The Mexican government published on Tuesday the Trade Continuity Agreement with the United Kingdom, which will allow the continuation, for now, with the same exchange conditions after Brexit.
“It means preferential access to the United Kingdom market for Mexican products. It also establishes provisions that grant specific tariffs, which makes access to both markets more competitive,” the Mexican Ministry of Economy (SE) reported in a statement.
The pact was published in the Official Gazette of the Federation (DOF) after it was signed last December, when both governments agreed to maintain the preferential trade regime that they had until now under the Free Trade Agreement between the European Union and Mexico (TLCUEM).
The continuity agreement will remain in force for three years while Mexico and the United Kingdom carry out a public consultation and negotiations for a new trade agreement that serves the post-Brexit relationship, which was consummated in January 2020.
“The main objective of this Agreement is to preserve the preferential conditions relating to trade between the parties that resulted from the Global Agreement and to provide a platform for further liberalization of trade between the parties,” stated the DOF decree.
The United Kingdom is Mexico’s 16th trading partner worldwide and, while it belonged to the European Union, it ranked fifth among its member states, according to the SE.
Meanwhile, foreign direct investment (FDI) of British origin represented 15.065 million dollars (million dollars) between 1999 and September 2020, in addition to being the fourth most important in the first quarter of 2021, when it represented 5.5% of the record amount of 11,864.
Between 1999 and 2019, bilateral trade grew 176.9%
At the signing of the agreement, the Government of Mexico highlighted particular benefits for the agricultural sector and the south-southeast states of the country, since it re-dimensioned the quotas for bananas, asparagus, molasses and honey, which are produced in states such as Tabasco, Chiapas. , Veracruz and Yucatán.
“In addition, four necessary instruments were published to guarantee preferential access of products between Mexico and the United Kingdom, and that have the objective of providing the necessary information so that economic operators in Mexico are clear about the requirements,” said the SE.
With information from EFE
