Diplomacy
EU and Mexico finalize trade deal ahead of Trump’s return

The EU and Mexico have agreed on a long-delayed trade deal as they seek to reduce their dependence on the US, hours before Donald Trump returns to the White House.
After nine years of negotiations, the two sides announced on Friday that they would modernize their existing agreement. The announcement came just weeks after Trump threatened tariffs and follows a similar trade deal signed in December between the EU and the South American trade bloc Mercosur.
“This landmark agreement proves that open, rules-based trade can ensure our prosperity and economic security, as well as climate action and sustainable development,” said European Commission President Ursula von der Leyen.
EU-Mexico trade in goods reached €82 billion in 2023, while two-way trade in services amounted to €22 billion in 2022.
Under the agreement, Mexico will eliminate tariffs of up to 100% on EU exports, including cheese, poultry, pork, pasta, jams, marmalades, chocolate, and wine.
Mexican producers will no longer be able to use the protected names of more than 500 products, such as champagne, Parma ham, and Rioja wine.
The agreement will allow Mexico to export duty-free electric vehicles to the EU if they contain at least 60% Mexican or EU-made components by value. This will make it more difficult for China to use Mexico as a production base for electric vehicles exported to the EU, as they will pay a standard 10% tariff if they use Chinese batteries.
“Companies will prefer to source from Europe rather than China,” an EU official told the Financial Times (FT).
The EU will also increase low-tariff quotas on Mexican exports such as beef, poultry, and ethanol.
The two sides had reached a preliminary agreement to extend the 20-year agreement in 2020, but the decision was delayed in part because of Mexico’s reluctance to open its energy market to EU companies.
EU companies will be treated the same as Mexico’s other preferential trading partners, including the US and South Korea, the official added.
Mexico, which exports more than 80% of its goods to the US, is one of the most vulnerable countries in the world to Trump’s tariff threats. The agreement with the EU could help provide exporters with alternatives if the new president implements his promised 25% tariffs.
Carlos Serrano, chief economist at BBVA Mexico, said: “This is very positive because it will give certainty to investors, as it will include protection mechanisms. It’s a vote of confidence in Mexico, and it also shows that Mexico wants to be aligned with the US and Europe.”
Dmitry Grozoubinski of the consultancy ExplainTrade said “turbulent times” had pushed the two sides to resolve the last remaining issues.
The EU stated that the deal, which also includes investment provisions, would help boost the bloc’s exports of services in key areas such as financial services, transport, e-commerce, and telecommunications, while also protecting intellectual property rights more effectively.
The agreement also includes legally binding commitments on labor rights, environmental protection, climate change, and responsible business conduct, overseen by a dispute settlement procedure.
The agreement still needs to be signed and then ratified by EU and Mexican lawmakers.
European farmers have protested against the Mercosur agreement and are likely to pressure their governments not to ratify the agreement with Mexico.
Diplomacy
Armenia signals potential complete withdrawal from CSTO

Armenian Deputy Foreign Minister Vahan Kostanyan announced that Yerevan might decide to withdraw entirely from the Collective Security Treaty Organization (CSTO) if member states fail to “demonstrate a clear political stance” regarding Azerbaijan’s actions. Kostanyan emphasized that Armenia is no longer making insinuations but is speaking very openly.
According to the Novosti-Armenia news agency, Kostanyan stated, “Ultimately, if our partners in the CSTO, including the Russian Federation, do not make the political statements that were mentioned several years ago after the aggression against the sovereign territory of the Republic of Armenia, then Armenia will make a final decision.”
The Deputy Minister also underscored that Armenia, as a sovereign state, will determine the right time for its next steps.
Membership was frozen
Relations between Armenia, Russia, and the CSTO deteriorated following the conflicts in Nagorno-Karabakh, after which Yerevan formally requested support from its allies.
Following this process, Prime Minister Nikol Pashinyan repeatedly criticized the CSTO for not assisting Yerevan.
Pashinyan described the organization as a “bubble alliance,” claiming it was “planning a war” against Armenia alongside Baku.
Last February, Prime Minister Pashinyan announced that Armenia had frozen its participation in the CSTO. By May, the Armenian Ministry of Foreign Affairs reported that the country would refuse to finance the organization’s activities.
Intelligence report points in the same direction
In January of this year, a public report released by the Armenian Foreign Intelligence Service stated that the country has no intention of returning to full participation in the CSTO in the near future.
The report noted, “We find it highly unlikely that the reasons that led to Armenia suspending its membership will change in 2025. Based on this situation, the organization’s prestige continues to be seriously questioned and has become a ’cause for reflection’ for other member countries.”
Diplomacy
BRICS internal trade volume hits the $1 trillion mark

Kirill Dmitriev, Special Representative of the President of the Russian Federation and CEO of the Russian Direct Investment Fund (RDIF), announced that the internal trade volume among BRICS countries has reached $1 trillion.
In a statement on his Telegram channel, Dmitriev noted that surpassing this significant milestone confirms the strengthening of economic ties between member states and the bloc’s growing role in shaping the new global economic architecture.
He also emphasized that Russia continues to strengthen trade relations, particularly through the BRICS Business Council, in line with the directives of President Vladimir Putin.
BRICS’ share will continue to grow, Putin says
During a plenary session at the St. Petersburg International Economic Forum on June 20, Russian President Vladimir Putin recalled that at the beginning of the 21st century, BRICS countries accounted for only one-fifth of the global economy, whereas today this figure has reached 40%.
The Russian leader stated that this share will continue to grow, describing it as a “medical fact.” According to Putin, this growth will primarily be driven by the countries of the Global South.
In April, Maxim Oreshkin, Deputy Chief of Staff of the Presidential Administration of Russia, also said that the BRICS countries, operating on principles of consensus, have become a key force in the world economy.
BRICS expansion agenda
Initially composed of five countries—Brazil, Russia, India, China, and South Africa—BRICS expanded in 2024 with the inclusion of the United Arab Emirates (UAE), Iran, Ethiopia, and Egypt.
In January of this year, Indonesia became the bloc’s tenth full member.
Diplomacy
Xi Jinping to miss BRICS summit in Rio for the first time

Chinese President Xi Jinping will not attend the upcoming BRICS summit in Rio de Janeiro next week.
According to multiple sources cited by the South China Morning Post on Tuesday, this marks the first time Xi will miss the gathering of leaders from major emerging economies.
Officials familiar with the matter stated that Beijing informed the Brazilian government of a scheduling conflict. Premier Li Qiang is expected to lead the Chinese delegation in Xi’s place, a similar arrangement to the 2023 G20 summit in India.
Chinese officials involved in the preparations suggested Xi’s absence is due to his two meetings with Brazilian President Luiz Inácio Lula da Silva within the past year. The first occurred during the G20 summit and a state visit to Brasília last November, while the second took place at the China-CELAC forum in Beijing this May.
Xi has never before missed a BRICS summit. In 2023, he was scheduled to deliver a speech at the meeting in South Africa but, at the last minute, sent Commerce Minister Wang Wentao instead. Beijing provided no official explanation for the change.
During the COVID-19 pandemic, Xi participated in BRICS meetings virtually, with Russia hosting in 2020 and China in 2021.
On Tuesday, the Brazilian Foreign Ministry told the Post it “would not comment on the internal deliberations of foreign delegations.” The Chinese embassy in Brazil did not immediately respond to requests for comment.
However, Chinese Foreign Ministry spokesman Guo Jiakun told the Brazilian newspaper Folha de S.Paulo, “information regarding participation in the summit will be shared at the appropriate time.” Guo added that China supports Brazil’s BRICS presidency and aims to “promote deeper cooperation” among member nations. “In a volatile and turbulent world, the BRICS countries are maintaining their strategic resolve and working together for global peace, stability, and development,” he said.
In Brasília, officials have not concealed their disappointment regarding Xi’s absence. A source informed the Post that Lula had traveled to Beijing in May as a “show of goodwill” and had hoped “the Chinese president would reciprocate the gesture by attending the Rio summit.”
There was also speculation that Lula’s invitation to Indian Prime Minister Narendra Modi for a state dinner after the BRICS summit may have influenced Beijing’s decision, as Xi might have been “perceived as a supporting actor” at the event.
Lula’s special adviser for international relations, Celso Amorim, met with Chinese Foreign Minister Wang Yi in Beijing, where he clearly expressed Brazil’s desire to host Xi. “I told them, ‘BRICS without China is not BRICS,'” Amorim stated, recalling that then-President Hu Jintao attended the first BRICS summit in Brazil despite a major earthquake in China at the time. “He only stayed for one day, but he came.”
Amorim emphasized the particular importance of Xi’s attendance in the current global context, citing the “US withdrawal from the Paris Agreement and the World Health Organization” as a “violation of international rules.”
Premier Li is expected to arrive in Brazil next weekend for the summit, which is scheduled for July 6 and 7 in Rio.
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