UK and Mexico sign post-Brexit continuity deal
by Karen Faulkner, Worthy News Correspondent
(Worthy News) – The UK and Mexico signed a continuity agreement Tuesday that will permit trade between them to continue on current terms after Britain leaves the European Union’s common trade policy on December 31, Reuters reports.
Although the UK officially left the European trading bloc on 31 January, its Withdrawal Agreement with the EU provides for a transition period during which the status quo is maintained until the end of 2021.
Signing a continuity deal means Mexico and Britain will prevent their trade relationship from reverting to tough World Trade Organisation terms once Britain’s transition to exiting the EU is complete on January 1.
“This deal supports a trading relationship worth more than 5 billion pounds ($6.69 billion) and locks in access to each other’s markets,” UK trade minister Liz Truss said in a statement. According to the UK trade department, the Mexico deal averted some 59 million pounds in tariffs and duties being added to British exports like cars, beer, and tea, Reuters reports.
The two countries also agreed to begin talks on a deeper trade relationship that goes beyond the continuity deal. Britain is reportedly keen to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) trading bloc, of which Mexico is a member.
“[The Britain-Mexico agreement] is another really important stepping stone toward the UK joining CPTPP, and I look forward to making our application to do just that early next year,” Truss said in a statement.
Britain has so far reached post-Brexit trade agreements with 58 countries, to the value of $264.94 billion in annual commerce.
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