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Overview
Mexico hosts one of the strongest advanced manufacturing sectors in Latin America, particularly in the automotive industry. Manufacturing accounts for around 20% of Mexico’s gross domestic product (GDP). Combined with ongoing technological advancements, supportive government initiatives such as Plan Mexico, and an extensive network of free trade agreements (FTAs), the country presents an attractive export base for UK advanced manufacturing companies.
Despite its strengths, gaps remain across parts of the supply chain, creating opportunities for UK firms looking to enter the market. Production processes such as aluminium extrusion and the stamping and casting of stainless steel often rely on imports, highlighting areas where UK expertise can add value.
These gaps have created opportunities across Tier 1, 2, and 3 suppliers, where competition is high and there is increasing demand for productivity and innovation. Mexican firms are actively seeking partnerships and collaborations to introduce new technologies and enhance competitiveness.
The UK’s FTAs with Mexico provide a strong framework to support businesses in seizing these opportunities by improving market access, reducing trade costs, strengthening supply chains, and supporting the UK’s Trade and Industrial Strategy objectives.
Trade agreements with Mexico
The UK has 2 free trade agreements (FTAs) with Mexico:
- the UK-Mexico Trade Continuity Agreement (TCA) which entered into force on 1 June 2021
- the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement including 12 countries (Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam), which entered into force between the UK and Mexico on 22 June 2026
The UK-Mexico TCA should be read in conjunction with the following Parliamentary report as certain elements therein have undergone slight changes to adapt the existing agreement to the UK outside the EU.
The UK-Mexico TCA will remain in force alongside CPTPP. At times, you will need to specify which agreement you choose to trade under (notably when applying rules of origin), but benefits from either agreement will mostly apply automatically. Our guides attempt to highlight where businesses may need to make an explicit decision.
CPTPP entry into force and ratification
As of 22 June 2026, CPTPP is in force between the UK and:
- Australia
- Brunei
- Chile
- Japan
- Malaysia
- Mexico
- New Zealand
- Peru
- Singapore
- Vietnam
This means that the UK can access CPTPP provisions with these countries.
Canada has have not yet ratified the terms of the UK’s accession. This means that the UK cannot yet access CPTPP provisions in this country.
This guidance will be updated following the remaining country's ratification of the terms of the UK’s accession to CPTPP and will include when CPTPP will enter in force between the UK and the relevant remaining country.
Opportunities for UK advanced manufacturing suppliers in Mexico
Automotive
Mexico is the world’s fifth largest vehicle producer and a major export hub within global supply chains. Contributing around 4 to 5% of GDP, the sector sustains demand for high-quality components, engineering expertise and innovation.
UK companies are well positioned to supply specialist components, advanced materials, and electric vehicle (EV) technologies that enhance performance, efficiency and compliance with international standards, particularly where niche, high-specification capabilities complement Mexico’s large-scale production base.
Automation and smart manufacturing
Mexico’s shift toward smart manufacturing and Industry 4.0 is driving demand for technologies that improve productivity and efficiency. While large original equipment manufacturers are leading adoption, uptake among Tier 2 and Tier 3 suppliers remains uneven, creating opportunities for UK firms specialising in automation, robotics, digital manufacturing, and systems integration.
Growing pressure to meet global quality standards and remain cost competitive is increasing demand for solutions such as predictive maintenance, real-time analytics, and process optimisation, particularly where these integrate smoothly with existing systems and deliver clear productivity gains.
High-value inputs and technology
Despite its advanced manufacturing base, Mexico imports much of its machine tools and manufacturing equipment, especially in specialised areas. As it moves up the value chain, demand is growing for precision components, advanced materials, specialised machinery, and high-spec industrial services not readily available domestically.
This creates strong opportunities for UK advanced manufacturing firms offering specialist expertise and differentiated technologies that integrate into existing supply chains and support long-term industrial upgrading.
Relevant CPTPP provisions for UK businesses
New Rules of Origin options
The origin of a good is where it has been grown, produced or manufactured, and is not necessarily the country where the good is shipped or bought from. For goods to receive a preferential tariff, the goods must meet the specific Rules of Origin for that agreement. The UK-Mexico Trade Continuity Agreement (TCA) and CPTPP have different Rules of Origin that must be met to receive that agreement’s preferential tariffs. UK businesses may choose which Rules of Origin they will meet to receive a preferential tariff.
In the advanced manufacturing industry, some finished products may have complex supply chains, where the FTAs provide significant benefits to receiving preferential tariffs on goods with varied originating components. Under the UK-Mexico TCA, businesses may count materials sourced from the EU towards their UK originating inputs. Under CPTPP, goods sourced from other CPTPP countries count towards products meeting CPTPP Rules of Origin and receiving CPTPP preferential tariffs.
For example, a car door assembled in the UK with hinges made in Malaysia, and window switches made in Japan may count towards being originating in the UK if they meet the product specific rules. This would then mean the exported car door could receive preferential tariffs when exported to all CPTPP countries (not just Malaysia or Japan).
For more information on the Rules of Origin requirements and how to claim for preferential tariff treatment, see our Rules of Origin explainer and our Tariffs and Customs explainer.
Paperless trading
Paperless trading refers to the conduct of trade activities using electronic rather than paper documents. This reduces administrative costs and improves efficiency of processes, benefiting UK businesses across all sectors.
The UK and CPTPP countries are committed to facilitating the flow of trade activities using electronic trade documents.
CPTPP countries have committed to making trade administration documents available in electronic form and to accept electronic versions of those documents. This refers to documents which are required in connection with the import or export of a good and must be presented to customs authorities.
Beyond CPTPP, the UK also enables commercial trade documents that use English law to be accepted in electronic form. This includes documents such as bills of lading, promissory notes, and bills of exchange. This was enabled by the Electronic Trade Document Act.
This complements the commitments made on paperless trading related to trade administration documents required by the UK government or other CPTPP countries as part of the import-export process. Find more information about the UK’s Electronic Trade Documents Act.
You can find more resources on how you can digitalise your supply chains on the Electronic Trade Documents Information Hub.
Different countries are at different stages of legislating for paperless trading and trade digitalisation. The United Nations Economic and Social Commission for Asia and the Pacific has created an interactive Model Law on Electronic Records (MLETR) tracker where you can view different countries’ progress.
Technical Barriers to Trade
CPTPP will mean UK based conformity assessment bodies will be eligible to apply to carry out conformity assessments against Mexican regulations. This will make it easier for UK manufacturers to have their goods assessed against Mexican regulations prior to exporting, rather than having to send samples to Mexico to be assessed there.
This could reduce the time and costs compared with having conformity assessments take place in Mexico, which could especially benefit small and medium-sized enterprises (SMEs) for whom the costs of overseas testing can be prohibitively expensive.
Getting goods through customs
Useful information for importing goods into Mexico can be found on the following websites:
- Mexico Customs Authority (Agencia Nacional de Aduanas Mexico)
- frequently asked questions (FAQs) for using Mexico's Single Trade Window (Ventanilla Unica)
- prohibited items for import into Mexico (please note that commercial samples of controlled products are also subject to these regulations)
- guidance for importing samples
If you are importing goods from Mexico, you can use the Trade Tariff Look up tool on GOV.UK to find the current list of goods and duty rates. There is also a step-by-step guide on how to import on GOV.UK.
Opportunities for digital trading
Electronic authentication and electronic signatures
Electronic signatures and electronic authentication increase trust in e-commerce by helping to verify that transactions, and the people behind them, are genuine. Strengthening the legal validity of electronic signatures provides greater confidence that transactions can be concluded through electronic means.
By using electronic signatures and/or electronic authentication, you can complete transactions in a matter of minutes regardless of where your counterpart is, reducing costs and simplifying processes.
CPTPP ensures that electronic signatures are considered valid by all CPTPP countries, and individuals and businesses can confidently use them.
However, CPTPP countries might impose specific criteria regarding electronic signatures, including some circumstances where electronic signatures are not accepted. You should check local regulations for more information.
You have the freedom to determine the best way of authenticating your transaction. However, for some transaction categories, there can be specific requirements.
Supporting your export journey
Doing business in Mexico
Mexico has a population of around 131 million people, making it one of the largest consumer and labour markets in the world. In economic terms, Mexico is one of the world’s largest economies – it ranks around 15th globally and second in Latin America and the Caribbean. This scale, combined with a large industrial base and strong domestic demand, makes Mexico an important market for international business opportunities.
From a business culture perspective, Mexico is generally considered a high-context culture, where successful communication and outcomes depend on relationships. Communication tends to be relatively formal, especially in first meetings and when engaging with senior counterparts, with clear respect for hierarchy and titles. Face-to-face interaction remains especially important for building trust, strengthening relationships, and moving commercial conversations forward. While virtual engagement is common, in-person meetings are still highly valued in many sectors and can play a decisive role in establishing credibility and long-term partnerships.
In relation to the existing trade relationship, Mexico is the UK’s 39th largest export market. Total UK exports to Mexico amounted to £3.7 billion in the 4 quarters to the end of Quarter 4 2025.
For the latest statistics on trade between the UK and Mexico, see Mexico’s trade and investment factsheet.
Department for Business and Trade support
The Department for Business and Trade (DBT) helps businesses export, drives inward and outward investment, negotiates market access and trade agreements, and champions free trade. Helpful links, tools and services available from DBT and wider government include:
Export Support Service (ESS) team
Get support on how to do business abroad. Businesses in Wales can also access support from Business Wales.
Export Support Service – International Markets (ESS-IM)
DBT's overseas in-market export support service for SMEs with high-export potential. Our International Market Advisers provide tailored support and market introduction information to new and current UK exporters looking to enter or expand into new markets. The service may be accessed globally with International Markets teams in South Asia, China, the Middle East, Africa, Eastern Europe, North America and Latin America.
Sign up to access webinars on how to grow your international sales.
Information on finance and insurance for UK exports.
Trade and investment factsheets
The latest statistics on trade and investment between the UK and individual overseas partners.
Overseas business risk profiles
Information for UK businesses on political, economic and security risks when trading overseas.
Advice and warnings about travel abroad, including entry requirements, safety and security, health risks and legal differences.
Check or report a trade barrier
If you encounter an issue when exporting to any country – report the issue and UK government officials will be able to assess the issue and consider the options we have open to addressing it as appropriate.
Search for your specific product to find applicable tariffs for each market, explore rules of origin and step-by-step help on customs procedures.
Check import duties and allows you to check the status of available tariff rate quotas.
Useful resources
To find out more about export opportunities to Mexico, please consult DBT’s market guide. This page will also help you understand more about business culture in Mexico, and links to existing trade barriers with this market.
Prior to export, you must be aware of local regulations and import conditions in Mexico that apply to your goods or services. This can include tax considerations, labour laws, intellectual property rules, labelling and packaging regulations, among others.
For further information related to local regulations, business culture, or to find a local lawyer, translator, importer or distributor, use the following contacts:
- DBT’s Export Support Service International Markets team
- get in touch with DBT at the local British Embassy
- get in touch with the British Chamber of Commerce in Mexico
For information on political, economic and security risks when trading with Mexico, see:
Legal disclaimer
This document is provided as an information guide only and should not be relied on as a substitute for your own research or independent advice.
No investment and/or business decision should be made solely on the basis of information presented in this document. It is recommended that an independent due diligence investigation is conducted before entering into engagement with any individual, business or other organisation mentioned.
The Department for Business and Trade accepts no responsibility for any loss or damage caused to any person as result of any error, omission, inaccurate or misleading statement in this document.
The accuracy, completeness or timeliness of the content of any website mentioned in this document is not guaranteed in any way, implied or explicit.
