THE BUSINESS OF INTERNATIONAL TRADE
THE BUSINESS OF INTERNATIONAL TRADE
20 May 2022 Anne-Marie Trevelyan launched negotiations on a new UK-Mexico Free Trade Agreement (FTA) with her Mexican counterpart, Tatiana Clouthier, in London.
The DIT says that negotiating a 'Mexico 2.0' deal would transform the UK's relationship with the world's 16th biggest economy and secure a brand new, enhanced FTA for a digital age, which supports hi-tech jobs, industries of the future and grows our economy.
Mexico is a major market for UK exporters. Its expanding population means demand for imports is set to grow by 35% by 2035. It is in a strategically situated part of the world, serving as a gateway to the Americas as well as to the dynamic trans-Pacific region.
UK negotiators aim to go further in areas like services and technology, boosting a trade relationship already worth over £4 billion. The agreement could increase trade flows across the financial, creative, digital and technology services sectors thanks to advanced services provisions, boosting the UK's already world-leading services industries.
Drinks is one area of interest. Diageo Chief Executive Ivan Menezes said: "We welcome the launch of the UK-Mexico trade talks. The continuation of tariff-free trade between the UK and Mexico will support both the growth of Scotch exports and the important Tequila category."
Another sector that may benefit is services. Amanda Tickel, Head of Tax & Trade Policy for Deloitte UK, said: "We welcome negotiations on upgrading the UK's trade relationship with Mexico, a fast-growing economy home to over 130 million consumers that is expected to be among the world's largest over the next two decades. The existing trade agreement has provided a strong platform for bilateral UK-Mexico trade but needs modernising to reflect today's commercial environment.
New and ambitious provisions on data, digital and services trade represent an exciting opportunity for British business and can help cement the UK's position as a leader in professional advisory and financial services around the world.
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