Before Donald Trump returned, the EU and Mexico struck a trade deal.

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Before Donald Trump returns to the White House, the European Union and Mexico have agreed a long-delayed trade deal to reduce their dependence on the United States.

After nine years of negotiations, the two sides said on Friday that they would revise their existing agreement. The announcement comes weeks after Trump threatened tariffs and followed a similar trade deal between the European Union and the South American trade bloc. Mercosur In December.

European Commission President Ursula von der Leyen said: “This remarkable agreement ensures that open and rule-based trade contributes to prosperity and economic security, as well as climate action and sustainable development.”

EU-Mexico trade in goods will reach 82 billion euros in 2023, and two-way trade in services will reach 22 billion euros in 2022.

Mexico will eliminate tariffs of up to 100 percent on EU exports, including cheese, poultry, pork, pasta and jams and marmalades, as well as chocolate and wine. Mexican producers cannot use protected names for more than 500 products, including champagne, Parma ham and Rioja wine.

The deal allows Mexico to export electric vehicles to the EU duty-free, as long as they contain at least 60 percent of components made in Mexico or the EU.

This makes it difficult for China to try to use Mexico as a manufacturing base for EU-connected electric vehicles, as they pay the standard 10 percent tariff if they use Chinese batteries. “Companies would be much better off locating in Europe . . . rather than China,” an EU official said.

The EU will increase minimum tariff quotas for Mexican exports such as beef, poultry and ethanol.

The two sides They reached an initial agreement to extend the 20-year deal in 2020, but the decision has been delayed in part by Mexico’s refusal to open its energy market to EU companies. President Claudia Schönbaum’s left-wing nationalist Morena party has reversed the wide opening of markets, causing new private investment in the sector to collapse. Now in February, she said that she will present the much-anticipated new regulations for energy investment.

EU companies will receive the same treatment as other Mexican trading partners, including the US and South Korea, the official added.

Mexico is one of the most vulnerable countries in the world The threat of Trump’s tariffsExporting more than 80 percent to the United States. This agreement will help provide options for exporters if the new president implements the 25 percent tariff promised, but it is an important sign.

“It’s very positive. . . It gives certainty to investors because it includes safeguards,” said Carlos Serrano, chief economist of BBVA Mexico. This is a vote of confidence in Mexico and shows that Mexico wants to align with the US and Europe.

ExplainTrade consultant Dmitry Grozubinsky said that “tough times” pushed the two sides to resolve the final issues.

As uncertainty looms over the Trump administration and its allies, stalwarts like Mexico and the European Union are suddenly getting concessions to let the paint dry on their deals before the international tables begin to turn.

The agreement, which includes investment provisions, will help boost the EU’s exports in key services such as financial services, transport, e-commerce and telecommunications and effectively protect intellectual property rights, the EU said.

It also includes legally binding commitments on labor rights, environmental protection, climate change and responsible business practices, through a dispute resolution process.

The deal still needs to be signed and approved by the EU and Mexican lawmakers. European farmers may oppose the Mercosur agreement and pressure governments not to ratify the deal with Mexico.