Today, 16 April, the government decided to support the signing of the European Union–Mexico Partnership Agreement and the interim trade agreement. These agreements will open the door for Estonian companies to a market of more than 130 million people.
“Despite a rather volatile geopolitical environment, new opportunities have also emerged. The EU–Mercosur free trade agreement will be applied provisionally from 1 May, a fresh agreement has also been concluded with India, and we are now moving forward with Mexico. All of this creates new opportunities for Estonian and other European businesses in major growth markets and strengthens the rules-based international order,” said Foreign Minister Margus Tsahkna.
Mexico is the second-largest economy in Latin America and the EU’s second most important export destination in the region. In 2024, EU exports to Mexico reached €82 billion. The new agreement will eliminate tariffs on almost 99% of goods and remove approximately 95% of Mexico’s tariffs on EU agricultural products. It will also simplify regulations and customs procedures.
According to the foreign minister, the agreement provides better access to a previously underutilised but rapidly growing market, supporting exports, investment and the competitiveness of our companies. “Mexico is also a large country on a global scale, with a growing middle class, offering opportunities for IT services, industrial goods and the food industry. While we currently export goods worth nearly €90 million to Mexico, the removal of tariffs will help us increase that figure,” Tsahkna explained.
He added that free trade and partnership agreements also have broader political and strategic significance. “This strengthens Estonia’s bilateral relations with Mexico and reinforces the European Union as a credible, values-based partner. It also supports our economic security. Mexico is an important hub in European companies’ production and supply chains, particularly for critical metals and minerals,” Tsahkna said.
For example, Mexico possesses significant lithium resources, which are essential for, among other things, the battery and electronics industries.
The Partnership Agreement falls under the shared competence of the EU and its member states and must therefore be signed on behalf of Estonia and submitted to the Riigikogu for ratification. The interim trade agreement falls under the EU’s exclusive competence and can enter into force earlier, providing businesses with quicker access to new market opportunities.
Additional information
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