MEXICO CITY, June 10 -- Visiting German Chancellor Angela Merkel said on Saturday her country will push to update an existing trade agreement between Mexico and the European Union (EU) before the end of the year.

Taking part in a bilateral business event during her two-day state visit, Merkel said Mexico is an important trade partner for Germany, and both countries are committed to the principles of free, fair and equal trade.

Negotiations are currently underway between Mexico and the European Union to update a trade deal signed in 1997 and put in effect in 2000, but they appear to be dragging.

"We want to do it as quickly as possible. Germany will advocate to conclude this modernization by the end of the year," said Merkel, speaking at an event entitled "Germany and Mexico: Partners on the path to industry 4.0."

She also addressed the controversial border wall U.S. President Donald Trump wants to built to keep out undocumented Mexican migrants, saying immigration is a complex issue that requires a more nuanced solution.

Questioning the effectiveness of a border wall in curbing illegal migration, Merkel said "it is an enormous challenge, but I don't think that simply improving border controls will be able to resolve the problem."

Europe is also grappling with an influx of refugees fleeing wars and poverty, said Merkel, noting any successful strategy to limit migration needs to tackle the reasons people are being driven from their homes.

Some 1,900 German companies have operations in Mexico, generating 150,000 high-quality jobs, said Merkel, adding Mexico will be the guest country at next year's Hannover Messe, the world's leading industrial technology trade fair.

Mexican President Enrique Pena Nieto said Mexico will continue to promote free trade and pursue free-trade agreements with Germany and the EU.

"That will guide all our trade negotiations, including the one we are undertaking with the European Union and North America," said Pena Nieto.

MEXICO CITY, June 10 -- Visiting German Chancellor Angela Merkel said on Saturday her country will push to update an existing trade agreement between Mexico and the European Union (EU) before the end of the year.

Taking part in a bilateral business event during her two-day state visit, Merkel said Mexico is an important trade partner for Germany, and both countries are committed to the principles of free, fair and equal trade.

Negotiations are currently underway between Mexico and the European Union to update a trade deal signed in 1997 and put in effect in 2000, but they appear to be dragging.

"We want to do it as quickly as possible. Germany will advocate to conclude this modernization by the end of the year," said Merkel, speaking at an event entitled "Germany and Mexico: Partners on the path to industry 4.0."

She also addressed the controversial border wall U.S. President Donald Trump wants to built to keep out undocumented Mexican migrants, saying immigration is a complex issue that requires a more nuanced solution.

Questioning the effectiveness of a border wall in curbing illegal migration, Merkel said "it is an enormous challenge, but I don't think that simply improving border controls will be able to resolve the problem."

Europe is also grappling with an influx of refugees fleeing wars and poverty, said Merkel, noting any successful strategy to limit migration needs to tackle the reasons people are being driven from their homes.

Some 1,900 German companies have operations in Mexico, generating 150,000 high-quality jobs, said Merkel, adding Mexico will be the guest country at next year's Hannover Messe, the world's leading industrial technology trade fair.

Mexican President Enrique Pena Nieto said Mexico will continue to promote free trade and pursue free-trade agreements with Germany and the EU.

"That will guide all our trade negotiations, including the one we are undertaking with the European Union and North America," said Pena Nieto.