The UK-Mexico Trade Continuity Agreement will particularly benefit the automotive, pharmaceutical, textiles, agriculture, food and drink industries and other manufacturing industries - the sectors where the UK has the highest amount of trade with Mexico.
Both countries have also committed to start negotiating a new and ambitious free trade agreement next year, which will go much further than the existing deal.
This agreement also represents another step towards the UK’s accession to the Comprehensive and Progressive agreement for Trans-Pacific Partnership (CPTPP), to which we aim to apply for formal accession in early 2021. Both sides have agreed that our future bilateral negotiations should run in parallel to this process.
Joining CPTPP would put the UK at the centre of an increasingly influential trade network of 11 dynamic economies in the Indo-Pacific region that already accounts for 13% of global GDP and would rise to 16% with our accession.
Around 3,800 UK businesses export goods to Mexico, which the OECD expects to become one of the world’s 10 largest economies within a generation and which has a market of over 130 million consumers.
This agreement guarantees UK businesses the certainty they need to operate in the Mexican market. It could save around £59 million worth of duties that would have been levied on UK exports to Mexico under WTO terms.
The UK and Mexico also set out their commitment to a joint political dialogue covering all bilateral and international matters of mutual interest, including continuing and intensifying all areas of current cooperation.
International Trade Secretary Liz Truss said:
“This deal supports a trading relationship worth more than £5 billion and locks in access to each other’s markets. We look forward to working together with our Mexican friends and allies on a new and ambitious trade agreement in 2021. This will allow our two countries to go much further in areas such as data, digital trade, investment, intellectual property and services.
“This is also the seventh trade deal we’ve secured with a member of CPTPP, the grouping of 11 dynamic economies around the Pacific. So, it’s another really important stepping stone toward the UK joining CPTPP, and I look forward to making our application to do just that early next year. Together we’ll enjoy even more success by seizing this opportunity to take our trade to new heights. International Trade will help us to overcome the challenges of coronavirus and drive economic growth across our United Kingdom.”
Minister for International Trade Ranil Jayawardena said:
“This deal is great news for businesses on both sides. It provides certainty for the thousands of British firms who already export to Mexico - and is a firm foundation for negotiating a new, more ambitious agreement next year.”