Wednesday, May 31, 2023

United Kingdom: TIPAT expands access to the Mexican food sector

The United Kingdom pointed to a series of concessions achieved with the entry into force of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (TIPAT) in the Mexican agri-food sector, whose negotiations ended on 31 March.

The United Kingdom has already largely ended negotiations on its accession to TIPAT, a free trade agreement (FTA) that includes 11 members: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam.

On Mexico in particular, the British government expanded the tariff preferences that the United Kingdom received beyond the existing bilateral trade agreement between the two countries. The United Kingdom was able to obtain additional opportunities through quotas to sell dairy products, including cheese and butter. Cream and milk powder.

For example, the cheese quota provides shared access to an additional 6,500 tonnes duty-free. British exporters of chocolate and confectionery would also benefit from a 0% tariff on exports of these products to Mexico.

According to closed negotiations, TIPAT will allow for the elimination of Most Favored Nation (MFN) tariffs of up to 20% on British pork exports to Mexico immediately following the United Kingdom’s accession, subject to conditions being met. Legal Processes.

In the same area, MFN tariffs of up to 25% on UK beef exports to Mexico will be removed after a specified phase, and MFN tariffs of up to 75% on UK poultry exports will be phased out.

Overall, more than 99% of goods exported by the UK to TIPAT member countries will be eligible for zero tariffs, improving access to goods markets for UK companies.

Businesses selling key British exports such as cars and machinery would benefit from the removal of tariffs.

According to the British government, in the long term, joining TIPAT could provide a £1.7 billion (around $2.115 million) boost to UK exports to other TIPAT countries.

Of the bilateral trade flow of products in 2022, Mexican exports totaled $5,489 million and British exports totaled $1,629 million.

As part of these trade flows, while Mexico mainly exports gold, cars, telephones, medical instruments and equipment and computers, the United Kingdom exports alcoholic beverages, medicines, cars, some chemical products and turbojets, turboprops and other gases. Sells turbines.

Joining TIPAT will add the UK to one of the world’s most dynamic trading sectors, a key objective of the Integrated Review.

World Nation News Desk
World Nation News Desk
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