A majority of EU member states have given the final green light for a new "modernised" trade agreement between the EU and Mexico.

The Council of the EU adopted a decision today (Tuesday, July 14) to formally conclude the Interim Agreement on Trade (ITA) between the EU and the Latin American country.

It comes after MEPs in the European Parliament gave their backing to the agreement last week.

This new agreement will replace the current trade framework between the EU and Mexico, in place since 2000.

Mexico is the EU’s second-largest Latin American trading partner; while the EU is Mexico’s third-largest trading partner and second-largest export market after the US.

Similar to the EU-Mercosur Trade Agreement, this latest trade agreement has been separated out from a wider political agreement.

As trade is an area of "exclusive competence" of the EU, the trade deal only needed to be ratified by a qualified majority of member states, rather than needing unanimous ratification by all member states and their respective parliaments.

Commenting on the trade agreement, Minister for Foreign Affairs and Trade Helen McEntee (who chairs meetings of EU trade ministers during Ireland's presidency of the council), said: "At a time of growing geopolitical uncertainty, deepening ties with trusted partners is more important than ever.

"I am very ambitious for EU Trade policy over the next six months, and will work to strengthen our trade relationships and diversify our markets," Minister McEntee added.

The council said that the agreement will improve market access for EU exporters by eliminating most remaining customs duties, and will expand opportunities for services, investment and public procurement, and reducing barriers to trade.

The agreement is also set to strengthen the protection of European geographical indications (GIs), which includes a wide range of EU food products, such as Irish Grass-Fed Beef.

568 EU geographical indications for traditional agri-food products will be protected in Mexico, making it illegal to sell imitations of those regional food and drink specialities in Mexico.

Mexico is expected to conclude its own process for ratifying the trade deal after the summer.

The deal well then come into force two months after the country has notified the EU that its internal ratification procedure is complete.