In mid-2016, Mexico began renegotiating its seventeen-year-old trade agreement with the European Union, the largest consumer of Mexican goods behind the United States and Canada. Earlier this month, representatives announced that they hoped to close the agreement before the end of this year. While the deal has been in the works for two years, both parties felt increased pressure to hasten their deliberation, as the new free market deal is seen as a defensive measure against the Trump administration, whose economic policies have become increasingly protectionist.

The deal signals to President Trump that other nations, regardless of previous social and economic relationships, are not afraid to leave the United States behind if it cannot commit to a robust trade deal that works for both parties. The Transatlantic Trade and Investment Partnership (TTIP), a proposed trade agreement between the EU and the U.S., was halted indefinitely after the 2016 presidential election due to Trump's America-first rhetoric and his hostility towards free-trade agreements. Activists within the EU also protested the agreement, claiming that the EU would need to lower its environmental, health, and safety standards to match those of their American counterparts―a fear that was only exacerbated by the United States' exit from the Paris Climate Accord.

The North American Free Trade Agreement (NAFTA) between the United States, Canada, and Mexico may also be in jeopardy, as Trump has repeatedly failed to commit to a tangible plan and threatened to walk out on the agreement entirely. Robert Lighthizer, the United States Trade Representative, expressed his concern that NAFTA may be on "thin ice" if an agreement is not reached within the next two or three weeks. Lighthizer emphasized that the Democrats are expected to make significant gains in the 2018 midterm elections in November, which may lead to a Democratic majority in Congress. Democrats have traditionally been less supportive of free-trade measures like NAFTA because of their detrimental impact on small businesses and American manufacturers.

The European Commission announced that nearly all goods traded between the EU and Mexico would , after the implementation of this agreement, be duty free and that both parties committed to implement environmental and health standards as outlined by the Paris Accord. The deal will primarily focus on agricultural and digital goods, services, and pharmaceuticals―for example, Mexico will slash tariffs on European dairy goods by 20 percent and increase their pork imports, while the EU will become a larger buyer of Mexican chicken and produce. Ildefonso Guajardo, the Mexican Economy Minister, asserted that this new deal would allow both sides better and more equitable access to products that may not have been as widespread prior to this agreement. The new deal will also allow each country to bid for government contracts within their partner country.

Mexico also agreed to a key EU demand for "geographical indications" for certain food and drink as a protective measure for specific agricultural produce. For example, the term "champagne" may only be applied to a sparkling white wine from the Champagne region of northern France. The U.S. has loathed this rule, and has lobbied Mexico for years not to accept it, as it would harm American agricultural workers who currently produce and sell products, such as wine and cheese, that would have to be marketed under a different name under the EU's GI rules.

On Monday, April 30th, Trump announced a delay on tariffs he had planned to impose on the EU, Canada, and Mexico in an attempt to buy time for trade partners to renegotiate trade deals in favor of the United States. While the results of these negotiations are not yet clear, the Trump administration should keep it mind that America's trade partners do not seem to be afraid to move on if the U.S. is unwilling to cooperate.