Germany’s VDA Hails EU-Mexico Trade Deal as Economic Milestone

23 Jan, 2025

The conclusion of negotiations on the EU-Mexico trade agreement has been welcomed by Germany’s automotive industry association, the VDA, as a crucial step in promoting global trade and combating rising protectionism. The updated agreement, announced by the European Commission, marks a significant milestone for EU-Mexico trade relations, particularly benefiting the auto and agri-business sectors.

Germany’s VDA emphasized the importance of this deal for the German economy, where 70% of automotive jobs depend on exports. Mexico holds a pivotal role as an automotive hub, with German manufacturers operating over 330 locations in the country and setting a production record of 716,000 cars in 2023. Mexico’s inclusion in the USMCA free trade area further strengthens its position as a key production base for vehicles sold across North America.

The trade deal also underscores Mexico’s potential as an export market for German automakers, with 21,000 cars exported from Germany to Mexico in 2023. VDA President Hildegard Müller highlighted the agreement’s significance in enabling the EU to maintain its economic strength and global influence while addressing climate change through sustainable industrial transformation.

The VDA also stressed the need for swift ratification of the agreement and urged the EU to accelerate trade negotiations with other regions, including India, ASEAN nations, and Australia, to foster global trade partnerships.

This modernized agreement reflects the shared commitment of the EU and Mexico to strengthen economic ties and support industries vital to their economies. The deal is seen as a countermeasure to increasing protectionist policies, providing a platform for long-term growth, innovation, and global collaboration.

Germany’s automotive sector, with its reliance on exports, stands to benefit significantly from the enhanced trade framework, reinforcing Mexico’s importance as a manufacturing and export hub for German automakers in the Americas.

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