The UK has today (Tuesday 15 December) signed a trade deal with
Mexico, locking in tariff-free trade and other benefits for
British businesses and consumers.
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.
Tariffs on UK car exports will remain at 0%, compared to up to
20% under WTO terms. This could save around £29 million in duties
in 2021 on UK exports of vehicles. Tariffs applied to UK beverage
exports – such as wine, beer, cider, gin and tea – also remain at
0% compared to up to 20% under WTO terms.
Scotch Whisky and Irish Whiskey will retain their protected
Geographical Indications (GIs) in Mexico under the UK-Mexico
spirits agreement which was signed earlier this month. Tequila
and mezcal will also continue to be protected in the UK.
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
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 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.
"Together with our friends and allies in Mexico, we can now look
forward to deepening and strengthening our trading partnership,
boosting our businesses and creating better jobs in both
countries."
The UK has now secured trade deals with 58 countries, accounting
for £198bn worth of trade annually. This accounts for 96% of the
value of trade with non-EU countries that we set out to secure
agreements with at the start of the trade continuity programme.
Andy Burwell, CBI Director of International trade,
said:
“All credit goes to DIT officials at home and in market for
securing another important trade deal with Mexico. This deal
should be seen as a starting point and can set a positive tone to
strike a much more comprehensive agreement tailored to UK
priorities in the future. Whether gaining market access for
services firms or advancing digital trade, there’s a lot of
potential for government and business to uncover.”
Notes to editors
- Source of trade statistics: ONS UK Trade: All countries,
non-seasonally adjusted, Q2 2020: HMRC Overseas Trade in Goods
Statistics, September 2020; IMF World Economic Outlook
