During Merkel's visit she was expected to defend democracy and cooperation, and strengthen trade and investment ties with Mexico.
German Chancellor Angela Merkel said on Friday that she was concerned about the escalating situation in the Gulf, and called for the regional powers to work together to defuse the intensifying political crisis.
Mexico and Germany did $17.8 billion in trade a year ago, and are keen to expand the relationship.
Major German manufacturers have factories in both Mexico and the United States, including carmakers such as Volkswagen, BMW and Daimler.
The election of U.S. President Donald Trump has reinforced Mexico's need to reduce its reliance on the U.S. market and export-oriented Germany has been touted as a natural partner for a more global Mexico.
Merkel praised Mexico's "strong commitment to free trade", in a veiled jab at Trump's attacks on globalisation.
"We will wait for the results of these elections but meetings (on Brexit) are going to begin and we are going to defend the interests of the 27 countries which will be in the European Union in the future", Merkel said on Friday.
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Trump has attacked Germany and Mexico for their trade surpluses with the United States and has vowed to withdraw from NAFTA if he can not renegotiate it in favor of the United States. "And I'd like to offer thanks that the interests of German companies are also being taken into consideration".
President Enrique Peña Nieto stressed that Merkel's visit is at a crucial moment for the world where efforts are aimed at defending values such as democracy, free trade and protection of the environment and human rights.
Mexico and Germany did $17.8bn in trade in 2016, and are keen to expand the relationship.
The European Parliament's Brexit co-ordinator, Guy Verhofstadt, said: "Yet another own goal, after Cameron now May, will make already complex negotiations even more complicated".
"We insist", said the Chancellor of Germany.
Merkel also said she hoped for a speedy conclusion this year to talks between Mexico and the European Union to update a free trade accord.
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