“Today`s news that British exporters will retain duty-free access to gin exports means that Mexico will remain one of the greatest trade opportunities for our gin exporters, both large and small. We would like to congratulate DIT for its excellent work in ensuring these important continuity agreements for British exports. “We look forward to working with our Mexican friends and allies on an ambitious new 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 agreement guarantees British companies the security they need to operate in the Mexican market. This would save about $59 million in tariffs on British exports to Mexico under WTO conditions. Javier Valenzuela is associated with the Foley Arena in Mexico City. Javier focuses his practice on international trade and customs. He has represented clients in complex trade and customs litigation and advice, including NAFTA and other trade agreements, rules of origin, duty assessment, tariff classification, non-tariff barriers and other compliance issues. The two countries also pledged to begin negotiations next year with an ambitious new free trade agreement that will far exceed the existing agreement.
“This agreement is good news for businesses on both sides. There is security for the thousands of British companies already exporting to Mexico,” BRITISH International Trade Minister Ranil Jayawardena said in a statement on the trade deal. “Together with our friends and allies in Mexico, we can now look forward to deepening and strengthening our trade partnership, strengthening our businesses and creating better jobs in both countries.” The joint statement says the agreement will be “temporary,” given that the Mexican and British governments have agreed to begin negotiations to conclude a new trade agreement they intend to conclude in the next three years. “Our trade agreement with Mexico means that we now have agreements with 58 countries,” tweeted UK Trade Minister Liz Truss. With these and other trade agreements, Mexico offers a stable location from which multinational organizations can operate and reach markets around the world. No wonder more and more companies are expanding and relocating their operations to Mexico. To find out how your manufacturing company can begin to maximize the benefits of a site in Mexico, contact Tetakawi today. For the United Kingdom, these trade agreements are particularly important for establishing a competitive presence in the world after the UK leaves the European Union. The absence of strong trade agreements could result in costly tariffs on a wide range of products manufactured and imported into the UK, increasing the cost of consumer goods, automobiles, pharmaceuticals, textiles and other products.
It was in this context that the two countries signed the UK-Mexico Trade Continuity Agreement on 15 December 2020 to guarantee duty-free trade for British businesses. The agreement is the prelude to negotiations for a new free trade agreement in 2021, which is expected to delve into more in-depth details on digital trade and data, intellectual property rights and investment.