The recent signing of a trade continuity agreement between Mexico and the UK has come as a relief to businesses on both sides of the Atlantic. After months of uncertainty due to Brexit, this agreement ensures that trading between the two countries can continue uninterrupted.
The trade continuity agreement allows for tariff-free and quota-free trade between Mexico and the UK, along with the continuation of existing regulatory provisions. This means that businesses can continue to import and export goods without facing unexpected fees or regulations.
For countries like Mexico, which exports a range of goods including oil, vehicles, and electrical machinery to the UK, the trade continuity agreement provides a sense of stability in a time of economic uncertainty. The agreement ensures that trade between the two countries can continue to grow, benefitting both economies.
Similarly, for UK businesses exporting to Mexico, the continuity agreement provides an important lifeline. The UK exports a range of goods to Mexico, including machinery, pharmaceuticals, and vehicles, and any disruption to this trade could have serious consequences for businesses already grappling with the impact of Brexit.
For businesses operating in both countries, the trade continuity agreement represents an opportunity. Companies can continue to expand their trading relationships without worrying about sudden changes to tariffs or regulations. This can be particularly important for small and medium-sized enterprises, which may not have the resources to adapt to sudden changes in the business environment.
Overall, the trade continuity agreement between Mexico and the UK represents a positive step forward for both countries. By providing a stable trading environment, the agreement allows businesses to continue to operate and grow, benefiting both the Mexican and UK economies.