Watch our webinar where expert speakers discuss the potential that Mexico has to offer, and how the upcoming CPTPP deal can help lower barriers to trade for your business.
Mexico is the 12th largest economy in the world and second largest in Latin America, and its demand for imports is forecast to grow by 42% between 2021 and 2035 as its economy continues to grow. With a population of over 130 million people, its market is larger than France and Italy combined.
Mexico’s trade deals with the US and Canada strategically position Mexico as a commerce corridor with the world’s largest consumer market. Acting also as a gateway to Latin America, this will likely contribute to even further demand for imports.
Trade with Mexico is on the rise. Exports to Mexico from the UK have increased by 11.5% in the past 12 months alone, representing £3.3 billion in sales. Since 2021, this increase is of over 36%, with goods exports driving the majority of this growth.
The UK’s Free Trade Agreements (FTAs) with Mexico present enhanced trading opportunities for UK business, and improve access to Mexico as an export market.
The UK’s FTAs with Mexico
In 2023 the UK joined the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is a deep free trade agreement between 12 economically diverse countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, Vietnam…and now the UK. With a combined GDP of £12 trillion and forecasts of further growth, the CPTPP presents immense growth potential for UK businesses.
The UK also has an existing trade agreement with Mexico: the UK-Mexico Free Trade Agreement, which came into force in June 2021. CPTPP builds on this by further reducing costs, increasing supply chain reliability, and improving market access.
In this webinar, explore how the UK’s FTAs improve your opportunities when trading with Mexico.
What do these FTAs do for you?
Reducing costs
Tariff-free access to Mexico through the FTAs significantly enhances UK businesses competitiveness by directly reducing costs. Currently, the UK exports around £30billion worth of goods to CPTPP countries. £1.8bn of goods were exported to Mexico in the four quarters to the end of Q1 2024. With CPTPP, over 99% of UK exports will be eligible for tariff-free trade to CPTPP countries.
Optimising supply chains
Under CPTPP, companies are potentially able to cumulate inputs from 12 CPTPP markets to count towards “originating” materials, to then sell into a CPTPP market, subject to meeting the relevant rules of origin requirements. This particularly benefits industries with complex supply chains, notably the manufacturing industry.
Improving market access
Reduced costs allow for more competitiveness in-market, but the FTAs go beyond that to also ease processes that further reduce costs and time. Examples include guaranteeing advanced rulings, committing to simplifying customs processes, or accepting trade administration documents in electronic form. The UK’s FTAs with Mexico also enhance access to procurement opportunities, growing a potential client base in market.
Another example of improved market access is the ability under CPTPP to potentially have your goods assessed against Mexican regulations in the UK, prior to exporting.
