Mexico Cliff Edge Avoided But Canada Looms 

Nov 10, 2023

Reacting to news of an extension on cumulation trade terms with Mexico, William Bain, BCC Head of Trade Policy, said: 

“The BCC has been urging the UK Government to reach bridging arrangements with Mexico and Canada for some time on extended cumulation within the rules of origin. 

“This will allow for EU content in UK exports to continue to form part of longstanding supply and sourcing chains without tariffs being applied.  

“Today’s welcome news permits the continuation of the current arrangements until the conclusion of the negotiations with Mexico, due to recommence in January.  

“This avoids a key cliff edge for manufacturing exporters, who would otherwise have been facing a significant increase in costs.  

“Now we need similar clarity on EU material in UK exports to Canada. A deadline is looming next April, and we would urge both sides to quickly reach a similar agreement to remove uncertainty for manufacturing exporters on both sides of the Atlantic.” 

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