February 28, 2021

Volume XI, Number 59

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February 26, 2021

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BREXIT: Update of the UK-Mexico Trade Continuity Agreement

In relation to our recent insights Brexit: Mexico and the United Kingdom sign Trade Continuity Agreement and Brexit: A First Look at UK-Mexico Trade Continuity Agreement's Relevant Issues, the Governments of Mexico and the United Kingdom have informed that although their internal ratification procedures have not yet been completed, they both have established transitional mechanisms to maintain, beginning as of January 1, 2021, preferential tariff treatment in accordance with the following:

  • The Government of the United Kingdom will provisionally apply the Agreement, maintaining preferential tariff treatment to Mexican imports.

  • As per the Government of Mexico, United Kingdom imports will be subject to Most Favored Nation (MFN) rates, however, a transitional mechanism will be established to refund import duties until the date the Agreement enters into force. We will be communicating the relevant process once it is announced.

Therefore, companies that import UK goods into Mexico must take into consideration the economic impact that the –temporary- import duties could represent in their supply chain; likewise, it is recommended to maintain adequate internal controls so that once the tariff refund rules are issued, companies could access such refunds.

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© 2020 Foley & Lardner LLPNational Law Review, Volume XI, Number 21
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About this Author

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
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
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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