Why Mexico? UK commercial opportunities within the Mexican market
Mexico is the world’s 15th largest economy, according to the International Monetary Fund (IMF). It is the largest Spanish -speaking country with a population of 126 million inhabitants. Mexico is the second strongest economy in Latin America (after Brasil), but is quite distinct in its focus with its proximity to the US. The demand in Mexico for foreign products is exploding because of its growing middle class.
The Uk-Mexico Trade Continuity Agreement, which was signed the 15th December, provides the continuity in trade between Mexico and the Uk (5 billion USA dollars per year). This Agreement provides certainty for Uk and Mexican businesses. Around 3.800 Uk businesses export goods to Mexico.
The Uk and Mexico are currently working together to implement projects to encouraging business opportunities.
Mexico is a strong partner for the Uk. Both countries have been strengthening economic links and cooperation with an investment up to 322 million USA dolar in cooperation programs over the period 2019-2023. The UK is promoting investment in areas such as advanced manufacturing, energy efficiency, renewable energy, agri tech and services. Bilateral investment is also growing in both directions. Diageo and Unilever have recently invested heavily in Mexico.
There are Key sectors for the UK companies in different fields: Technology, Financial Services (Fintech), Food and Drink, Energy, Security, advanced engineering, automotive and aerospace industry and pharmaceutical. The continuity agreement will offer trade preferences such as zero tariffs.
While trade between Mexico and the Uk is still modest, we consider that there is a huge potential. Mexico represents a large export market and the biggest Latin America Investor. The Uk is the 8th biggest investor in Mexico, which is also the biggest investor in the Uk from Latam. The exports from the Uk has almost doubled from 2010, while Mexican exports to the Uk continue to show more dynamism year after year.
Furthermore, the Uk intends to pursue accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Joining the CPTPP would help to diversify UK trade links and supply chains, which would allow to continue strengthening the trade relationship with Mexico.
In conclusion, the Uk exports of goods and services to Mexico will be significantly developing for the next years. We draw the attention for British businesses to approach to this exciting and noted market which offer opportunities in key sectors.