Negotiations have launched on a new UK Mexico Free Trade Agreement, set to enhance trade relationships between the UK and the world’s 16th largest economy. The deal seeks to update existing relationships to better support the shift to a more digital economy. Negotiations began in London on 20th May between International Trade Secretary Anne-Marie Trevelyan and her Mexican counterpart, Tatiana Clouthier. Mexico is a major overseas market for UK exporters, with demand for imports expected to grow by 35% by 2035, thanks to a young and rapidly growing population. Geographically, the country also acts as a gateway to the wider Trans-Pacific region and the rest of Latin America.
UK negotiators will look to boost the £4 billion trading relationship by increasing trade flows within the financial, creative, digital and technology sectors. Other ambitions include reductions for barriers to exports for UK SMEs looking to sell in Mexico, and tariff-free trade on 97% of UK goods. The negotiations are the third launched by the International Trade Secretary this year, following visits to kick off talks in India in January and Canada in March. The UK is also seeking accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) of 11 countries in East Asia, Oceania and the Americas, which could see 99.9% of UK exports being eligible for tariff-free trade with this bloc.