According to one Mexican official, it is expected to conclude a new free trade agreement with the EU by the end of February. The EU and Mexico intend to update a trade agreement that mainly covers industrial products with the objective of increasing agricultural products, services, investment and government procurement and includes provisions on labor standards and environmental protection.

Mexican negotiators have held talks in Brussels this week, after which both sides will resume their talks in Mexico next week.

The key challenge is the extent of opening up each other’s food and beverage markets such as Mexico's tequila, chicken and asparagus and Europe’s dairy products, and the EU requires recognition of geographical indications.

For Mexico, the agreement with the EU will be part of a strategy to reduce its dependence on the United States. The United States is the destination with nearly 80% of its exports. This situation has become even more urgent as President Trump threatened to abolish the North American Free Trade Agreement.