Commerce Minister Michael Damianos on Monday hailed the European Union’s imminent signing of a new interim trade agreement with Mexico, describing it and the establishment of a more general strategic partnership with the country an “important milestone”.

“By moving forward with these agreements, we are deepening our cooperation with a trusted partner and advancing the EU’s broader agenda to diversify its global trade relationships,” he said.

He added that both agreements will “create new opportunities for European businesses and economic operators, helping them access a dynamic market, while at the same time safeguarding our high standards and protecting the EU’s key interests”.

“At a time of growing uncertainties and protectionist pressures, they also reinforce our shared commitment to sustainable development and to an open, rules-based trading system,” he said.

The Council of the EU explained that the interim trade agreement will “benefit more than 45,000 EU companies exporting to Mexico”.

In specifics, it said that the deal will “eliminate high tariffs” on what it described as “key EU exports” to Mexico, including agrifood products, while also improving export conditions for sectors producing machinery, pharmaceuticals and transport equipment.

“It will also ensure the protection of hundreds of European geographical indications, safeguarding distinctive regional food and drink products on the Mexican market,” it said.

Additionally, it said, the agreement will enhance the level of cooperation between the EU and Mexico regarding “critical raw materials”, while also including new rules on customs and trade facilitation, intellectual property protection, public procurement, digital trade and competition.

It also said the deal includes provisions “ensuring a level playing field between EU and Mexican companies” and a “robust chapter” on the matter of trade and sustainable development, which includes “binding commitments on labour rights, environmental protection and climate action”.

In addition to the interim trade agreement, the EU and Mexico also agreed to sign a “political, economic and cooperation strategic partnership agreement”, which the Council of the EU said will establish “a modern, comprehensive and legally binding framework” for relations between the two.

“The agreement strengthens the strategic partnership between the parties by enhancing cooperation across a wide range of areas, including security, justice, sustainable development, climate change, digital transformation and human rights,” it said.

It added that the agreement “reaffirms shared values such as democracy, the rule of law, multilateralism and the protection of fundamental rights as essential elements of the partnership”, while also providing “for regular high-level dialogue on human rights, security and justice, as well as measures to prevent and combat corruption”.

Both agreements are expected to be signed at the EU-Mexico summit on May 22, with the European Parliament to be asked to ratify both agreements, and each EU member state asked to ratify the strategic partnership.