— by Gustavo Franco —
The distance between Mexico City and London may be 8913 km or the journey by plane may take 10 hours, but the historical ties that bind the two countries together are still very strong. The UK was the first country in the world to recognize Mexican Independence in 1824, and diplomatic ties along with globalization have fundamentally reshaped international relations; the evolving partnership between both countries serves as a compelling example of how countries can navigate and take advantage of these changes. Currently, the partnership between Mexico and the United Kingdom is on the rise. This essay will focus on three critical aspects: the implications of the post-BREXIT era, the significance of the Treaty of Continuity Agreement, and the prospects for future diplomatic relations.
As we well know, the BREXIT process from 2016 to 2020, far from being beneficial for the UK, meant that the 10th of Downing Street had to seek new trade alliances with various continents and one of them was the American continent, specifically, one of the first to approach was Mexico in 2021. Since 2000, there has been a Free Trade Agreement between the European Union (EU) and Mexico whose main objective was to establish a bilateral trade in goods and services that was preferential, progressive, and reciprocal. During that period and up to 2020, trade between Mexico and the UK was 7.5% of the EU total, with BREXIT it was known if both countries were going to maintain a treaty. With the challenge it posed at that time, the UK was able to adjust to the global geo-economic map.
Both countries have signed a free trade agreement called the UK-Mexico Trade Continuity Agreement (TCA), to a certain point that extent it reproduces the agreement that existed between Mexico and the European Union. According to the figures from the Mexican Foreign Ministry, in 2021 the UK was the eighth largest source of foreign direct investment in Mexico. The TCA includes different provisions for:
- Trade in goods (including preferential tariffs, tariff rate quotas, rules of origin, and sanitary and phytosanitary measures)
- Trade in services
- Intellectual property
- Government procurement
It should be noted that this treaty is only temporary. This is only the first step of the new economic rapprochement between both countries that began in 2021.
In 2021, Mexico and the UK raised their diplomatic relations to a new level the year after that (in 2022), rounds of negotiations for a new trade agreement began. On May 30, 2022, the UK’s International Trade Secretary, Anne-Marie Trevelyan, met with the Mexican Economy Secretary, Tatiana Clouthier, in London, where it was said that for the British government, Mexican trade is very important, the country’s geo-strategic position serves as a Gateway to the Americas and the transpacific region. During 2022, trade between both countries is £4 billion sterling, 93,339,600,000 Mexican pesos (at today’s exchange rate). For the British government, the former Foreign Secretary, James Cleverly, in May 2023 said that “an ambitious future was expected for UK-Latin America relations (UK Parliament, 2023), where that government invests 464 million pounds (10,828,182,400 Mexican pesos) in green energy. Currently, FTA negotiations continue to prosper aiming:
- Open up one of the world’s largest consumer markets (Mexico), where a population of 150 million people is expected to be reached by 2035.
- For UK service industries, give them a boost in areas such as financial services, and digital technology, whilst driving economic growth and supporting UK employment.
- Remove bureaucratic barriers for small businesses, helping them grow through exports.
The negotiations on this FTA seek to give a boost to the trade of two economies (British and Mexican) that are open to the market, improving the industries of their countries and promoting employment.
It is a good idea for both countries to get closer, after the changes that the British market has undergone in recent years, but Mexico must also keep in mind that the European Union market is important, since it is sought that the Free Trade Agreement that exists with this organization is taken to a new level.
In conclusion, it is a great strategy that countries support each other to meet the needs of their markets, Mexico and the United Kingdom have been united by historical and economic ties since the 19th century, and over the decades relations have deepened. Diplomatic, I think that with the newly elected government of Mexico and with the possible new Labour Party leading the United Kingdom, new aspects of relations between both countries will be promoted, an example of this is achieving the approval and entry into force of the Free Trade Agreement.
REFERENCES:
- Department for Business and Trade. (2023, 10 noviembre). Trade with Mexico. Government Of The United Kingdom. Retrieved January 13, 2025, from: https://www.gov.uk/guidance/summary-of-the-uk-mexico-trade-continuityagreement#uk-mexico-trade-continuity-agreement-tca
- Department for International Trade, & the RT Hon Trevelyan, A.-M. (2022, 20 mayo). The UK kicks off talks on a modern trade deal with Mexico. Government Of The United Kingdom. Retrieved January 13, 2036, from: https://www.gov.uk/government/news/uk-kicks-off-talks-on-modern-trade-deal-withmexico
- Embassy of Mexico in the United Kingdom (2023, June 14). Mexico and the United Kingdom will hold the first round of negotiations for a free trade agreement between the two countries. Retrieved January 13, 2025, from: https://embamex.sre.gob.mx/reinounido/index.php/es/masavisos/1873-mexico-y-elreino-unido-llevaran-a-cabo-la-primera-ronda-de-negociaciones-para-un-tratado-delibre-comercio-entre-ambos-paises
- Government of Mexico (2020, January 30). Given the United Kingdom’s exit from the European Union, the preferential trade relationship with Mexico is maintained. Secretary of Economy. Retrieved January 13, 2025, from https://www.gob.mx/se/articulos/ante-la-salida-del-reino-unido-de-la-union-europeala-relacion-comercial-preferencial-con-mexico-se-mantiene?idiom=es
- UK Parliament. (2023, 4 septiembre). UK’s relationship with Mexico. House Of Commons Library. Retrieved January 13, 2025, de https://commonslibrary.parliament.uk/research-briefings/cdp-2023-0175/
