International Trade Secretary Anne-Marie Trevelyan has launched negotiations on a new UK–Mexico Free Trade Agreement (FTA) which would, she said, transform the UK’s relationship with the world’s 16th biggest economy.
The aim is to boost a trade relationship worth £4 billion, and open up one of the world’s largest consumer markets with a population projected to reach nearly 150 million by 2035, by agreeing a new and enhanced FTA for a digital age.
Mexico is a major market for UK exporters, Ms Trevelyan highlighted. Its expanding population means demand for imports is set to grow by 35% by 2035 and 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.
“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,” the International Trade Secretary went on. 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.”
The UK is aiming for a dedicated chapter in the proposed FTA on small and medium-sized enterprises (SMEs) that would knock down sector-specific barriers, cutting costs and paperwork for those firms looking to export.
CBI President Lord Bilimoria said: “The Government did a remarkable job securing the continuity agreement with Mexico. There is now a phenomenal opportunity to strengthen our existing economic ties including in services, digital, and investment”.
The current trade agreement with Mexico is based on the EU–Mexico Global Agreement, negotiated over 20 years ago. The new deal (“Mexico 2.0”) will be better tailored to the UK, Ms Trevelyan claimed.
