WT/REG456/M/1  
12 December  2022 
(22-9225) Page: 1/3 
Committee on Regional Trade Agreements  
Hundred and Fifth Session   
 
TRADE CONTINUITY AGREEMENT BETWEEN THE UNITED KINGDOM AND MEXICO  
(GOODS ) 
NOTE ON THE MEETING OF  14 NOVEMBER  2022 
Chairm an: Ambassador H.E. Mr. Taeho LEE (Republic of Korea ) 
1.1.  The 10 5th Session of the Committee on Regional Trade Agreements (hereinafter "CRTA" or the 
"Committee") was convened in Airgram WTO/AIR/RTA/ 30/Rev.1  dated 4 November  2022.  
1.2.  Under Agenda Item F.V of the Session, the CRTA considered the Trade Continuity Agreement 
between the United Kingdom and Mexico, goods  (hereinafter "the Agreement"). The Chairman  stated 
that the factual presentation had been prepared by the Secretariat on its own responsibility in full 
consultation with the Parties, in accordance with paragraph 7(b) of the Transparency Mechanism for 
Regional Trade Agreements (document WT/L/671).  
1.3.  The Agreement had entered into force on 1 June 2021. It had been notified on 28 June 2021 
under Article  XXIV:7(a) of the GATT  1994 and Article V:7(a) of the GAT S 
(documents  WT/REG456/N/1 and S/C/N/1060, respectively ) as an agreement establishing a free 
trade area for trade in goods and services  within the meaning of Article XXIV of the GATT 1994 and 
Article V of the GATS, respectively . The text of the Agreement a nd its Annexes was available on the 
Parties' official websites and in the WTO RTA database. Between 1 January 2021 and 31  May 2021, 
the Parties granted each other preferences on a provisional basis through an exchange of letters. 
The Factual Presentation o n the goods aspects of the Agreement (document  WT/REG456/1 dated 
5 September 2022) and questions and replies on the Agreement (document WT/REG456/2  dated 
21 October  2022) had been distributed.  The services aspects of the Agreement would be considered 
at a later stage once the Parties have negotiated specific commitments on trade in services. The 
factual presentation on services was therefore on hold.  
1.4.  The representative of the United Kingdom  said that the Agreement had been  signed on 
15 December 2020 and had been in force since 1 June 2021. She thanked the Secretariat for 
preparing the excellent factual presentation on the A greement and the delegation of Mexico for its 
cooperation and input.  
1.5.  The Agreement  reaffirm ed the historically strong trade relationsh ip between the UK and Mexico 
and provide d continuity and predictability for businesses, individuals, and stakeholders in both 
countries.  
1.6.  Mexico was the UK 's second largest trading partner in Latin America and  46th trading partner 
globally. Mexico 's economy  was worth almost USD 1.3 trillion in 2021, according to World Bank data, 
and total trade between the UK and Mexico was worth GBP 4.2 billion in 2021, an increase of just 
over 12% from the previous year.  That momentum ha d continued : in the 12 months to Aug ust 2022 
UK exports of goods to Mexico ha d increased by almost 13%. Key export goods from the UK to 
Mexico include d medicinal and pharmaceutical products, whilst both countries have strong export s 
in cars.  
1.7.  The Agreement  text was in short form, an approach used in other UK continuity agreements 
that had been ratified since February 2019.  It broadly replicate d the effects of the EU -Mexico 
Economic Partnership, Political Coordination and Cooperation Agreement , which had entered into WT/REG456/M/1  
 
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  force in 2000. That include d the establishment of institutional arrangements between the Parties 
based on existing structures, allowing for the ongoing management of the Agreement . 
1.8.  The trade substance of the Agreement  remain ed broadly the same. Titles II (political dialogue) 
and VI (co -operation) of the EU -Mexico Agreement had not been retained. The joint approach to 
political dialogue and co -operation between the UK and Mexico had been  reflected in the joint political 
declarat ion accompanying the signing of the Agreement . 
1.9.  The provisions in the EU -Mexico Agreement were applied mutatis mutandis  with technical 
changes necessary to apply the Agreement  as if it had been concluded between the UK and Mexico 
in the first instance.  Wher e substantive amendments had been  required to ensure operability in a 
bilateral context, or where parties agreed that mutatis mutandis would not deliver adequate certainty 
over rights and obligations, detailed amendments had been included in the Annexes to  the 
Agreement .  
1.10.  In general, where there were trade provisions of the EU -Mexico Global Agreement that 
require d an action within a certain time period which ha d not yet ended under that agreement, the 
time period became part of the Agreement , taking on only the remaining time in which the action 
must occur. Where time periods in the EU -Mexico Global Agreement had ended, any ongoing right 
or obligation continue d to apply between the UK and Mexico and the time period had not been 
incorporated into the Agreement . Time periods that relate d to a procedure or other administrative 
matter, such as a review, committee procedure or notification were not affected and therefo re 
started again when the Agreement  enter ed into force.  
1.11.  Across the whole Agreement, most of the institutional provisions and bodies provided for in 
the EU -Mexico Agreement had been  incorporated and retained mutatis mutandis , although some 
modifications had been made to the naming and function of th ose bodies to ensure they were 
operable in a bilateral context.  
1.12.  Finally, Article IX of the Agreement  establishe d that both Parties would commence 
negotiations for a new UK -Mexico FTA within one year of entry into force of the Agreement. They 
had launched new FTA negotiations on 20 May 2022 and were looking forward to deepening the 
relationship with Mexico.  
1.13.  The representative of Mexico  thanked the WTO Secretariat for preparing the factual 
presentation of the Agreement and the delegation of the United Kingdom for their excellent 
coordination in their joint efforts.  
1.14.  Following the announcement of the UK's withdrawal from the European Union, Mexico and the 
UK had begun a dialogue for the signing of a Trade Continuity Agreement  that would maintain the 
preferential trade regime and legal certainty that they had enjoyed under the FTA between Mexico 
and the European Union.  The Agreement  had been  signed o n 15 December  2020 and entered into 
force on 1  June 2021.  
1.15.  The Agreement  maintained the preferential tariff regime and the rest of the disciplines in place 
under the Mexico -EU FTA, thereby preventing any impairment or disruption to bilateral trade with 
an important trading partner. It also offered preferential access for Mexican agricultural products 
with quotas that better reflected current trade flows with the UK.  
1.16.  The Agreement  also represented a platform for further liberalizing trade and modernizing the 
Agreement itself, through a clause providing for the launch of negotiations, in the first year of the 
Agreement's entry into force, for an ambitious, modern and comprehensive free trade agreement 
with high standards. Accordingly, the second round of negoti ations between the two parties had 
taken place from 31  October to 11  November 2022. 
1.17.  The UK was the fifth largest economy in the world and the second in Europe, generating 3.2% 
of global GDP.  It also rank ed as the seventh top trading country, accounting for  3% of global trade  
and representing a potential market of over 67  million consumers.  
1.18.  For Mexico, the Agreement  was a necessary trade and investment strategy for maintaining 
trade preferences and providing legal certainty to both countries.  WT/REG456/M/1  
 
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  1.19.  According to th e Bank of Mexico, the first year of the Agreement 's entry into force saw bilateral 
trade between Mexico and the UK grow by 15.8% compared to 2020.  The bilateral trade in 2021 
amounted to USD 5,129  million.  In just the first year of entry into force of the Agreement , Mexican 
exports exceeded the amount reached in the past four years.  The UK was Mexico's sixteenth largest 
trading partner globally and the fifth in Europe. Meanwhile, it was the eighth largest source of foreign 
direct investment in Mexico.  She reiterate d Mexico's commitment to continuing to enhance the ties 
of cooperation and friendship that b ound their  nations.  
1.20.  The Chairman  opened the floor for comments by Members.  
1.21.  The representative of the United States  thanked the UK and Mexico for their presentations.  
1.22.  The representative of the European Union  thanked the UK and Mexico for their presentations.  
1.23.  The representative of Japan  thanked the Parties for their comprehensive and informative 
statements. He appreciat ed efforts by the Parties and the Secretariat in preparing the factual 
presentation. He wished the Parties success in the implementation of the Agreement.  
1.24.  The representative of Canada  thanked the Members who took part in the work of the 
Committee. He thank ed the Parties for their presentation of the Agreement.  
1.25.  The Chairman  noted that the consideration of the Trade Continuity Agreement between the 
United Kingdom and Mexico had allowed the Committee to clarify a number of questions and 
conclude oral discussi on of the RTA in accordance with paragraph 11 of the Transparency 
Mechanism. Any delegations wishing to ask follow -up questions were invited to forward submissions 
in writing to the Secretariat by 21 November 2022 and the Parties were asked to submit repli es in 
writing by no later than 5 December 2022. In accordance with paragraph 13 of the Transparency 
Mechanism all written submissions, as well as the minutes of the meeting would be circulated 
promptly, in all WTO official languages, and made available on the WTO website.  
1.26.  The Committee took note  of the comments made.  
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