On May 20, 2022 the Secretary of Economy of Mexico, Tatiana Clouthier, and the Secretary of State for the Department for International Trade of the United Kingdom, Anne-Marie Trevelyan formally initiated negotiations towards a new Free Trade Agreement between both sovereignties, complying with their commitment to initiate talks within a year from the entry into force of the UK-Mexico Trade Continuity Agreement.
As we previously reported, on December 15, 2020 both countries signed a Trade Continuity Agreement to, despite BREXIT, maintain preferential access for mutual trade; the Agreement entered into effect on June 1, 2021. We have also provided a first look into the Agreement´s relevant provisions, and an update.
Through the formal initiation of negotiations, both representatives agreed that the first round of negotiations will begin July 11, 2022 in Mexico City, followed by a second round in the Fall of 2022. The objective is to conclude the negotiations within two years.
During the May 20, 2022 reunion, the Mexican Secretary of Economy highlighted that the United Kingdom is Mexico's sixteenth global trading partner, as well as the country's eighth source of foreign investment with more than 2,000 British companies established in the country.
On the other hand, the Secretary of State for the Department for International Trade of the United Kingdom pointed out that Mexico has become an important market for UK exports, in the context that Mexico’s demand for imports is forecast to grow by 35% between 2019 and 2035.
It was mentioned that the new Free Trade Agreement between Mexico and the United Kingdom will not only be related to trade in goods and services, but also digital trade, cross-border data flows, electronic commerce, regulatory cooperation, and innovation.
At Foley, we will keep a close eye on the negotiations in order to provide insights that will help companies that have or are planning operations between both countries.