A £5 billion EU continuity trade deal with Mexico, which UK government officials have hailed as an “Aztec Brexit Boost”, has now become obsolete after the EU signed a more generous and comprehensive deal between its 27 members states and Mexico.
The trade deal, which was meant to replicate the existing EU deal with Mexico, will now face stiff competition from EU countries, which have negotiated better terms to sell their manufactured goods and other products to Mexico. The enhanced EU-Mexico Agreement will remove many of the remaining customs duties, increase regulatory co-operation and lower non-tariff barriers for EU companies.
An article on bylinetimes.com states that, according to a new report from the House of Lords’ International Agreements Committee, the UK might have to wait another three years to catch-up with the EU, even if talks on a new agreement begin this year.
The UK trade deal allowed Mexico to continue to export fruit, vegetables and nearly £1 billion of precious stones and metals to the UK at advantageous rates.
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