Britain's burgeoning vocational education industry should enjoy a multi-million consultancy bonanza following the British Council's success in striking a Pounds 283,000 deal with the Mexican government to provide technical know-how.

Earlier this year, John Major signed a concordat with Mexican president Ernesto Zedillo which paved the way for the British to assist Mexico in its five-year $265 million modernisation of its technical education and training system.

The new deal - described by one observer as "the tip of a very big iceberg" - is possibly the first of many. There is speculation that the Mexican relationship alone could be worth in excess of Pounds 15 million. Major consultancy contracts already exist with Oman.

The British Council will be working on the Mexican project with the National Council for Vocational Qualifications, its Scottish equivalent, as well as Bedford College. The contract is to advise on methods for introducing competency-based standards through presentations, workshops, seminars, and training for top policy makers.

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According to Elizabeth Rylance Watson, the British Council's NVQ development officer, future contracts could benefit private education consultants, equipment suppliers, and information technology.

But the market was competitive - with challenges from the United States, Australia, New Zealand, France and Germany - and Britain could not afford to take anything for granted, she said.

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Lord Henley, higher education minister, is expected to head a trade mission to Mexico later this month to encourage further deals.