
Europe is in serious decline by every meaningful metric, and all their “leaders” can do is push even more decline! This is all just really brilliant. The real decline in Europe, driving all the rest, has been in the quality and intelligence of their leaders. Nothing but dummies.
The Europeans are forcefully shutting down farms so as to sieze land to build towns for the millions of their imported muslims. It’s all part of the globalist agenda.
“They are already doing all they can to reduce the amount of farming because of their lunatic “climate” obsession, which has been enraging farmers all over Europe, but especially in western Europe, and now they are going to hurt and enrage those farmers even more!”
Clearly those silly simpleton farmers simply don’t know what’s best for them. All of that farming and industrialization leads to *cough, cough* “global warming.” So…..bear with me here, since Mexico already has a much, much warmer climate than does the elite’s blessed Europe, it just makes sense to move all of the heavy industry and farming to the already globally warmed Mexico! (/)
These are reflexive and not proactive moves by the EU. I think the Trump administration is already several steps ahead. It’s entertaining to see it unfold.
“Si, senor Gringo! Just pay $40,000 for this pile of fruits and vegetables and we will throw in the German transportation device for free! It’s like a luxury shopping cart!”
FTA:
“As President Trump and USTR Lighthizer begin focusing on eliminating….”
Greer?
The EU will wind up paying the Chi-Comms to build German cars in Mexico so that they can get carbon credits in Brussels.
Great punch line or picture at the end. Thank you Sundance
Bet all those Muslims over there will enjoy the increase in pork. One can never have too much pork.
After the (not-produced-in-USA) BMW tariff, that Geländewagen produced in Alabama won’t look so bad in comparison.
What a horrid trio!
They seem to be getting a bit too close to our backyard! Wait til all the cartel thugs decide it’s time for a new set of wheels!
First Mexico and the EU are for suprise come June. 🤣 in July Con-man Carney get to open his Surprise 😮 what is this the Donald strikes again!😎
3 stooges. More windmills for sure. The kind that when they malfuction they just abandon. Dumb, dumber and dumbest.
This will be another EU blunder.
in college i had a place in playas de tijuana, bout a block away from the bull ring on the ocean
because of mexico’s ‘austerity program’, citizens weren’t allowed to own or license any ‘luxury’ vehicles.
no caddys, beemers, benzos – nada
if you did happen to see a high dij car sporting a mx plate it was best to give that hombre a wide berth
Look at them, grinning like three retards eating bugs. The US is not obligated to agree to anything the globalists want. Putting off any deal for a year or two might be just the thing to force our domestic globalists to move manufacturing back into the US.
Globalists colluding together
I’m curious to read/hear some deep analysis of how this changes Mexico’s bargaining position (and goals for) when they sit down to negotiate with the USA.
I’m also curious who benefits most from this deal: the auto industries of Europe, or financial interests in Europe?
My best podcast fodder question would be: who has more influence over the drug/human trafficking cartels in Mexico–Sheinbaum, or European globalist enforcement agents?
Now that the gloves are off and masks have been dropped, the early picture I’m getting is that the EU is hustling to bracket the US geographically and establish counter market presences within Fortress America.
That’s a totally amateur take, but symmetry (replacing Cuba with northern & southern border antagonists) almost always indicates design & function with some intent.
These are the same questions I’ve had in my own mind. I too think the globalists are attempting to encircle and isolate America as an interim economic and political strategy until their UniParty globalist minions can regain power in the DC Swamp.
Will Mexico join the EU and send money to Ukraine?
Wow. They are so clever. I bet that PDJT’s Trade Team won’t even pick up on what they are doing.
Part of the US-MX trade deal should include MX being forced to take back all of their citizens (and anchor babies) from the USA and putting them to work in all of the factories that are being built in MX.
Yep playing a pawn or two.