UK and Mexico sign post-Brexit trade agreement to avoid harsh No Deal tariffs

15 December 2020, 16:49

Exports to Mexico will remain the same post-Brexit as a result of the deal
Exports to Mexico will remain the same post-Brexit as a result of the deal. Picture: PA Images
Ewan Quayle

By Ewan Quayle

The UK has signed a continuity trade deal with Mexico worth more than £5 billion to avoid tough tariffs on exports after Brexit, the government has announced.

International Trade Secretary Liz Truss said the agreement will allow the two countries to "take our trade to new heights" as it seeks to negotiate a further trade deal next year.

The UK-Mexico Trade Continuity Agreement is expected to benefit the automotive, pharmaceutical, textiles, agriculture, food and drink sectors, as well as other manufacturing industries.

Read more: Alok Sharma: I hope UK and EU can ‘get there’ on Brexit deal before Dec 31

Read more: Brexit deal essential to avoid 'looming cliff edge,' business groups say

The deal will keep tariffs on car and UK drinks exports at 0%, saving tens of millions of pounds in duties which would have been applied under World Trade Organisation terms.

The countries have also agreed to start negotiating a new free trade agreement next year which hopes to go further than the existing deal.

Ex-Sainsbury's CEO on Brexit preperations

Ms Truss said: "This deal supports a trading relationship worth more than £5 billion and locks in access to each other's markets.

"We look forward to working together with our Mexican friends and allies on a new and ambitious trade agreement in 2021. This will allow our two countries to go much further in areas such as data, digital trade, investment, intellectual property and services.

Read more: Barnier: Limited progress in Brexit talks but deal still possible

"This is also the seventh trade deal we've secured with a member of CPTPP, the grouping of 11 dynamic economies around the Pacific. So, it's another really important stepping stone toward the UK joining CPTPP, and I look forward to making our application to do just that early next year.

"Together we'll enjoy even more success by seizing this opportunity to take our trade to new heights. International trade will help us to overcome the challenges of coronavirus and drive economic growth across our United Kingdom."

Boris Johnson confirms post-Brexit deal negotiations have been extended

It comes as the UK continues post-Brexit trade talks with the European Union - with just over two weeks until the transition period ends.

It is unclear whether a deal will be struck as the clock runs down and crucial issues remain to be resolved.

Read more: Extending Brexit trade talks 'right thing to do' confirms ex-Taoiseach

Three topics are yet to be agreed on - governance, the 'level playing field' and fisheries.

It is understood concessions may be being made by both sides in a last-ditch attempt to come to a deal.

More Latest News

See more More Latest News

Sadiq Khan has called for Russian oligarchs' assets to be seized

Sadiq Khan calls for £1 billion of property owned by Russian oligarchs in London to be seized to fund 4,000 new homes

Election 2024 Trump

Donald Trump easily beats Nikki Haley in her home state of South Carolina

Bridget Jones set to return for fourth film when cult rom-com starring Renee Zellweger begins filming later this year

Bridget Jones set to return for fourth film when cult rom-com starring Renee Zellweger begins filming later this year

An aircraft launching from USS Dwight D Eisenhower during flight operations in the Red Sea

US and UK strike Houthi sites in Yemen amid surge in Red Sea attacks on ships

Residents voting in the South Carolina Republican primary

Trump enters South Carolina primary looking to embarrass Haley in her home state

Britain and US strike more than a dozen targets in Yemen in response to ongoing attacks on shipping in Red Sea

Britain and US strike more than a dozen Houthi targets in Yemen following Red Sea shipping attacks

World leaders laid flowers in tribute to killed soldiers as they joined Volodymyr Zelensky in Ukraine

Western leaders rally around Kyiv as Ukraine marks invasion anniversary

Thames Valley Police’s Major Crime Unit has launched a murder investigation in the affulent commuter town Beaconsfield, Buckinghamshire

Murder investigation launched and man, 39, arrested after woman, 40, found fatally injured in Beaconsfield

Stan Bowles, QPR legend and former England 'maverick', dies age 75 following battle with Alzheimer's disease

Stan Bowles, QPR legend and former England 'maverick' footballer, dies age 75 following battle with Alzheimer's disease

Three female MPs have been issued with bodyguards and cars amid growing concern for politicians' safety

Three female MPs issued with 'taxpayer-funded bodyguards and cars' amid growing safety concerns

A picture of Alexei Navalny next to flowers in front of the Russian embassy in Berlin

Body of Russian opposition leader Navalny handed over to his mother, aide says

Destroyed residential buildings in Rafah

Israeli officials to meet over proposed pause in Gaza fighting

Wendy Williams thanks supporters for 'love and kind words' after she is diagnosed with same rare form of dementia as Bruce Willis

Wendy Williams thanks supporters for 'love and kind words' after she is diagnosed with same rare form of dementia as Bruce Willis

Competitors battle in a muddy pool at the Florida Man Games

Tank-topped teams compete in spoof sporting event in Florida

Children are seen in a building destroyed in an Israeli air strike in the southern Gaza Strip city of Rafah, February 22

'Progress' made in Gaza ceasefire talks after Hamas 'drop some of its demands' that could see Israeli hostages released

Luiz Inacio Lula da Silva

Brazilian president accuses Israel of committing genocide in Gaza