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Brexit: Mexico and the United Kingdom Sign Trade Continuity Agreement

On December 15, 2020, the Mexican Secretary of Economy and the Secretary of State for International Trade of the United Kingdom, issued a joint statement through which they communicated the signing of the UK-Mexico Trade Continuity Agreement.

Based on the joint statement, the Agreement will maintain preferential access for trade between the two countries following the end of the United Kingdom’s Transition Period with the European Union on December 31, 2020, when the European Union-Mexico Global Agreement will no longer apply to the United Kingdom.

The purpose of the Continuity Agreement is to avoid the imposition of the World Trade Organization´s Most Favored Nation tariffs as a default measure, that otherwise would have become applicable after December 31st.

The joint statement indicates that the Agreement will be “temporary,” as the governments of Mexico and the United Kingdom agreed to start negotiations aiming to enter into a new trade agreement that they will seek to conclude within the next three years.

Additionally, the joint statement notes that the Agreement will provide “vital” coverage to the automotive, pharmaceutical, textile, agricultural and food and beverage sectors, as well as other manufacturing industries.

As the text of the Agreement has just been released, we will be issuing a more detailed communication in the next few days.

It is highly recommended that companies that have or are planning trade operations between both countries analyze the impacts to their supply chains arising from the new Continuity Agreement.

© 2021 Foley & Lardner LLPNational Law Review, Volume X, Number 351
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About this Author

Marcos Carrasco Menchaca International Trade Attorney
Partner

Marcos Carrasco-Menchaca provides advisory and consulting services related to international trade compliance, customs, free trade agreements, customs litigation and taxation on foreign trade, as well as rendering services in international business transactions and administrative litigation.

Marcos has broad experience in advising the implementation of governmental exportation programs, such as the registration of companies in the Mexican Maquila Program (IMMEX), VAT certification, Sectorial Promotion Programs (PROSEC) and Drawback, among others.

A recognized international...

52 55 5284 8546
Alejandro Nemo Gomez Strozzi, Foley Lardner Law Firm, Mexico, Corporate Law Attorney
Partner

Alejandro Gómez-Strozzi focuses his practice on providing advisory and consulting services related to international trade compliance, antidumping, customs, foreign trade and Mexican administrative law.

As a top international trade lawyer, he has advised major multinational companies in the automotive, steel and consumer products sectors. He provides advice regarding available foreign trade programs, tax implications of foreign trade operations, implementation of free trade agreements entered into by Mexico, customs procedures, trade compliance...

5255-5284-8561
Javier Valenzuela Padilla International Trade Foley & Lardner Mexico City, Mexico
Associate

Javier Valenzuela is an associate at Foley Arena in Mexico City. Javier focuses his practice on international trade and customs. He has represented clients in complex litigation and advisory regarding to trade and customs matters, including, NAFTA and other trade agreements, rules of origin, customs valuation, tariff classification, non-tariff barriers, and other compliance matters.

Javier has experience assisting clients to obtain IMMEX (Maquila) authorizations and other preferential programs that allow them to apply reduced duty rates and other logistic benefits. Tax matters...

011-52-55-5-284-8540
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