Negotiations begin on new UK-Mexico FTA

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Representatives from the UK and Mexican governments have started negotiations on a new free trade agreement between the two countries.

UK international trade secretary Anne-Marie Trevelyan has held talks in London with her Mexican counterpart Tatiana Clouthier regarding a new free trade agreement between the two countries.

The current arrangements between these nations are based on the EU-Mexico Global Agreement, which was negotiated more than 20 years ago.

Now it's no longer a member of the European Union, the UK said it wants to reach a new deal that will provide better market access for services sectors, opportunities to secure Mexican government procurement contracts and new avenues to explore in digital trade and innovation.

Mexico is an important market for British exporters, partly as a result of its rapidly growing population, which is expected to reach nearly 150 million people by 2035. Demand for imports is projected to increase by 35% over the same time period.

The country also serves as a strategic gateway to the Americas and the trans-Pacific region.

Ms Trevelyan said: "This enhanced deal would transform our relationship with Mexico, making the most of the immense opportunities its dynamic business landscape and young, growing population offer."

She also pointed out that trade negotiations are underway with India and Canada, while talks are ongoing to allow the UK to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, a free trade initiative that counts Mexico among its members.

The launch of the new FTA is due to take place at the headquarters of drinks company Diageo, a major exporter to Mexico.

Diageo chief executive Ivan Menezes said: "We welcome the launch of the UK-Mexico trade talks. The continuation of tariff-free trade between the UK and Mexico will support both the growth of Scotch exports and the important Tequila category."

The British Chambers of Commerce said key elements of the FTA will include green trade, facilitating access for further growth in services, labor mobility and reduced costs for exporters.