New Opportunities arise from the recently agreed free trade agreement
From developments in precision farming technologies to innovations in sustainable crop protection, advancements in the UK’s agri-tech sector demonstrates a commitment to leveraging technology to enhance agricultural practices. This represents a strategic opportunity to align with the evolving needs of Chile, Peru, and Mexico, supported by the UK’s new membership of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) which can support UK businesses exporting to these markets.
CPTPP is a Free Trade Agreement (FTA) between 12 economically diverse countries: Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK, and Vietnam. Its objective is to facilitate trade through harmonised standards and reduced trade barriers. UK businesses will not be able to trade under CPTPP with Mexico until it approves the UK’s accession to the Agreement.
Thriving agricultural industries in Chile, Peru, and Mexico are creating a wealth of new opportunities for UK agri-tech companies. With growing demands for smarter, more efficient, and innovative technologies, CPTPP supports UK businesses selling to these markets by simplifying procedures and providing greater access. This framework helps UK agri-tech companies expand their reach and maximise their potential within these markets.
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
As Chile, Peru, and Mexico continue to modernise their agricultural sectors, UK agri-tech companies are well-positioned to capitalise on new opportunities. For example:
Agriculture is the second largest exporting sector in Chile. It also ranks as the fourth largest country in Latin America in terms of investment in agri-tech and food tech start- ups, accounting for 8.5% of the regional market share[1], and there is an appetite for new products. UK exports of machines used for cleaning, sorting, or grading eggs, fruit, or other agricultural produce more than doubled between 2022 and 2024[2].
Between 2010 and 2020, Peruvian fruit export values soared from $540 million to $3.8 billion[3]. The rapid growth of fruit exports presents new opportunities for UK agri-tech manufacturers as the demand grows for technologies such as drones, sensors, and irrigation tools to help increase yields, reduce costs, and minimise environmental impact. This is particularly important for supporting top Peruvian agricultural exports such as, organic bananas, blueberries and grapes.
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
In 2023, Mexico ranked 12th in the production of food and agricultural goods, 10th in livestock production, and 17th in fisheries and aquaculture production globally[4]. Additionally, Mexico has introduced a ‘Harvesting Sovereignty’ programme which aims to boost and diversify its food systems. UK producers of animal health-related veterinary technologies that diagnose, prevent, and treat diseases, particularly in livestock, are in high demand in Mexican regions such as Jalisco and Veracruz, where production value is at its highest.
How Does the UK’s accession to CPTTP help me export to these markets
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
There are numerous provisions within CPTPP that can benefit UK agri-tech businesses, by reducing costs, streamlining trade procedures and enhancing market access to emerging markets such as Chile, Peru, and Mexico. UK businesses will not be able to trade with Mexico under CPTPP until it approves the UK’s accession but can continue to utilise the pre-existing UK-Mexico Trade Continuity Agreement.
CPTPP works in parallel with other existing bilateral agreements. To access preferential tariffs, businesses need to choose which trade agreement to trade under. Other FTA benefits will apply automatically. For information on the differences between CPTPP and the existing FTAs, please see guidance at the end of this document.
Supply Chain Diversification
Under CPTPP, the cumulation rule allows materials sourced from any CPTPP country to be considered as originating when determining the origin of a final product. This means your product will still qualify for preferential tariffs when exporting to Chile, Peru or Mexico if originating materials are sourced from any CPTPP market.
Business Travel
CPTPP provides greater access to business professionals including technicians wishing to travel to Chile, Peru and Mexico temporarily for work. This means that whether you’re conducting market research, installations and training, or closing deals, your businesses’ personnel can benefit from longer stays for a wider range of activities.
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
Digital Trade
CPTPP’s digital trade provisions help optimise procedures using modern technologies to reduce administrative costs and improve efficiency. The Agreement promotes the use of electronic signatures and authentication, as well as paperless trading, to support free-flowing trade activities using electronic rather than paper documents.
Easier Conformity Assessments
CPTPP allows UK Conformity Assessment Bodies to obtain accreditation to test against other countries’ regulations. This means your products could be tested against Chilean, Peruvian or Mexican standards in the UK, reducing the time and costs associated with sending products abroad.
Support for Sustainable Practices
CPTPP encourages high environmental standards. Its voluntary cooperation provisions are designed to foster collaboration among member countries on shared environmental challenges. This could unlock further opportunities for your business to collaborate with partners in Chile, Peru and Mexico.
For more information on the above provisions and how they might impact your business, please see the resources at the end of this document.
CASE STUDY
EMTECH HATCHERY SYSTEMS
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
In 2015, Ken Baker and Mike Osmond launched EmTech Hatchery Systems. Combining traditional concepts with innovation and new technologies, they developed advanced incubation and ventilation systems suitable for both small producers and large commercial operations in the poultry industry. Based in Sparkford, South West England, EmTech has achieved global expansion, selling products and collaborating with partners in Latin America, the USA, Australasia, Europe, and Asia.
The expansion of EmTech to Latin America began when Ken and Mike attended the IPPE show in Atlanta, OVUM Peru, and a regional poultry exhibition in Latin America. These events provided opportunities to connect with prospective customers and build strong industry relationships.
The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) will play an instrumental role in facilitating EmTech’s expansion into Peru. Promoting enhanced conditions for service delivery, CPTPP will help EmTech build deeper partnerships. Alongside CPTPP, EmTech will still be able to utilise the provisions within the UK-Andean Trade Agreement.
Improved temporary entry for business professionals will enable greater flexibility and efficiency when their engineers travel for installations, deliver customer training, and provide ongoing technical service. This mobility support is essential for maintaining high standards, especially in time- sensitive, performance-critical environments such as hatcheries.
Additionally, the benefits derived from faster customs clearance and acceptance of electronic documentation will streamline EmTech’s supply chain and reduce delivery times. This efficiency is particularly valuable for hatcheries, where minimising downtime is necessary to maintain production schedules.
Since expanding to Peru, EmTech has completed two highly successful projects: the first with San Fernando, Peru’s largest poultry producer, and the second with Avícola Yugoslavia, a broiler hatchery company. EmTech continues to work closely with their Department for Business and Trade International Trade Advisor to identify growth and expansion opportunities, as well as to support their understanding of the various international trade agreements available.
TOP TIPS FOR SUCCCESS IN CHILE PERU and MEXICO
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
- Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
- UK products are perceived to be of high quality, safe, unique, and reliable and consumers are increasingly searching for innovative and high- tech products to support agricultural efficiency and increase sustainability, providing opportunities for UK exporters.
- Business is often conducted in Spanish and personal relationships are extremely important. Face-to-face interactions also are encouraged. We recommend that you build connections in order to become a trusted business partner. This often involves providing good customer services, such as personal visits and extensive follow-up. This can be achieved either directly or by hiring a local representative or distributor
- We recommend working with an experienced distributor to help navigate regulatory, cultural, and language barriers. The Export Support Service–International Markets team (ESS-IM) can help you find one. For agriculture-focused support, the DBT LATAC Agri-Tech Team offers coordinated assistance, with dedicated teams in Chile, Peru, and Mexico. See the end of this document for ESS-IM guidance.
- Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
- Promotion is vital to succeeding in Chile, Peru, and Mexican markets; businesses must work on a promotional plan to introduce the product to the market and position it.
- Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
- UK companies should offer a strong value-added proposition showing that they are competitive in quality, prices, and payment conditions.
Examples of Opportunities Per Market
Chile: Aquaculture
Chile is renowned for its salmon farming and is the second-largest producer and exporter of salmon globally. Ensuring optimal water quality improves fish health and provides greater sustainability. UK agri-tech manufacturers of flow-through systems and recirculating aquaculture systems (RAS) can capitalise on the opportunities this growing sector presents.
Peru: Vegetable Cultivation
Peru is one of the world’s leading producers and exporters of asparagus. The UK is one of the largest importers of asparagus from Peru, taking advantage of its year-round production and quality. Soil management plays a crucial role in successful cultivation due to the precise pH requirements for healthy growth. UK producers of soil management products and other agri-technologies can take advantage of demand from growers of asparagus and other crops in the region.
Mexico: Fruticulture
Mexico is the world’s largest avocado producer and exporter. Agri-tech solutions are needed to maintain the precise conditions required for the growing of this crop. UK producers of precision agricultural tools can support efficient and sustainable practices in Mexico’s northern region and help growers meet the growing UK demand for this fruit.
UK products are perceived to be of high quality, safe, unique, and reliable and consumers are increasingly searching for innovative and high- tech products to support agricultural efficiency and increase sustainability, providing opportunities for UK exporters.
Business is often conducted in Spanish and personal relationships are extremely important. Face-to-face interactions also are encouraged. We recommend that you build connections in order to become a trusted business partner. This often involves providing good customer services, such as personal visits and extensive follow-up. This can be achieved either directly or by hiring a local representative or distributor.
We recommend working with an experienced distributor to help navigate regulatory, cultural, and language barriers. The Export Support Service–International Markets team (ESS-IM) can help you find one. For agriculture-focused support, the DBT LATAC Agri-Tech Team offers coordinated assistance, with dedicated teams in Chile, Peru, and Mexico. See the end of this document for ESS-IM guidance.
Promotion is vital to succeeding in Chile, Peru, and Mexican markets; businesses must work on a promotional plan to introduce the product to the market and position it.
UK companies should offer a strong value-added proposition showing that they are competitive in quality, prices, and payment conditions.
Useful Resources
For more information on regulations of agri-tech product you can Check how to export goods – GOV.UK . Up to date information is available for Chile, Peru and Mexico.
To read more about CPTPP, or these specific markets, please visit:
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Chile: https://www.great.gov.uk/markets/chile/trade- agreement/
Peru: https://www.great.gov.uk/markets/peru/trade- agreement/
Mexico:
CPTPP guidance will be published upon Entry into Force. The Mexico market guide will give an overview of opportunities in market and the existing Free Trade Agreement.
Export Support Service – International Markets
Part of Department for Business and Trade’s Export Support Service (ESS), International Markets (IM) provides free, in-market support for export-ready Small and Medium Enterprises looking to sell to the world. Based around the world, International Markets provides one-to-one guidance, market insight reports, and referrals to commercial service providers via the Overseas Referral Network.
Contact
International Markets support is accessed via the Export Digital Enquiry Service at https://www.great.gov.uk/support/get-in-touch/.
Exporting Agri-Tech to Chile, Peru and Mexico under CPTPP
To read more about CPTPP, or these specific markets, please visit:
Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)
Chile: https://www.great.gov.uk/markets/chile/trade- agreement/
Peru: https://www.great.gov.uk/markets/peru/trade- agreement/
Mexico:
CPTPP guidance will be published upon Entry into Force. The Mexico market guide will give an overview of opportunities in market and the existing Free Trade Agreement.
