The Senate of the Republic of Mexico has warned that Brexit could delay the planned update of the Global Agreement between the Central American country and the EU. EurActiv Spain reports.
In a document published by the Gilberto Bosques Centre of International Studies, the upper chamber insisted that it wants to have the deal done and dusted by the end of the current presidential term, in 2018, but that from Mexico’s point of view, things have now changed.
“If indeed the United Kingdom begins the process of withdrawing from the Union, the country should approach the negotiations aware that the bloc will not have the economic weight it once did,” read the document.
The Mexican government claims that it has draft treaty waiting in the wings and that the two countries will be able to start hashing out a commercial agreement, but it is “unlikely” to happen this year.
“Mexican companies will not be able to make decisions about their place in the country until at least 2017,” warned the Senate.
The legislative body also added that “the promise to double British exports over four years remains in doubt, as it is uncertain whether the UK will retain its status at Mexico’s sixth most important partner after it leaves”.
Since the referendum, Mexico has announced public spending cuts of 31.7 billion pesos ($1.7 billion), as well as possible changes to monetary policy, in order to stave off financial volatility.
The Senate’s report has analysed the circumstances and consequences of the 23 June referendum and insists that “the key conclusion” is that “the benefits of globalisation reach all citizens and do not just stagnate with the elites and the cities”.
The document also concluded that it is no coincidence that there was a link between how the different regions of the UK voted and their socio-economic status.