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LatinNews Daily - 02 June 2021

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In brief: Mexico-United Kingdom trade agreement comes into force

* Mexico’s economy ministry (SE) has announced that following the publication in the official gazette of a series of decrees on preferential tariff arrangements, the Mexico-United Kingdom Trade Continuity Agreement (TCA) has now come into full force. The TCA replaces the trade agreement that Mexico has with the European Union (EU) and that governed bilateral trade with the United Kingdom (UK) until it decided to leave the EU. Signed in December 2020, the TCA allows reduced tariff trade to continue between the two countries as it had done under the previous agreement with the EU for the next three years. An SE statement said that the agreement “means that Mexican products have preferential access to the United Kingdom market” while the two countries explore the possibility of signing a broader agreement. “The main objective of the current agreement is to preserve preferential trade conditions… and provide a platform for greater bilateral trade liberalisation”, the SE statement explains. According to SE figures, the UK is Mexico’s fifth largest export market in Europe with bilateral trade reaching US$5.2bn in 2019, a 12.5% increase on the previous year.