The US “doesn’t want to restart trade talks,” says Trevelyan
The UK recently completed the first round of its trade talks with Mexico on a £4bn deal to boost trade between the two countries and open up a market estimated to reach almost 150m by 2035. The government says its Mexico 2.0. The deal will transform the UK’s relationship with 16 of the world’s largest economies with a new Free Trade Agreement (FTA) fit for the digital age and supporting high-tech jobs, future industries and growth.
Director General of the Institute of Export and International Trade Marco Forgione said Express.co.uk there are great opportunities to expand trade between the two countries.
He said. “There is a huge market potential. Mexico has all the indicators of a truly emerging economic market. The UK is in a prime position to agree a really great trade deal.”
Mr. Forgione continued. “There is an immediate benefit of encouraging greater trade between Mexico and the UK. Whatever people’s views of Mexico have historically been, it is an incredibly dynamic and progressive economy with a highly skilled, growing workforce, especially in highly skilled countries. Value production. They are a significantly growing economy. By 2050, it is expected to be the fifth largest economy in the world.
“In Mexico City, they have a growing middle class. There is huge scope for expansion [trade]. It is also another important step in joining the CPTTP.”
The UK and Mexico have completed the first round of negotiations on a new free trade agreement
Anne Marie Trevelyan, Secretary of State for International Trade and President of the Board of Trade
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTTP) is a trade agreement between Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.
Automotive, aerospace, pharmaceuticals, food and beverages are key sectors in Mexico.
Fintech, finance and education sectors can also provide opportunities for UK businesses.
Mr. Forgione said: “Mexico’s economy is diverse and growing, and is moving up the value and supply chains in some key, leading sectors. If we’re looking at diversifying supply channels and supply chains for UK businesses, it’s a fantastic addition.
“The challenge facing the government is not just with this Free Trade Agreement, which is an extension of the Continuity Agreement, but how we get businesses to use the agreements that have been signed.”
A cargo ship sails to Southampton Water
Aerial view of Western Docks, Southampton
He explained that efforts must be stepped up to encourage and support small and medium-sized enterprises (SMEs) to take advantage of Britain’s trade deals.
Mr. Forgione called for chapters on SMEs to be included in agreements with government to do more to support efforts to provide advice and guidance.
The government says the modern, expanded agreement with Mexico aims to remove barriers and red tape for small businesses as part of efforts to help them grow through exports.
Mexico is the leading market for British whiskey imports in Latin America. The UK also exports electric vehicles, road vehicles, medical and pharmaceutical products, in addition to services.
Mr Forgione said the new deal could provide a huge opportunity for e-commerce, where Mexico is not as developed as the UK.
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Countries with the most trade agreements
He said. “There is a huge opportunity for UK businesses to go and help the growth of e-commerce provision in Mexico.
“There are technologies, there are services around it, which would be an immediate, potential growth market.”
He cited the areas of standards, movement of people, sanitary and phytosanitary products, mutual recognition and data sharing as potential challenges for the negotiations.
Product biosecurity may be Britain’s biggest challenge with evolving standards in this area post-Brexit, which should be reflected in the new FTA with Mexico.
Issues around digital standards could also be complicated when the Digital Trade Documents Bill is being debated in the UK Parliament.
Shipping containers stacked on a container ship
Those requirements should also be reflected in the UK-Mexico FTA. Data access should also be enshrined in the new FTA.
The use of chemicals in production and the use of pesticides may also be key areas of discussion.
Mr. Forgione said: “What you want is in it [FTA] and the future [FTAs] is that they are written in a spirit of flexibility and collaboration because, especially around technology and working methods, we have no idea what those processes, procedures and technologies will look like 10 years from now.”
Asked whether immigration would be a major issue, Mr Forgione said he did not see an immediate demand for low-skilled workers coming to the UK.
He said. “The reality is that there are a significant number of highly qualified, really capable business leaders who we would like to encourage to come and help us and grow the business in the UK.”
The institute, which was founded in 1935, produces monthly and quarterly trade reports that show a consistent decline in the number of UK exporting businesses.
Small and medium-sized businesses saw the biggest decline, according to the institute.
Mr. Forgione said: “It’s impossible to tell whether it’s Brexit or the global logistics collapse, whether it’s the cost of living crisis or inflation.
“It’s not just trade to the EU, it’s global trade.”
He argued that countries should simplify methods of conducting trade and increasing exports.
Mr. Forgione said: “If we can use the changes that the government is making to digital trade documents, support that with the digital trade corridor between Mexico and the UK we will really start to boost the trade of life. [the UK and Mexico]”.
Brexit Britain in ‘top position’ to agree ‘magnificent’ free trade deal with Mexico | Great Britain | news
Source Brexit Britain in ‘top position’ to agree ‘magnificent’ free trade deal with Mexico | Great Britain | news