Days before Donald Trump, the US president-elect, takes office, Mexico and the EU signed a revised trade pact Friday that they said will significantly boost trade and investment. Trump has promised to impose broad tariffs on Mexico and other trading partners.

The 27-nation bloc and Mexico have signed a new Global Trade Agreement that would lower Mexican tariffs on agri-food imports from Europe, remove several obstacles that would make it easier for European businesses to invest in Mexico, and increase Mexican exports of raw materials like lead, copper, zinc, antimony, and fluorspar, which is used in electronics.

According to a statement from the European Union, the revised agreement, which went into effect 25 years ago, also aims to promote strategic cooperation on important geopolitical concerns. 

“We have entered a new era in our strategic partnership with Mexico today. Our upgraded agreement shows the EU and Mexico united for freer trade and an open global economy," said Kaja Kallas, vice president of the European Commission, in a statement. Trump has threatened to apply tariffs of up to 25% on all Mexican imports, which could be a severe blow to both economies. The declaration comes only days before Trump returns to the White House. The potential losses from disrupted US-Mexico commerce could be lessened by a revised agreement with the EU, although trade between Mexico and the EU still only makes up a small percentage of Mexico's yearly trade with the US.

In 2023, trade between the US and Mexico totaled over $800 billion. In comparison, trade between Mexico and the European Union was $84 billion during the same year, according to the EU. Mexico's Economy Ministry has not yet commented on the updated agreement with the EU.