UK & Mexico begin negotiations on modern trade deal

Through this FTA, the UK will seek to make buying and selling goods and services online and product standards recognition processes smoother, helping British businesses expand more quickly and supporting jobs. The UK also aims to lock in tariff reductions of £57 million per year secured under existing agreements, ensuring tariff-free trade on 97 per cent of UK goods, the government of UK said in a statement.

UK negotiators will look to go further and deeper in areas like services and technology, boosting a trade relationship already worth over £4 billion.

UK’s Secretary of State for International Trade Anne-Marie Trevelyan said: “This enhanced deal would transform our relationship with Mexico, making the most of the immense opportunities its dynamic business landscape and young, growing population offer. Trade deals like this are vital to growing the economy to address the cost of living, as they support jobs, help businesses thrive and spur investment. We’ve already kickstarted negotiations with India and Canada and are close to joining the CPTPP free trade area, with a combined GDP of £9 trillion, of which Mexico is a key member.”

The UK is aiming for a dedicated chapter on small and medium-sized enterprises (SMEs) that would knock down sector-specific barriers, cutting costs and paperwork for SMEs looking to export. The UK government said it will look to help workers move between the two countries more easily and enhance opportunities for UK firms to bid for contracts in Mexico.

This new FTA will also complement the UK’s CPTPP negotiations, accession to which could see 99.9 per cent of UK exports being eligible for tariff-free trade with this bloc, which includes some of the world’s largest existing and future economies including Mexico.

It is the third major FTA negotiation launched by UK this year - following talks launched with India in January and Canada in March.

Fibre2Fashion News Desk (KD)