On 15 December 2020, Mexico and the United Kingdom signed an agreement to continue trading after the UK leaves the EU. The deal entered into force on 1 January 2021, which corresponded with the end of the transition period for the UK’s withdrawal from the EU. This means that as of 1 January 2021, the UK has officially left the EU.
The continuity agreement maintains trade flow between the two countries on existing terms after the UK abandons the European Union’s common trade policy. Furthermore, representatives from Mexico and the UK announced that they will start negotiating to develop a deeper partnership next year.
This deal prevents the trade between the two nations from having to succumb to the more restrictive World Trade Organisation terms, now that the UK has left the EU trade circle.
The UK’s Trade Minister Elizabeth (‘Liz’) Truss and her Mexican counterpart Graciela Márquez, were both present at the signing event. “This deal supports a trading relationship worth more than 5 billion pounds ($6.69 billion) and locks in access to each other’s markets,” Minister Truss said in a statement.
Mrs. Truss also insisted that the UK and Mexico had agreed to commence discussions on a potential deal, which would go further than this continuity agreement and could include new topics such as migration, employment abroad, new markets, etc.
It is important to highlight that Mexico is a current member of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), an international trading alliance which the UK most certainly aims to be part of, given its post-Brexit hunt for new trading opportunities for products and specialised services.
Minister Márquez pointed out that the deal not only maintains the trade terms between the two countries, but also evidences the will of both nations to continue being business partners.
The employment law team of De La Vega & Martínez Rojas, S.C. will continue to monitor the progress of this important agreement and how the possibility of a deeper partnership between the two nations may impact the economy, to keep you informed in a timely and opportune manner. We remain at your disposal to provide the necessary counseling should this agreement impact you or your business in any way.
Are you still confused about Brexit? L&E Global’s Brexit Exchange Forum is our interactive knowhow platform created to help clients confront the challenges posed by Brexit, informatively and effectively.
For more information please contact Joseph Granato, Communications Manager at L&E Global at email@example.com.