On December 15, 2020, the Mexican Secretary of Economy and the Secretary of State for International Trade of the United Kingdom, issued a joint statement through which they communicated the signing of the UK-Mexico Trade Continuity Agreement.
Based on the joint statement, the Agreement will maintain preferential access for trade between the two countries following the end of the United Kingdom’s Transition Period with the European Union on December 31, 2020, when the European Union-Mexico Global Agreement will no longer apply to the United Kingdom.
The purpose of the Continuity Agreement is to avoid the imposition of the World Trade Organization´s Most Favored Nation tariffs as a default measure, that otherwise would have become applicable after December 31st.
The joint statement indicates that the Agreement will be “temporary,” as the governments of Mexico and the United Kingdom agreed to start negotiations aiming to enter into a new trade agreement that they will seek to conclude within the next three years.
Additionally, the joint statement notes that the Agreement will provide “vital” coverage to the automotive, pharmaceutical, textile, agricultural and food and beverage sectors, as well as other manufacturing industries.
As the text of the Agreement has just been released, we will be issuing a more detailed communication in the next few days.
It is highly recommended that companies that have or are planning trade operations between both countries analyze the impacts to their supply chains arising from the new Continuity Agreement.
This blog is made available by Foley & Lardner LLP (“Foley” or “the Firm”) for informational purposes only. It is not meant to convey the Firm’s legal position on behalf of any client, nor is it intended to convey specific legal advice. Any opinions expressed in this article do not necessarily reflect the views of Foley & Lardner LLP, its partners, or its clients. Accordingly, do not act upon this information without seeking counsel from a licensed attorney. This blog is not intended to create, and receipt of it does not constitute, an attorney-client relationship. Communicating with Foley through this website by email, blog post, or otherwise, does not create an attorney-client relationship for any legal matter. Therefore, any communication or material you transmit to Foley through this blog, whether by email, blog post or any other manner, will not be treated as confidential or proprietary. The information on this blog is published “AS IS” and is not guaranteed to be complete, accurate, and or up-to-date. Foley makes no representations or warranties of any kind, express or implied, as to the operation or content of the site. Foley expressly disclaims all other guarantees, warranties, conditions and representations of any kind, either express or implied, whether arising under any statute, law, commercial use or otherwise, including implied warranties of merchantability, fitness for a particular purpose, title and non-infringement. In no event shall Foley or any of its partners, officers, employees, agents or affiliates be liable, directly or indirectly, under any theory of law (contract, tort, negligence or otherwise), to you or anyone else, for any claims, losses or damages, direct, indirect special, incidental, punitive or consequential, resulting from or occasioned by the creation, use of or reliance on this site (including information and other content) or any third party websites or the information, resources or material accessed through any such websites. In some jurisdictions, the contents of this blog may be considered Attorney Advertising. If applicable, please note that prior results do not guarantee a similar outcome. Photographs are for dramatization purposes only and may include models. Likenesses do not necessarily imply current client, partnership or employee status.