This chapter argues that the EU-Mexican governance structure established in the late 1990s incorporated liberal values, as it was founded on mutual understandings about open markets, free trade, and external assessment of democracy and human rights. Over time, these foundational liberal ideas have faced challenges, leading to a disconnect between the institutions and how the actors involved view them. This has weakened their legitimacy and, thus, reduced their efficacy. Adhering to rules and regulations and continuing to work together have gotten increasingly challenging in recent years. Consequently, political and sectoral dialogues were relatively de-institutionalized, and the signing of the modernized Association Agreement, negotiated between 2016 and 2020 has been delayed.