Business Continuity Agreement between Mexico and great Britain (Agreement) operated while the two countries achieved little growth in their bilateral product trade from January to July 2022.

In those seven months, the flow of merchandise trade between the two countries reached 3,092 million dollars, an increase of 3.4% year-on-year, according to data from Bank of Mexico (Banxico).

On a year-on-year level, the corresponding export from Mexico was 1,745 million dollars (-4.3%), while UK sales were 1,347 million (+15.4 percent).

Previously, trade relations between the UK and Mexico were governed by the Global Agreement, as amended, which has been in force since 1 July 2000 (with respect to trade in goods), and since 1 October of the same year (with respect to trade in services).

The Global Agreement ceases to be effective in the UK on 1 January 2021.

On the other hand, the Treaty is one of the UK’s 38 Regional Trade Agreements (RTAs) and one of Mexico’s 23.

Signed on 15 December 2020 and effective from 1 June 2021, this Agreement contains 12 Articles and Attachments.

However, according to information from World Trade Organization (WTO), Article 3 incorporates by reference most of the provisions of the Global Agreement, as well as Decisions regarding the EU-Mexico Joint Council and Joint Committee.

Business Continuity Agreement

Amendments to the contents of the Global Entity Agreement are contained in the Annex to the Agreement.

This Agreement is also accompanied by an exchange of Notes upon the temporary validity of the Agreement on January 1, 2021; and with a joint political statement accompanying the signing of the Agreement.

In the preamble to the Agreement, the Parties reaffirmed their desire to continue to implement the rights and obligations set out in the Global Agreement between them, and that the main objective of the Agreement is to maintain preferential conditions relating to trade between them (Article 1).

In Article 9, the Parties agree to commence negotiations for an “ambitious, modern and comprehensive free trade agreement” as soon as possible and within one year from the date of entry into force of the Agreement.

The two countries will seek to conclude negotiations within three years from the entry into force of the Treaty.

The Parties commenced negotiations on 20 May 2022.