With the ink now dry on the trade deals with Australia and New Zealand, the UK Government has turned its attention away from the Southern hemisphere and is now busy negotiating trade agreements with India, Mexico and Canada.
Discussions about the UK’s bid to join the Comprehensive and Progressive Trans-Pacific Partnership (CPTPP) – the 11-country trading bloc located around the Pacific Ocean – continue at pace and views have been sought on the prospect of a deal with Israel and the Gulf.Trade negotiations with the US, whilst stalled, also remain open.
Over the last two years, on average UK food and drink exports to Mexico were worth over £136 million
The most recent development is the launch of negotiations with Mexico. Whilst the UK and Mexico have already got a trading partnership, these new negotiations give the UK the opportunity to agree something bespoke.
Large agricultural exporter
Over the last two years, on average UK food and drink exports to Mexico were worth over £136 million and there is room to grow trade particularly in dairy and pork products. However, UK negotiators will need to be mindful that Mexico is a large agricultural exporter and safeguards should be built into the agreement to insure against imports, particularly of beef or eggs, which don’t meet our high standards.
Like Mexico, the discussions with Canada are building on an existing trading relationship. Here there are opportunities again for dairy, with Canada representing a high value market for speciality cheeses and butter.
Strengthening relationships
Canadians are already buying our red meat and there is opportunity to strengthen this relationship, especially in the food service market. However, there are two sides to the story and in return, we can expect Canada to be aggressive in its demands for access to our beef market.
Both bilateral negotiations are happening against the backdrop of the UK seeking to join the CPTPP. This is an interesting deal for agriculture, with the Southeast Asian members representing attractive markets where changing consumer tastes and a growing middle class means demand for imports is increasing.
One bite of the cherry
However, with Canada and Mexico also in membership of the CPTPP, it will be important that they only get one bite of the cherry when it comes to negotiating access to our prized markets.
NFU Cymru is actively working to ensure the interests of Welsh farmers are promoted and protected in all trade negotiations. We regularly meet with government officials and the subject is always on the agenda at a political level, both in Westminster and Cardiff. We also continue to work in partnership with others in the sector to ensure industry is presenting a united front.