— Mexican President Claudia Sheinbaum and German President Frank-Walter Steinmeier met in Cancún to deepen trade and investment ties, with Steinmeier declaring German companies are in Mexico “to stay”
— Both leaders endorsed the EU-Mexico trade agreement expected to be signed in May, which would expand access to the EU’s 450-million-consumer market
— The visit comes as both countries face U.S. tariff pressure, with Steinmeier contrasting Washington’s “hard demands” against the shared commitment to multilateralism
Mexico and Germany are tightening their economic partnership at a moment when both countries face pressure from Washington. President Claudia Sheinbaum and German President Frank-Walter Steinmeier met Thursday at the Mayan Museum in Cancún, pledging to strengthen bilateral investment and fast-track a modernized trade agreement between Mexico and the European Union. The Rio Times, the Latin American financial news outlet, reports that this Mexico Germany trade push reflects a broader strategic pivot by both nations.
Steinmeier, wrapping up a five-day Latin American tour that included stops in Panama and Guatemala, told the joint press conference that German business is in Mexico for the long term. He cited more than 2,100 German companies operating in the country, generating 300,000 direct jobs and roughly two million indirect positions.
EU-Mexico Trade Deal on the Horizon
The centerpiece of the meeting was the updated EU-Mexico Global Agreement, which Sheinbaum said has been fully negotiated and is expected to be signed around May. The modernized deal would replace a framework dating to 2000 and open new channels for agricultural exports, industrial goods, and services in both directions.
Germany is the EU’s second-largest investor in Mexico and its fifth-largest globally. Bilateral trade reached $27.3 billion in 2025, representing more than 30% of Mexico’s total commerce with the European bloc. Earlier reporting detailed how U.S. tariff threats have accelerated Mexico’s European trade diversification.
For Mexico, the timing is strategic. The agreement would give Mexican exporters preferential access to an EU market of 450 million consumers at precisely the moment when U.S. tariffs are squeezing key sectors including automobiles, steel, and aluminum.
A Shared Message on Multilateralism
Both leaders used the Cancún meeting to signal alignment on the international order. Sheinbaum said the two countries agreed to strengthen multilateral organizations and defend a rules-based system built on peace and cooperation for development.
Steinmeier was more direct. He warned that borders, territorial integrity, and sovereignty are being questioned around the world, and thanked Sheinbaum for Mexico’s commitment to international law — a clear reference to the war in Ukraine and Iran. He contrasted that shared vision with what he called Washington’s “hard demands,” adding that both nations must live with American pressure but need not agree with it.
Mexico Germany Trade in a Tariff Era
The diplomatic warmth serves concrete economic interests on both sides. Germany needs stable manufacturing platforms outside the EU as its own economy stagnates, and Mexico needs trading partners beyond the United States, which still absorbs roughly 80% of Mexican exports. Volkswagen’s Puebla plant alone produced 336,000 vehicles in 2025.
The visit also overlapped with the EU’s broader push to finalize trade agreements across Latin America. The Mercosur-EU deal entered provisional application on March 11, and the EU-Mexico agreement would extend Europe’s hemispheric trade architecture further north.
World Cup Diplomacy
Sheinbaum closed the press conference with an invitation. With the FIFA World Cup opening in Mexico in fewer than 100 days, she assured Steinmeier that all German visitors would be welcomed safely in Guadalajara, Mexico City, and Monterrey.
The security pledge carries weight. Steinmeier’s visit was originally planned for Mexico City but was relocated to Cancún due to strikes, and Germany’s Konrad Adenauer Foundation recently flagged the country’s security situation as a concern for foreign investors. Sheinbaum is betting that a successful tournament will reinforce the same message Steinmeier delivered: that Mexico remains a safe, long-term bet for international capital.