Introduction
President Trump’s imposition of tariffs not only on China but also on all its trade partners, including Mexico and Canada, has highlighted the vulnerability of over-reliance on the US market. In this context, Mexico’s participation in the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) has gained strategic importance, both as a means of diversifying trade and strengthening the advantages of the United States-Mexico-Canada Agreement (T-MEC).
Understanding the CPTPP
The CPTPP connects Mexico with eleven dynamic economies in the Asia-Pacific and Americas, including Japan, Australia, Vietnam, and now the United Kingdom, whose accession process concluded in December 2024. This agreement offers preferential access to markets representing nearly 15% of global GDP and promotes modern standards in digital trade, intellectual property, and services.
Unlike the T-MEC, the CPTPP reduces exposure to bilateral political pressures by providing more stable and multilateral rules.
Complementing the T-MEC
For Mexico, the CPTPP complements rather than replaces the T-MEC. By diversifying markets and supply chains, it strengthens Mexico’s economic resilience against protective measures like those recently announced by Trump. Moreover, it allows Mexican companies to position themselves as a strategic bridge between North America and Asia, attracting investments interested in leveraging simultaneous access to both trade blocs.
UK’s Accession: A Crucial Step
Only Mexico and Canada have yet to ratify the UK’s accession to the CPTPP. This step is essential for Mexican producers to gain preferential access to the British market under terms better than those found in the bilateral trade agreement with the UK. The UK is the world’s sixth-largest economy and a high-value-added trading partner, being one of Mexico’s leading investors with nearly $17 billion and a significant trade partner.
The UK’s inclusion further solidifies the agreement as a cornerstone of 21st-century global trade, opening new opportunities for Mexican agroindustrial, automotive, and advanced manufacturing products.
Strategic Trade Policy for Mexico
Mexico’s trade policy should be strategic and proactive. In an uncertain geopolitical environment, embracing the CPTPP and other complementary trade agreements is a bet on greater strategic autonomy, risk diversification, and economic integration based on modern rules and diverse alliances.
Ratifying the UK’s accession to the CPTPP would send a strong signal that Mexico is committed to trade based on norms and seeks to maintain extensive economic relations.
Key Questions and Answers
- What is the CPTPP? The Comprehensive and Progressive Agreement for Trans-Pacific Partnership is a free trade agreement between 11 countries in the Asia-Pacific and Americas, including Mexico.
- How does the CPTPP benefit Mexico? It diversifies trade markets, strengthens resilience against protective measures, and positions Mexican companies as a bridge between North America and Asia.
- Why is the UK’s accession to the CPTPP important for Mexico? It grants preferential access to the UK market, solidifies the CPTPP as a cornerstone of global trade, and opens new opportunities for Mexican products.
- What is the significance of a strategic trade policy for Mexico? It ensures greater autonomy, risk diversification, and adherence to modern rules in an uncertain geopolitical environment.
