Mexico and the European Union are announcing a revamped agreement that they said would boost trade and investment, amid Trump's tariff threats.

The European Union and Mexico secured a fresh trade deal on ahead of U.S. President-elect Donald Trump, who has threatened both regions with steep tariffs on exports, taking office next week.

BRUSSELS (Reuters) - The European Union and Mexico reignited a stalled upgrade to their free trade deal on Friday, just days before the return to office of U.S. President-elect Donald Trump, who has threatened both sides with tariffs.

The European Union and Mexico agreed to a revamped free-trade agreement, just as both are under pressure from President-elect Donald Trump, who has threatened them with a new round of tariffs.

Mexico and the European Union on Friday announced a revamped trade agreement that they said would substantially increase trade and investment, days before the inauguration of US President-elect Donald Trump,

The EU has concluded negotiations with Mexico on an updated trade agreement, the European Commission announced in a press release on Friday. Mexico is the EU's second largest trading partner in Latin America after Brazil.

The agreement aims to boost both trade and economic security by de-risking supply chains, securing a sustainable supply of critical raw materials and tackling climate change, according to a EC statement on Friday.

The European Union and Mexico link arms to fend off the impact of tariffs threatened by incoming U.S. President Donald Trump.