While the UK is still in talks with the USA over a comprehensive trade deal, negotiators have concluded a Memorandum of Understanding (MoU) with the country’s state of Indiana.
The Government has also launched talks with the Mexican government over strengthening its current Free Trade Agreement (FTA) and appointed new trade envoys to South Korea, Canada, and Turkey.
New deal for the digital age
Mexico is the world’s 16th largest economy, and the Government says negotiating a ‘Mexico 2.0’ deal would secure a new, enhanced FTA for a digital age, which supports hi-tech jobs, industries of the future and grows our economy.
Mexico has a growing population and has become a major market for UK exporters, with demand for UK imports set to grow by 35 per cent by 2035.
The Department for International Trade (DiT) says it is in a strategically situated part of the world, serving as a gateway to the Americas as well as to the trans-Pacific region.
How important is the relationship?
The trade relationship between the two countries is already worth over £4 billion and UK negotiators are exploring moving into areas like services and technology.
The Government has stated that any agreement will have to uphold our high environmental, labour, public health, food safety and animal welfare standards and will protect the National Health Service.
The agreement with the American state of Indiana marks a milestone in trade relations with the US by signing its and is the first state-level trade and economic development MoU.
How will it affect investment?
It is hoped the move will allow barriers to trade and investment to be removed and allow businesses in the UK to invest, export, expand and create jobs.
The US state has an advanced economy and offers opportunities for UK firms, who are experts in areas like renewable energy, advanced manufacturing, and pharmaceuticals.
Springboard for growth
The UK is the seventh largest export market for Indiana, and the state buys $1.4 billion worth of goods from the UK. This agreement will act as a springboard to grow this even further.
In another move to boost international trade, Prime Minister Boris Johnson has appointed new trade envoys to boost British business in key markets including Canada, South Korea, and Turkey.
MPs Maria Miller, John Whittingdale and John Hutton are tasked with promoting UK trade, drive green economic growth, and encourage inward investment.
The three countries already represent a combined £54 billion of bilateral trade with UK.
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