25 February 2025

The EU-Mexico Free Trade Agreement (FTA) represents a significant opportunity for European dairy manufacturers looking to expand into one of the world’s most dynamic markets. With a population of 131 million and a growing middle class, Mexico offers a promising market for high-quality dairy exports. By reducing tariffs and introducing duty-free quotas across various dairy categories, this agreement provides EU exporters with improved access and a foundation for market growth.

Key Dairy Opportunities Under the EU-Mexico FTA

Cheese

• Mexico's cheese imports have grown by 29% year-on-year. The FTA grants EU exporters a 25,000-tonne duty-free quota, comprising 5,000 tonnes for fresh and processed cheese and 20,000 tonnes for other cheese varieties. This offers European cheese producers’ better opportunities to enter and expand in the Mexican market.

Milk Powder (SMP/NFDM)

• Mexico imports approximately 335,000 tonnes of skim milk powder annually. With the FTA, EU suppliers can now access a 50,000-tonne duty-free quota, allowing for increased competitiveness with global suppliers.

Butter and Anhydrous Milk Fat (AMF)

• The demand for dairy fats in Mexico continues to grow, with annual imports of 4,000 tonnes of butter and 26,000 tonnes of AMF. The FTA introduces a 2,500-tonne duty-free quota, creating opportunities for EU producers to strengthen their presence.

Lactose and Whey

• Mexico’s lactose demand grew by 7% in 2024, reaching 42,000 tonnes. The agreement establishes a 13,000-tonne duty-free quota for lactose and other dairy preparations, offering EU manufacturers improved market access.

Preparing for the future

With the EU-Mexico Free Trade Agreement (FTA) poised to enhance export opportunities, European dairy manufacturers are well-positioned to benefit from structured and transparent market access. As global trade dynamics evolve, GDT offers a powerful tool for market entry, providing visibility among international buyers and a reliable mechanism for price discovery.

European dairy companies have long leveraged GDT Events as a trusted platform for international trade. Industry leaders such as Arla Foods, a cooperative spanning seven Northern European countries, and its subsidiary, Arla Foods Ingredients, a major whey and lactose supplier, actively participate. Belgium-based SOLAREC S.A. and Kerry Dairy Ireland, a producer of high-quality dairy ingredients, also utilise GDT Events to expand their reach and engage with global buyers.

Global Dairy Trade (GDT) connects EU dairy sellers with a diverse network of over 500 approved bidders from more than 70 countries. Through its auction platform, GDT facilitates seamless transactions for bulk dairy ingredients, ensuring sellers reach buyers who are actively seeking dairy products.