The Department for Business and Trade (DBT) confirmed on 10 November 2023 that British goods will remain eligible for reduced or zero tariffs to Mexico after the UK Government secured the extension of rules of origin (ROO) provisions.
The arrangement will come into effect from 1 January 2024 and will remain in place until a new UK–Mexico Free Trade Agreement (FTA) enters into force.
When the UK negotiated its current trade agreement with Mexico, rolled over from its membership of the EU, time-restricted provisions were agreed to allow for the use of EU inputs in UK products in meeting the UK–Mexico rules of origin.
The extension will apply until the entry into force of new, permanent rules as part of a new, enhanced FTA with Mexico.
Minister for Industry and Economic Security, Nusrat Ghani, said: “Ensuring UK goods avoid higher tariffs is essential for British businesses to stay competitive in this huge and dynamic market of over 130 million people. This extension will provide UK businesses exporting to Mexico with certainty as they plan for next year and beyond while the UK and Mexico negotiate an exciting new trade deal covering the 21st century economy.”
The UK and Mexico launched negotiations on the new deal in May 2022. It is intended to replace the existing, outdated trade arrangements which were agreed over 20 years ago and to boost the £6.2 billion trading relationship.
Director of Sustainability and Growth at the Food and Drink Federation (FDF), Balwinder Dhoot, said: “This is welcome news for UK food and drink manufacturers, avoiding any disruption to an increasing export market worth almost £175 million to the UK, our third largest in Latin America. This will help businesses to export more and ensures continued access to seasonal imported ingredients that complement our industry’s use of domestic produce.”
