Mexico-United Kingdom FTA – Formal beginning of negotiations

On May 20 of this year, the Ministry of Economy (hereinafter “SE”) published Press Release No. 027 (hereinafter “the Press Release”), through which it announces that the head of the Ministry of Economy and the Secretary of International Trade of the United Kingdom, have formally agreed to begin negotiations for a new Free Trade Agreement between the two countries. The Press Release is available here.

The Press Release also mentions that both countries agree that it is important to negotiate a modern agreement that will allow them to take advantage of the opportunities of the 21st century economy. For the purposes of the negotiations, Mexico will host the first round of chief negotiators to be held in July of this year, and a second round is expected this fall.

The above is announced in compliance with Article 9 (Subsequent Negotiations) of the United Kingdom-Mexico Trade Continuity Agreement, which states that the parties would initiate negotiations for a free trade agreement within one year of its entry into force on June 1, 2021. This same article indicates that the parties will endeavor to conclude such negotiations within three years from that same date.

Based on what is referred to in the Press Release, it is established that the United Kingdom is the 16th largest trading partner of our country worldwide and the 8th largest investor.

In addition, the Department for International Trade of the United Kingdom published in a document containing the strategic arguments to achieve a free trade agreement with Mexico, the objectives of the negotiation of such agreement, the initial assessment of the potential long-term impacts of the referred agreement, among other issues.

We will have to follow the development of the trade negotiations between these countries in order to identify the issues to be negotiated and the approaches of each negotiating team.

We remain at your disposal for any additional questions or clarifications you may require in connection with this bulletin.

This bulletin was prepared by José Alberto Campos-Vargas ([email protected]); Eduardo Sotelo-Cauduro ([email protected]); Juan Carlos Jiménez-Labora Mateos ([email protected]); Fernando Josué Mancilla-Hinojosa ([email protected]); Alejandro Ferro-Fong ([email protected]); and Alexandra Badillo-Kusulas ([email protected]).