A new trade deal was signed between the United Kingdom and Mexico. The advantage UK will get after signing the deal is tariff-free trade for British Businesses. Moreover, the agreement will particularly benefit the textile industry and sectors where the UK has high trade volume with Mexico.
Another aspect of the agreement is to help UK get the promotion for the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), to which they will apply for formal succession in mid 2021. The two sides have concurred that their future respective arrangements should run in correspondence to this cycle.
Negotiations have already begun as the two nations have already started to begin arranging a new free trade agreement for next year, which will go a lot farther than the current deal, the UK government said in an official statement.
For UK to run a successful market in Mexico, it needed something to fallback on and for that, this free trade agreement gives the perfect insurance. Now UK can save up to £59 million worth of duty fees as around 3,800 UK organizations trade merchandise to Mexico, the duty fee would have been imposed on exports coming in from the UK to Mexico under terms of the World Trade Organization. The Organisation for Economic Cooperation and Development expects to become one of the world’s 10 largest economies within a generation and which has a market of over 130 million consumers.
The United Kingdom and Mexico likewise set out their obligation to a joint political exchange covering all bilateral and global issues of shared interest.
