Britain announced on Friday that it would begin talks with Mexico on a free trade agreement, with the goal of expanding trade in the financial and digital sectors and adding services to the present pact. Before the United Kingdom left the European Union, the two countries agreed to a continuing trade pact, although it is based on a 20-year-old EU-Mexico trade agreement.
A free-trade pact with Mexico would also strengthen Britain's Indo-Pacific foreign policy. Mexico is a party to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), which the United Kingdom wishes to join. Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, and Vietnam are now members of the free trade zone, which was formed in 2018.
According to the commerce ministry, Britain's commercial relationship with Mexico is valued more than 4 billion pounds (USD5 billion). "Trade treaties like this are critical to boosting the economy and addressing the cost of living," trade minister Anne-Marie Trevelyan said in a statement.
Britain also stated that it intended to make it easier for workers to migrate between the two countries, make it easier for UK companies to bid for contracts in Mexico, and have a separate chapter in the agreement dedicated to small and medium-sized businesses.