English

Mexico wastes quotas for exports to the United Kingdom

[if swift]>SWIFT_PERFORMACE_OB_CONFLICT

Mexico has not yet taken advantage of the quotas that it agreed with the United Kingdom within the framework of the Trade Continuity Agreement between the two nations.

This agreement consolidates the export quotas for agri-food products that Mexico has with the European Union and they were updated for their use within the United Kingdom market, in line with the amounts of bilateral trade flows.

In particular, the Ministry of Economy of Mexico highlights the six-fold increase in the quota of bananas that went from 2,000 to 12,000 tons, fresh asparagus that maintains the amount of 600 tons free of tariffs, equaling the access conditions obtained for the 27 markets from the European Union, honey and molasses with amounts greater than the annual Mexican exports to the United Kingdom.

The Agreement that discloses the Applicable Rate of the General Import Tax for goods originating in the United Kingdom of Great Britain and Northern Ireland entered into force on June 1, 2021.

But in that entire year, no asparagus was exported from Mexico to the UK and only $1.1 million worth of bananas were shipped to the same address.

Within the framework of the departure of the United Kingdom from the European Union (a process known as Brexit), on December 15, 2020, the Trade Continuity Agreement was signed between Mexico and the United Kingdom of Great Britain and Northern Ireland, with the objective of continuing the bilateral preferential regime that existed within the framework of the Free Trade Agreement between the European Union and Mexico.

Quotas

This instrument allows, since its entry into force on June 1, 2021, to maintain preferences in terms of market access and trade disciplines between Mexico and the United Kingdom, with the necessary adjustments in some agricultural quotas, to make it operational and grant legal certainty to both countries, as is the case of the tariff refund mechanism.

This agreement will be valid for three years from its entry into force, a period in which negotiations will be carried out to have a broader, more modern and comprehensive bilateral free trade agreement.

For the full application of this agreement, various instruments were published for the operation of preferential tariff treatments, such as the Agreement on Import Rates, the export quotas for Mexican agri-food products, as well as the general rules related to the application of customs regulations.

Tequila

On November 30, 2020, the Agreement on the mutual recognition and protection of the names of spirits was signed between Mexico and the United Kingdom of Great Britain and Northern Ireland.

After its ratification in the Senate of the Republic, on June 8, 2021, the decree approving the aforementioned Agreement was published in the DOF.

The new Agreement will guarantee the continuity of the recognition and protection of Mexican appellations of origin in the United Kingdom and vice versa, before the departure of the United Kingdom of Great Britain and Northern Ireland (the United Kingdom) from the European Union, on 31 December 2020. Among the benefits of the Agreement, the following stand out:

It will facilitate and promote bilateral trade in spirits under the principles of non-discrimination and reciprocity.

The new Agreement will grant protection against the usurpation of denominations and unfair competition, thereby benefiting both producers and consumers.

It will provide a framework of favorable certainty for the export and marketing of Mexican beverages in British territory, as well as for the creation of jobs and business opportunities in the sector.

 

Redacción Opportimes

Publicidad
Mostrar más
Botón volver arriba