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UK and Mexico sign post-Brexit trade agreement

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Markets summary

The Maltese market closed in the green on Tuesday, with the MSE total index ending the session 0.839% higher to 8,516.811 points. The best performer was GO plc by adding 6.63% to close at 3.54, followed by 5.66% rise of Mapfre Middlesea plc and 4.71% jump of PG plc with a closing price of 2.24 and 2.00 respectively. The biggest fall was seen from FIMBank plc with a drop of 5.62% to close at 0.47, followed by 1.92% decline of Bank of Valletta plc to 1.02.

European shares for the most part finished near their session highs on Tuesday after what appeared to be positive reports on the prospects for a Brexit deal and optimism around the chances of an agreement on Capitol Hill for further fiscal stimulus. The pan-European Stoxx 600 index edged up 0.25% to 392.84, alongside a 1.06% advance to 13,362.87 for the German Dax although France’s Cac-40 was up by only 0.04% at 5,530.31.

Wall Street stocks closed higher on Tuesday following a fresh proposal for another Covid-19 stimulus package and the continued rollout of coronavirus vaccines across the country. At the close, the Dow Jones Industrial Average was up 1.13% at 30,122.31, while the S&P 500 was 1.29% firmer at 3,694.62 and the Nasdaq Composite saw out the session 1.25% stronger at 12,595.06.

UK and Mexico sign post-Brexit trade agreement to avoid harsh No Deal tariffs

The UK has signed a continuity trade deal with Mexico worth more than £5 billion to avoid tough tariffs on exports after Brexit, the government has announced.

International Trade Secretary Liz Truss said the agreement will allow the two countries to "take our trade to new heights" as it seeks to negotiate a further trade deal next year.

The UK-Mexico Trade Continuity Agreement is expected to benefit the automotive, pharmaceutical, textiles, agriculture, food and drink sectors, as well as other manufacturing industries.

The deal will keep tariffs on car and UK drinks exports at 0%, saving tens of millions of pounds in duties which would have been applied under World Trade Organisation terms.

The countries have also agreed to start negotiating a new free trade agreement next year which hopes to go further than the existing deal.

This article was issued by Nadiia Grech, Trader at Calamatta Cuschieri. For more information visit, www.cc.com.mt. The information, view and opinions provided in this article are being provided solely for educational and informational purposes and should not be construed as investment advice, advice concerning particular investments or investment decisions, or tax or legal advice. Calamatta Cuschieri Investment Services Ltd has not verified and consequently neither warrants the accuracy nor the veracity of any information, views or opinions appearing on this website.