The UK and Mexico have room to negotiate a deeper trade agreement that will improve access to trade in services, especially insurance and financial services.
Britain’s Department for International Trade said: “The current agreement with Mexico is shallow and covers mainly trade in goods.”
He noted that a free trade agreement to liberalize trade in services could increase British exports of insurance services by 41%, equivalent to about 80 million pounds (more than $100 million) compared to business levels for 2019.
Similarly, exports of financial services could increase by about 22%, or about 20 million pounds (more than 25 million dollars).
Read: Mexico and the UK hope to finalize a new trade agreement by the end of the year
The top three exports of services from the UK to Mexico in 2020 were business services (including accounting, legal and architectural services), insurance and pension services, as well as telecommunications, computer and information services.
These accounted for 63% of the value of UK service exports.
They seek to lower tariffs on dairy products and alcohol
Meanwhile, Mexican tariffs on UK exports, such as dairy products and alcohol, are as high as 45% and 20%, respectively.
Part of the tariff cuts can be achieved through an Enhanced Bilateral Free Trade Agreement with Mexico or through the UK’s accession to the CPTPP (Comprehensive and Advance Treaty for Trans-Pacific Partnership), in which Mexico is participating, depending on the outcome of the negotiations. conversations.
However, the UK’s Department for International Trade said: “However, the improved agreement could reduce administrative burdens on businesses and improve the use of preferential tariffs, which will reduce the cost to businesses.”
On Friday last week, the Economy Minister, Tatiana Cloutier, and the UK’s Secretary of State for International Trade, Anne-Marie Trevelyan, announced that the first round of negotiations on a new treaty would take place on July 11. They hope to finish by the end of the year.
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