“The conclusion of negotiations to update the EU-Mexico trade agreement is good news for the entire European economy, and especially for Germany as an export country. In the German automotive industry, around 70% of jobs depend on exports. This is the basis of our prosperity.

The conclusion towards a modernization of the agreement is also an important political signal – especially in times of increasing protectionism. It is now important that the ratification process of the agreement is set in motion quickly and completed as soon as possible.

Mexico is a very important location for the German automotive industry. German automotive suppliers have more than 330 locations in Mexico. In addition, German automobile manufacturers have their own plants there, where a new production record of 716,000 cars was set in 2023. This made Mexico the most important production location for German manufacturers in America, behind the USA and ahead of Brazil and Argentina. Since Mexico is part of the USMCA free trade area, it is also important as a factory location for vehicles sold in the USA or Canada. In addition, Mexico still offers great potential as an export market: around 21,000 cars were exported from Germany to Mexico in 2023.

In general, only a strong and export-capable industry will be able to master the major challenges of the transformation and thus make a decisive contribution to climate protection. Only with economic strength the EU can play an important role on the world stage. Trade agreements provide an important basis for this. Brussels should conclude further trade agreements and continue to push ahead with negotiations with India, the ASEAN countries and Australia, among others.”

SOURCE: VDA