UK and Mexico enter enhanced trade talks

Negotiations have launched on a new UK Mexico Free Trade Agreement, set to enhance trade relationships between the UK and the world’s 16th largest economy.

The deal seeks to update existing relationships to better support the shift to a more digital economy. Negotiations began in London on 20th May between International Trade Secretary Anne-Marie Trevelyan and her Mexican counterpart, Tatiana Clouthier.

Mexico is a major overseas market for UK exporters, with demand for imports expected to grow by 35% by 2035, thanks to a young and rapidly growing population. Geographically, the country also acts as a gateway to the wider Trans-Pacific region and the rest of Latin America.

UK negotiators will look to boost the £4 billion trading relationship by increasing trade flows within the financial, creative, digital and technology sectors. Other ambitions include reductions for barriers to exports for UK SMEs looking to sell in Mexico, and tariff-free trade on 97% of UK goods.

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.

“From autonomous vehicle manufacturers in the West Midlands, to Wales’ green tech businesses and Scotland’s thriving food and drink sector, companies of all shapes and sizes across the UK stand to benefit.

“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 negotiations are the third launched by the International Trade Secretary this year, following visits to kick off talks in India in January and Canada in March. The UK is also seeking accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) of 11 countries in East Asia, Oceania and the Americas, which could see 99.9% of UK exports being eligible for tariff-free trade with this bloc.