UK’s Relationship with Mexico

James Gray Excerpts

Thursday 7th September 2023 Westminster Hall

[James Gray (in the Chair)]

Order. As the right hon. Member for Esher and Walton (Dominic Raab) has only just arrived in the Chamber, I am not sure that that would be appropriate. If the Minister would like to continue—

[David Rutley]

On this occasion, given that this is a former Foreign Secretary, I think, with your permission, Mr Gray—

[James Gray (in the Chair)]

No, I do not think so at all. The right hon. Gentleman may be a former Foreign Secretary, but he was not here for the debate; he has just arrived in the Chamber. He may not intervene, and the Minister will continue his winding-up speech.

[David Rutley]

I bow to your judgment, Mr Gray.

Another key thing in the relationship is about building capacity and building strength on both sides of the relationship. We are absolutely committed to doing that to create a sense of genuine partnership. With existing free trade agreements with 46 countries, and others on the way, Mexico is without a doubt a titan of free trade; and with the second largest economy in Latin America, Mexico’s demand for imports is only set to grow. We look forward to using our bilateral relationship to give fresh opportunities to British businesses across multiple sectors.

I did not agree with absolutely everything that the hon. Member for Aberdeen North (Kirsty Blackman) said, but she said many wise things. She may already know this stat, but last year alone, whisky exports were up by 22%. I have to say that, for a teetotaller, I know a lot about the flow of spirits that sees whisky going from one side and tequila the other way. I know that Members here appreciate that.

As we look to this mature trade relationship, there are of course opportunities, particularly in offshore wind and particularly in north-east Scotland. There are huge opportunities across the region, including in north-east Brazil, as my hon. Friend the Member for Dudley North (Marco Longhi) knows as the trade envoy for Brazil, and in Costa Rica and the US. Wherever I go, we talk about this relationship and these opportunities.

The recently signed comprehensive and progressive agreement for trans-Pacific partnership—known as the CPTPP to its friends—presents us with significant opportunities. British businesses will benefit from enhanced access to the Mexican and other markets. Our exporters will enjoy reduced tariffs when selling to Mexico, including on our high-quality beef, pork and apples, and UK consumers will pay less for Mexican products such as honey and chocolate. I say gently to the hon. Member for Aberdeen North, because I know that she cares about this, that animal welfare protections are and will continue to be in place. My right hon. Friend the Prime Minister and other Ministers have set that out, as I did when I served several years ago as the Minister with responsibility for food.

British businesses will benefit from enhanced market access without a doubt. Our friends in Mexico know how keen I am for them to ratify the UK’s accession to the CPTPP soon. It was the clear focus of my recent visit. Also during that visit, we talked a lot about the third round of negotiations on the UK-Mexico free trade agreement. That will be an important pillar of our relationship, and the opportunities that it will present to develop exports in both directions are huge. We have had three productive rounds of FTA negotiations so far. Both countries are united in their objective to build a bilateral agreement to complement the CPTPP and provide a solid framework in which our bilateral trade relationship can flourish, including by strengthening commitments to support small and medium-sized enterprises, innovation, trade and gender equality. Together with colleagues in the Department for Business and Trade, I am determined to ensure that the new deal adds value to the UK economy and brings benefits across the country, as well as to our friends in Mexico.

I very much hope that more UK companies will take up the trade opportunities that anybody who goes to Mexico will see. When I was in Guadalajara, I was able to understand more about the benefits that Diageo and AstraZeneca see in that great city. With Mexico’s increasing expertise in advanced manufacturing, the opportunities for friendshoring and closer relationships should be clear to all. We need to ensure that those opportunities are made fully available to UK companies and bring them to Mexico.

There were a few references to a potential trade envoy to Mexico. I know that that issue has been raised on a few occasions. The Government continue to review countries where such an appointment would be of greatest benefit. Obviously, the ultimate decision is for the Prime Minister, but my hon. Friend the Member for Dudley North does an outstanding job in Brazil, and my hon. Friend the Member for Fylde (Mark Menzies) does an amazing job in Argentina, Chile, Colombia and Peru. The comments made today have been fully noted, and I am sure that the work that the hon. Member for Liverpool, Walton has done will be noted in any conversations or decisions about this particular opportunity.

We recognise that in a debate about Mexico it is important to address and acknowledge the complex issues of human rights. That has been a concern in the country for many years, and it continues to be an area of focus. I recognise the important work of our ambassador, Jon Benjamin, who has been referenced by many people in this debate. He has a principled, patient and passionate stance, which is exemplary, and he is seeking to engage at the appropriate levels in Mexico. There is no question but that it is a dangerous country in which to be an environmental activist or a journalist.