UK, Mexico Sign Continuity Trade Deal
UK, Mexico Sign Continuity Trade Deal
by Jason Gorringe, Tax-News.com, London
22 December 2020
On December 15, 2020, the UK and Mexico signed a trade continuity agreement that will apply when the Brexit transition period ends.
The TCA will maintain preferential access for trade between Mexico and the UK following the end of the UK's transition period with the EU on December 31, 2020. Both sides aim to bring the TCA into force on January 1, 2021, subject to parliamentary procedures and legislative approvals.
According to a joint statement issued by the UK and Mexico, the TCA "will deliver vital coverage for the automotive, pharmaceutical, textiles, agriculture, food and drink, and other manufacturing industries." The statement explained that this "will prevent the additional duty burden that would be levied under World Trade Organization most favored nation terms." Tariffs on UK car exports and UK beverage exports will remain at zero percent, compared to 20 percent under WTO terms.