U.K. Weighs Joining USMCA Pact as Hopes for U.S.-Only Deal Fade

The U.K. is exploring joining an existing free-trade agreement between the U.S., Mexico and Canada, a person familiar with the nation’s thinking said, a recognition the Biden administration won’t start negotiations on a bespoke deal any time soon.

The U.K. is conducting simultaneous negotiations around the world to replace its prior free-trade treaty with the European Union. So far it has struck deals with the EU, Japan and Australia, as well as multiple other trade-continuity accords.

Prime Minister Boris Johnson indicated Tuesday that he doesn’t expect to secure the free-trade pact he seeks with the U.S. before the next U.K. general election due in 2024. A trade deal with the U.S. was billed as one of the prizes of Brexit, so Johnson is under pressure to prove the biggest upheaval in British foreign policy in 50 years was worth it.

A spokesperson from the office of the U.S. Trade Representative said it hasn’t received a request to join the U.S.-Mexico-Canada Agreement, known as the USMCA, adding that there is no accession clause in the accord.

One of the deal’s negotiators, Kenneth Smith Ramos, who led technical talks for Mexico in 2017 and 2018, said that while it’s theoretically possible for the U.K. to join the USMCA, that would require consensus among the U.S., Mexico and Canada to accept the nation, a potentially tricky proposition.

The U.K. also would need to accept liberalization for goods that trade tariff free under the USMCA, he said. Mexico’s trade with the U.K. is governed by a December 2020 continuity agreement that extends the rules of the Mexico-EU deal that took effect in 2000 for three years after Britain’s departure from the EU. But that deal only opened about 60% of agricultural trade, making it more limited in scope than the USMCA, said Smith Ramos, a partner at consulting firm AGON.

Joining USMCA is just one option, according to the person who asked not to be identified because the discussions are private. Doing a series of smaller U.S.-U.K. deals on issues such as the free flow of data is another, the person said.

Addressing reporters at the White House at the start of a meeting with Johnson Tuesday, President Joe Biden said, “We’re going to talk a little bit about trade today and we’re going to have to work that through.”

Any U.K. effort to join USMCA would face major political and procedural obstacles and could be interpreted as an effort by Downing Street to play catch-up given the EU has separate trade deals with Canada and Mexico. USMCA is the successor to the North American Free Trade Agreement, which the Trump administration rebranded after two years of tough negotiations with its southern and northern neighbors.

Learn more about why Mexico is the ideal option for start-up Manufacturing in Mexico for your business.

Source: Bloomberg.com
If you would like to find out more about this topic or are interested in receiving a complimentary business case analysis for your operation in Mexico, please fill out this form or contact us at:

US toll-free: +1 (877) 698 3905

CAN toll-free: +1 (844) 422 4922

start@americanindustriesgroup.com
Please note that we do not accept job applications here. If you are interested in applying for a position, please visit the following link: https://www.americanindustriesgroup.com/jobs/




Related posts

November 29, 2021
Nokia ups investments in Mexico tech facility
Finnish telecom equipment supplier Nokia is upping investments in its technology lab in the Mexican city Guadalajara. Nokia said in a press release that it has […]
November 26, 2021
Accelalpha Inc. Expands Its Operations in North America with New Office in Mexico
Accelalpha announced today that it has opened a new office in Mexico City to expand its presence in North America in order to better serve its customers. The new teams […]
October 26, 2021
Latécoère Announces the Acquisition of Shimtech de Mexico
TOULOUSE, France–(BUSINESS WIRE)–Regulatory News: Latécoère (Paris:LAT), a leading partner of major international aircraft manufacturers, today announces the signing of the acquisition of Mexico-based Shimtech de Mexico […]
September 15, 2021
Guanajuato Automotive
European automotive firm to invest US $100 million in Guanajuato
A French automotive manufacturer has confirmed that it will invest US $100 million in a new plant in San Miguel de Allende, Guanajuato. Le Bélier plans […]
September 15, 2021
Saltillo Seats
HNI Corporation to Open Seating Manufacturing Facility in Saltillo, Mexico
NI Corporation (NYSE: HNI) announced it is opening a new office furniture manufacturing plant in Saltillo, Mexico. The facility will provide additional capacity to meet HNI’s growing […]
September 1, 2021
Aerospace logistics in Mexico
Mexico signs agreement aimed at recovering U.S. aviation rating
MEXICO CITY, July 26 (Reuters) – Mexico has signed an agreement with the U.S. Federal Aviation Administration (FAA) aimed at helping the country recover its Category […]