On February 1, 2021, the government of the United Kingdom (UK) formally requested in a letter to New Zealand, the treaty’s depositary, its accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).
Yesterday, Wednesday, June 2, 2021, during the fourth ministerial meeting of the CPTPP Commission, ministers and officials from the countries of the free trade area, gave the green light to the start of accession negotiations with the United Kingdom.
It was therefore agreed that a working group would be set up to negotiate the terms of the UK’s accession to the Treaty.
CPTPP is a free trade agreement signed by 11 countries, however it only applies – for the moment – between Mexico, Japan, Canada, Australia, New Zealand, Singapore and Vietnam; while Chile, Peru and Brunei have not yet completed the process of adopting the treaty.
The CPTPP allows tariffs between member countries to be reduced by up to 95%, and with the admission of the UK, the nominal GDP of the area covered by the Treaty would be almost at the same level as that of the EU.
In this regard, UK International Trade Secretary Liz Truss said:
The UK government will publish its outline approach, scoping assessment and consultation response before negotiations start in the coming weeks.
Source: Noticias Bancarias, Reuters, El Universal, GOV.UK, Aristegui Noticias.
Following up with UK news, let’s not forget that Mexico and the UK signed the Trade Continuity Agreement and the Agreement relating to Article 12 of the Trade Continuity Agreement In December 2020.
The purpose of this agreement is to maintain preferential tariff preferences between both countries after the UK’s exit from the European Union.
As mentioned in our Legal Alert of April 30, both agreements had to be published in the Official Gazette of the Federation (DOF) in order to become legally binding in Mexico so that goods from the UK can benefit from tariff preferences.
Yesterday, Tuesday June 1, 2021, both Agreements were finally published in the DOF, as well as several instruments necessary to guarantee the preferential access of products between Mexico and the UK, including a mechanism to return tariffs paid on UK products as of January 1st. For more information, please see our Legal Alert of June 2, 2021.
This week, Index held the “third labor forum” event in which the Mexican ambassador to Canada participated. According to the media, the Ambassador said that the government of Mexico and Canada are planning to establish a working table to avoid conflicts that could trigger a USMCA dispute settlement mechanism.
More information: Milenio.
With the United Kingdom´s (UK) withdrawal from the European Union (EU), a new trade agreement was necessary between Mexico and the UK to maintain preferential tariffs and market access.
For this reason, in December 2020, the Trade Continuity Agreement between Mexico and the UK was signed, as well as the Agreement related to Article 12 of the Trade Continuity Agreement between Mexico and the UK. Both agreements are aimed at maintaining and expanding preferential market access between the two countries.
As mentioned in our Legal Alert of April 30, the Trade Continuity Agreement had to be published in the Official Gazette of the Federation (DOF) to become legally binding in Mexico.
Today, Tuesday, June 1, 2021, the Trade Continuity Agreement was finally published, entering into force on such date. The following decrees were published in the DOF:
In addition, the Mexican Ministry of Treasury also issued the Resolution that establishes the General Rules related to the application of the customs provisions of the Continuity of Trade Agreement between Mexico and the UK.
In this regard, Rules 2.2.2 and 2.2.3. provide the mechanism for the refund or compensation of duties paid by importers of goods that qualified as originating in the UK and were imported into Mexico as of January 1, 2021; as noted, this is the date that the UK’s exit from the European Union became effective, and prior to the entry into force of the Trade Continuity Agreement in Mexico.
In addition to the publication of the aforementioned decrees, the following five instruments necessary to guarantee preferential access for products between Mexico and the UK were published in the DOF:
The purpose of these instruments is to provide the necessary information to economic operators in Mexico regarding the requirements to access the preferential quotas provided in the Continuity Agreement.
The Trade Continuity Agreement establishes that Mexico and the UK will begin negotiations for an ambitious, modern and comprehensive free trade agreement as soon as there is an opportunity and within one year of the entry into force of this Agreement. In other words, before June 1, 2022, both countries commit to start negotiations for a free trade agreement that will seek to strengthen and expand preferential access between both markets.
Finally, both countries commit to make every effort to conclude the negotiations of the free trade agreement within a period of three years from the entry into force of this Agreement, that is, before June 1, 2024.