UK-Mexico Trade Continuity Agreement has been saved
UK-Mexico Trade Continuity Agreement
Trade and market access
Brexit pulse alert: respond to the business impacts of Brexit
15 December, 2020
Top Brexit impacts
The agreement in principle provides confidence to businesses that trade between the UK and Mexico will continue on largely the same terms as secured in the EU-Mexico Global Agreement. Total trade in goods and services between the UK and Mexico was worth over £5 billion in 2019.
The UK government said: “this agreement guarantees UK businesses the certainty they need to operate in the Mexican market. It could save around £59 million worth of duties that would have been levied on UK exports to Mexico under WTO terms.
“Tariffs on UK car exports will remain at 0%, compared to up to 20% under WTO terms. This could save around £29 million in duties in 2021 on UK exports of vehicles. Tariffs applied to UK beverage exports – such as wine, beer, cider, gin and tea – also remain at 0% compared to up to 20% under WTO terms.”
The two countries have also committed to begin negotiations on a new free trade agreement in 2021.
Actions for business
Businesses trading within the UK-Mexico corridor will be able to plan for the future with greater certainty. Once published, firms will have some time to examine the legal text of the agreement, which will come into effect on 1 January 2021 after the transition period.
To discuss specific support with your Brexit preparations based on this latest development contact: Deloitte Brexit Insights