This will build on a number of successful UK-backed programmes in the country, and will open up the Mexican market to UK businesses in the energy, future cities and financial services sectors.
By helping to improve Mexico’s business environment and supporting the Mexican government to develop policies that foster an open market, the investment, worth around £60 million over the next four years, will boost the longstanding UK-Mexico partnership, increase prosperity for both countries, and create opportunities for new business, including those from the UK.
The UK has supported a number of successful programmes in Mexico in recent years, including the creation of a competitive renewable energy market, which has already resulted in millions of pounds worth of business for UK companies.
The new prosperity programme will also increase the country’s recovery and resilience efforts following the recent earthquakes by promoting better infrastructure projects and increasing access to financial products such as insurance. Currently, just 5% of Mexicans have building insurance, while more than half of the population has no access to any financial services at all.
Foreign Secretary Boris Johnson said:
Britain has had a close relationship with Mexico ever since the UK became the first European country to recognise its independence almost two centuries ago. The relationship has endured to this day, and our two countries continue to strengthen links in areas as diverse as trade, security, culture, education and tourism.
This new funding will give a significant boost to Mexico’s economic development and reform, which is good news for the UK. Mexico is already implementing an ambitious package of economic reforms, including opening up the energy and telecom sectors. Helping Mexico to build stable, well-regulated markets and reduce barriers to trade will create more opportunities for British companies.
Our trade with Mexico stood at more than £3.6 billion in 2015, but the potential is much greater. This programme is the first step in unlocking that potential, to the benefit of both Mexico and the UK.
Notes to Editors
The UK’s work in Mexico
In 2016 the UK supported local authorities to introduce cost-effective ways to encourage people to use alternative transport to improve urban mobility in Mexican cities. The success of this work led the Mexican government to allocate 15% of its Metropolitan Fund for sustainable mobility, which in turn lead to increased opportunities for British companies.
The UK helped Mexico to adopt new financial mechanisms by supporting the design of Mexico’s Green Bonds market from 2014 to 2017. We also assisted in the creation of a new Advisory Council which helped create a new multi-billion dollar market for Green Bonds, and supported the creation of the Mexican carbon platform to trade emissions with other markets.
In 2015 we helped develop a Community Policing model to increase trust in Mexico’s police forces, an initiative that was publicly welcomed by President Pena Nieto. A strengthened business environment is good for UK business.
Figures from the Mexican Association of Insurance Agents suggest that just 5% of the Mexican population has buildings insurance, only 15% have life insurance, and more than 50% of the population have no access to any financial services product.
The Guest of Government visit
The talks form part of a Guest of Government visit by the Foreign Minister on 17-19 October, during which he is also meeting the Chancellor of the Exchequer, Secretary of State for International Trade, HRH The Duke of York and The Lord Mayor of The City of London.
The Foreign Ministers are also expected to discuss a range of other issues, including the two country’s shared positions on Venezuela and North Korea, and how they can work together to tackle climate change and the illegal wildlife trade.
They will also discuss how the UK and Mexico can further strengthen economic ties, including through high level economic talks that are due to take place in Mexico City in 2018.
Foreign Minister Videgaray’s visit follows successful visits to Mexico by the then Foreign Secretary Philip Hammond in May 2016 and Secretary of State for International Trade in July 2017, and a visit to the UK by the Mexican Minister of Economy in April 2017.
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Link: Press release: Boris Johnson announces new prosperity programming for Mexico
Source: Gov Press Releases