News that the UK and Mexico have launched negotiations on an improved trade agreement (see UK opens talks for a Mexico 2.0 trade deal) have been welcomed by the British Chambers of Commerce (BCC) and the Food and Drink Federation (FDF).
For the Federation, head of international trade Dominic Goudie said: “The launch of talks between the UK and Mexico is a great opportunity to secure improvements to the existing trade deal. The current agreement offers only very limited opportunities for food and drink exporters, with prohibitively high tariffs remaining, and this is an ideal chance to put in place a deal that is tailored for the trade in food and drink between our two countries.”
It should, he went on, be a priority to secure improved market access for UK exporters of dairy, chocolate and confectionery, pork and poultry products.
Mr Goudie highlighted that Mexico (the 15th largest economy in the world in 2020) is also a vital source of ingredients and tariff reductions would benefit UK manufacturers.
Reacting to news of the launch, BCC Head of Trade Policy, William Bain, described Mexico as a key market for exporting firms, particularly in Northern Ireland and the North-East of England.
“We want to see an ambitious new agreement that focuses on the growing market in green trade, as well as future proofing access for further expansion in services,” he went on. “Other key factors will be effective labour mobility and business travel schemes, and reduced costs for exporters through strong digital trade provisions.”
The BCC is also calling for arrangements on rules of origin which provide manufacturers with similar flexibilities on supply chains to those currently in place, as well as the benefits of further tariff reductions.
