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

Many Britons again faced freezing temperatures overnight

Brits brace for Storm Bert: Met Office issues amber weather warning for snow - with up to 40cm set to fall

Harshita

'We will never forget you till our last breath': Family of Harshita Brella pay tribute - as manhunt continues for killer

Live
Gatwick airport.

LIVE: Gatwick Airport South Terminal evacuated after 'suspicious item found'

Exclusive
Negative images from Band Aid did 'more bad than good' for Africa, says rapper Fuse ODG

Negative images from Band Aid did 'more bad than good' for Africa, rapper Fuse ODG tells LBC

Breaking
Gatwick Airport South Terminal evacuated after 'suspicious bag found near train station' as bomb squad called in

Gatwick Airport South Terminal evacuated after 'suspicious bag found near train station' as bomb squad called in

Simone White will be 'sincerely missed', a tribute to her has said

Devastated colleagues pay tribute to British lawyer as Laos ‘methanol mass poisoning’ death toll rises to six

Colette Fairbanks was sacked after sharing ‘offensive’ posts

Brexit views not protected from workplace discrimination, tribunal rules after woman sacked over ‘offensive’ posts

The Metropolitan Police carried out a controlled detonation of a suspect package near the US embassy in London

US Embassy in London on 'lockdown' as police investigate 'suspect package'

Coleen Rooney said her husband Wayne has not been forgiven in the court of public opinion

Coleen Rooney opens up on Wayne's 'difficult' mistakes as she says he hasn't been forgiven in court of public opinion

Many of the victims were staying at the Nana Backpacker Hostel

Laos hostel owner arrested after Brit lawyer becomes fifth tourist to die in 'poisoning'

Holly Bowles, 19, from Melbourne, has died in the ‘methanol mass poisoning’

Sixth person dies in Laos ‘methanol mass poisoning’ as hostel owner detained by police

Exclusive
Feargal Sharkey tests the River Test with LBC

'We're destroying what should be the finest river on Earth': Feargal Sharkey tests the River Test with LBC

Household energy bills will rise again from January

Household energy bills to rise by £21 a year from January in further blow for Brits this winter

Putin issued a chilling threat to the West as he confirmed Russia launched a ballistic missile against Ukraine

'The world must respond': Zelenskyy warns that Putin is 'testing' the West after confirmed use of new ballistic missile

Matt Gaetz withdraws as Donald Trump's nominee for attorney general amid sexual misconduct allegations

Donald Trump nominates Pam Bondi for attorney general hours after Matt Gaetz withdraws

Starmer has backed the International Criminal Court over its arrest warrant for Netanyahu

Netanyahu faces arrest if he travels to Britain as Starmer vows to enforce International Criminal Court warrant