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You are here: Home / News Features / The Trade Continuity Agreement: Bolstering UK-Mexico Relations

The Trade Continuity Agreement: Bolstering UK-Mexico Relations

December 19, 2022 By Jonathan

Both Mexico and Britain enjoy cordial bilateral relations that have lasted for decades now.  Both countries are members of the G-20 major economies, United Nations, and organization for economic development and cooperation. The relations between the two countries go back a long way. When Mexico gained its independence in 1821, Britain was the first European power to recognize its independence. Soon afterwards, the Mexican emperor Agustín de Iturbide sent a diplomatic envoy to Britain to strengthen relationsin1837. During the meetings, the two nations ratified the treaty of amity, commerce and navigation where they abolished slave trade. Also, the British seized the opportunity to establish merchant houses in Mexico.

The relationship between the two countries has remained cordial until recent times. On 5th December 2020, the two countries launched free trade deals talks. On the 5th December of the same year, the governments of UK, Ireland and the United Mexican states welcomed the signing of the UK-Mexico Trade Continuity Agreement. This agreement was signed by the Minister of Economy of Mexico, Graciela Márquez Colín and the Secretary of State for International Trade of the United Kingdom, Elizabeth Truss.

The agreement provided for the continuity of trade between the two countries after the end of the year 2020. However, it is important to note that this agreement was meant to be transitional in nature as the two countries were set to begin negotiations on a new Free Trade Agreement in the year 2021. The agreement came in the light of Brexit that was to take effect on the 31st December 2020. By then, the EU-Mexico Global agreement will not apply to the UK. With the agreement, the UK will continue to enjoy preferential trade with the UK. Both countries enjoy trade that accounts for $5 billion every year (source: britishcouncil.org).

In 2021, more than 530,000 Britons traveled to Mexico for tourism and trade. It is also estimated that more than 10,000 Mexicans live in the UK today (source: newstatesman.com). For British tourists planning to visit the Quintana Roo state in Mexico after 1st April, 2021, they have to pay Visitax Cancun Mexico tax before departing Mexico. All the tourists departing from Mexico must show proof of having paid the tax before departure. The Visitax also serves as a business visa. This covers tourists, travelers on transit via Mexico, as well as business people going to Mexico on trade.

Conclusion

The UK and Mexican relation continues to grow and the two countries continue to work together to deepen the social, economic, political, people-to-people ties between the two nations. In the future, there will be more trade agreements and even better bilateral relations between the UK and Mexico.

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About Jonathan

Jonathan is a consummate Anglophile with an obsession for Britain that borders on psychosis. Anglotopia is his passionate side-gig and he's always dreaming of his next trip to England, wishing he lived there - specifically Dorset.

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