Free trade agreements of the United Kingdom explained

See also: United Kingdom–Crown Dependencies Customs Union. Following its withdrawal from the European Union on 31 January 2020, the United Kingdom began negotiations on several free trade agreements to remove or reduce tariff and non-tariff barriers to trade, both to establish new agreements and to replace previous EU trade agreements. Withdrawal ended 47 years of membership during which all its trading agreements were negotiated by the European Commission on behalf of the bloc. The UK did not actually withdraw from the European Single Market and the European Union Customs Union (and its trade agreements) until 31 December 2020.

These treaties are divided into two types of free trade agreements: continuity agreements and 'new' agreements. Continuity agreements, also named rollover agreements, make use of a mutatis mutandis concept in order to quickly replicate the existing EU agreements, only having to call out those minor areas of differentiation. Most continuity treaties were provisionally applied, or through a "bridging mechanism", thus continuity was achieved.[1] Trade agreements negotiated after Brexit are termed 'new', or enhanced agreements: these agreements have been negotiated from scratch or have been renegotiated to enhance the deal since Brexit.[2]

, the United Kingdom has 38 active free trade agreements with nations and trade blocs, covering 100 countries and territories.[3] [1] Five of these are 'new' trade agreements, such as with Australia and New Zealand.[4] The remaining 33 are continuity agreements. Furthermore, the UK has a customs union with its three Crown Dependencies.[5] The UK has further arrangements covering free trade with its 14 British Overseas Territories.[6]

The UK has also reached an agreement to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which it signed in July 2023 and is expected to join, after the 11 present members ratify, in 2024.[7]

The United Kingdom has only suspended negotiations for a trade deal on one occasion; it suspended negotiations for a post-Brexit Canada Free Trade Agreement on 25 January 2024.[8]

Competence and ratification

According to UK law the United Kingdom Parliament has the power to pass law in all policy areas.[9]

The UK's negotiating team will consult with its Strategic Trade Advisory Group throughout the negotiations.[10]

Ratification

The responsibility for concluding treaties involving the UK lies with the Secretary of State for Foreign, Commonwealth and Development Affairs. This remains the case even when the negotiation of the treaty is led by another government department.

The Foreign & Commonwealth Office's legal advisers and Treaty Section:

Unless expressly authorised to do so by the United Kingdom government, Crown Dependencies and Overseas Territories do not have the authority to contract treaties in their own right. The UK must extend the territorial scope of its ratification of treaties to include them. This may be done either at the time of ratification, or at some later date.[11]

Active agreements

The following bilateral and plurilateral agreements are currently in effect. Signature and entry into force dates are as listed by the World Trade Organization.[3]

Nation(s)No. of
nations
represented
SignedEffectiveCoverageTreatyMechanismTrade value
(2023)[12]
Ref.
Albania15 February 20213 May 2021Goods & ServicesContinuityFull ratification£362m[13] [14]
Andean Countries
Colombia
Ecuador
Peru
315 May 2019 1 January 2021 Goods & ServicesContinuityFull ratification£4,051m[15] [16]
Australia116 December 2021 31 May 2023 Goods & ServicesNewFull ratification£20,036m[17] [18]
Cameroon128 December 2020 1 January 2021 GoodsContinuityFull ratification£1,029m[19] [20]
Canada122 December 2020 1 January 2021Goods & ServicesContinuityFull ratification£26,287m[21] [22]
CARIFORUM
Antigua and Barbuda
Bahamas
Barbados
Belize
Dominica
Dominican Republic
Grenada
Guyana
Jamaica
Saint Kitts and Nevis
Saint Lucia
Saint Vincent and the Grenadines
Suriname
Trinidad and Tobago
1422 March 20191 January 2021 Goods & ServicesContinuityProvisional application£5,537m[23] [24]
Central America
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
618 July 2019 1 January 2021 Goods & ServicesContinuityFull ratification£2,478m[25] [26]
Chile130 January 2019 1 January 2021 Goods & ServicesContinuityFull ratification£1,804m[27] [28]
Eastern and Southern Africa
Madagascar
Mauritius
Seychelles
Zimbabwe
431 January 2019 1 January 2021 GoodsContinuityFull ratification£2,027m[29] [30]
Egypt15 December 2020 1 January 2021 GoodsContinuityFull ratification£4,659m[31] [32]
European Union 3130 December 2020 1 January 2021Goods & ServicesNewFull ratification£823,100m[33] [34]
Faroe Islands131 January 2019 1 January 2021 GoodsContinuityFull ratification£1,108m[35] [36]
Georgia121 October 2019 1 January 2021 Goods & ServicesContinuityFull ratification£500m[37] [38]
Ghana12 March 20215 March 2021GoodsContinuityProvisional application£1,188m[39] [40]
Iceland
Liechtenstein
Norway
38 July 20211 December 2021Goods & ServicesNewProvisional application£41,537m[41] [42]
Israel118 February 2019 1 January 2021 GoodsContinuityFull ratification£6,137m[43] [44]
Ivory Coast115 October 2020 1 January 2021 GoodsContinuityFull ratification£841m[45] [46]
Japan123 October 2020 1 January 2021 Goods & ServicesNewFull ratification£27,575m[47] [48]
Jordan15 November 2019 1 May 2021GoodsContinuityFull ratification£1,313m[49] [50]
Kenya18 December 2020 1 January 2021 GoodsContinuityFull ratification£1,427m[51] [52]
Kosovo13 December 2019 1 January 2021 GoodsContinuityFull ratification£12m[53]
Lebanon119 September 2019 1 January 2021 GoodsContinuityFull ratification£1,131m[54] [55]
Liechtenstein
Switzerland
211 February 2019 1 January 2021 GoodsContinuityFull ratification£50,817m[56] [57]
Mexico115 December 2020 1 June 2021Goods & ServicesContinuityFull ratification£6,599m[58] [59]
124 December 20201 January 2021Goods & ServicesContinuityFull ratification£1,478m[60] [61]
Morocco1 26 October 2019 1 January 2021 GoodsContinuityProvisional application£3,524m[62] [63]
New Zealand128 February 202231 May 2023Goods & ServicesNewFull ratification£3,100m[64] [65]
North Macedonia13 December 2020 1 January 2021 Goods & ServicesContinuityProvisional application£2,507m[66] [67]
Pacific States
Fiji
Papua New Guinea
Samoa
Solomon Islands
414 March 2019 1 January 2021 GoodsContinuityProvisional application£390m[68] [69]
Palestinian Authority118 February 2019 1 January 2021 GoodsContinuityFull ratification£38m[70] [71]
Serbia116 April 2021 20 May 2021Goods & ServicesContinuityFull ratification£1,018m[72] [73]
Singapore110 December 2020 1 January 2021 Goods & ServicesContinuityFull ratification£22,327m[74] [75]
South Korea122 August 2019 1 January 2021 Goods & ServicesContinuityFull ratification£16,331m[76] [77]
Southern Africa Customs Union and Mozambique
Botswana
Eswatini
Lesotho
Mozambique
Namibia
South Africa
69 October 20191 January 2021 GoodsContinuityFull ratification£11,420m[78] [79]
Tunisia14 October 2019 1 January 2021 GoodsContinuityFull ratification£693m[80] [81]
Turkey129 December 2020 1 January 2021 GoodsContinuityProvisional application£25,817m[82] [83]
Ukraine18 October 2020 1 January 2021 Goods & ServicesContinuityFull ratification£1,523m[84] [85]
Vietnam129 December 2020 1 January 2021 Goods & ServicesContinuityProvisional application£5,859m[86] [87]

Dependencies

The following agreements govern the United Kingdom's free trade with British Overseas Territories and Crown Dependencies.

Nation(s)No. of nations
represented
width=100pxSignedwidth=100pxEffectivewidth=100pxCoveragewidth=100pxTreatywidth=100pxTrade value
(2023)
CommentRef.
3130 December 20201 January 2021Goods & ServicesNew£823,100mTrade with the UK is governed within the EU–UK Trade and Cooperation Agreement, due to Akrotiri and Dhekelia remaining a part of the European Union customs union.[88] [89]
Crown Dependencies Customs Union
Guernsey
Isle of Man
Jersey
326 November 20189 December 2020Goods & ServicesNew£13,153mThe United Kingdom and the Crown Dependencies established a customs union which created a free trade area between the territories, and creates a common external tariff with other countries.[90]
Gibraltar124 October 20191 January 2021Goods & ServicesContinuity£7,236mTrade with Gibraltar is governed under the 'Financial Services and Markets Act 2000', Gibraltar and the UK amended this act in order to continue the agreement they had in the European Economic Area.[91]
Overseas Territories
Anguilla
Bermuda
British Antarctic Territory
British Indian Ocean Territory
British Virgin Islands
Cayman Islands
Falkland Islands
Montserrat
Pitcairn Islands
Saint Helena, Ascension and Tristan da Cunha
South Georgia and the South Sandwich Islands
Turks and Caicos Islands
129 November 20201 January 2021GoodsContinuity£10,591mThis arrangement acts as a continuity free trade agreement between 14 Overseas Territories and the UK.[92]

Negotiations

The United Kingdom is currently negotiating free trade agreements with the following countries and trade blocs:[4]

width=200pxNation (s)No of nations
represented
CoverageTreatyTrade value (2023)[93] Statusclass=unsortableProgressclass=unsortableRef.
Algeria1GoodsContinuity£2,303mNegotiations stagnatedA continuity trade agreement has been offered to Algeria; neither party has signed the agreement.[94]
Bosnia and Herzegovina1Goods & ServicesContinuity£255mNegotiations stagnatedA continuity trade agreement has been offered to Bosnia and Herzegovina; neither party has signed the agreement.[95]
Canada1Goods & ServicesNew£26,287mNegotiations suspendedNegotiations suspended on 25 January 2024 by the United Kingdom; the two sides have completed eight rounds of talks since 2022.[96] [97]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Australia
Brunei
Canada
Chile
Japan
Malaysia
Mexico
New Zealand
Peru
Singapore
Vietnam
11Goods & ServicesNew£121,355mAgreement signed on 16 July 2023Awaiting ratification of the UK's accession from member states.
  • Chile, Japan, New Zealand, Singapore, and the UK have ratified the UK's accession.
  • At least two more CPTPP states need to ratify the UK's accession.
[98] [99]
Greenland1GoodsNew£12mNegotiations stagnatedNegotiations opened on 27 January 2022.[100] [101]
Gulf Cooperation Council
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
United Arab Emirates
6Goods & ServicesNew£57,433mNegotiations ongoing Sixth round of negotiations concluded on 9 February 2024.[102] [103]
India1Goods & ServicesNew£38,978mNegotiations ongoingFourteenth round of negotiations concluded on 15 March 2024.[104] [105]
Israel1Goods & ServicesNew£6,137mNegotiations ongoingFifth round of negotiations concluded on 17 April 2024.[106] [107]
Maldives1GoodsNew£492mDiscussions ongoingTrade consultation closed on 2 August 2023.[108] [109]
Mexico1Goods & ServicesNew£6,599mNegotiations ongoingThird round of negotiations concluded on 19 May 2023.[110] [111]
Montenegro1Goods & ServicesContinuity£156mNegotiations stagnatedA continuity trade agreement has been offered to Montenegro; neither party has signed the agreement.
South Korea1Goods & ServicesNew£18,349mNegotiations ongoingSecond round of negotiations concluded on 22 March 2024.[112] [113]
Switzerland1Goods & ServicesNew£50,817mNegotiations ongoingFourth round of negotiations concluded on 8 March 2024.[114] [115]
Thailand1Goods & ServicesNew£6,026mDiscussions ongoingFree Trade Agreement initiative launched on 21 March 2024.[116] [117]
Turkey1Goods & ServicesNew£25,817mNegotiations ongoingNegotiations opened on 14 March 2024.[118] [119]
Ukraine1Goods & ServicesNew£1,523mAgreement signed on 20 March 2023.The Ukraine–United Kingdom Digital Trade Agreement will expand upon the existing FTA when it enters into force on the 1 September 2024.[120] [121]
United States1Goods & ServicesNew£310,840mNegotiations stagnatedFifth round of negotiations concluded on 30 October 2020.[122] [123]

Potential enlargement

The following countries can accede to an existing plurilateral Economic Partnership Agreement with the United Kingdom.

Nation(s) Trade agreement
being joined
Status Ref.
HaitiCARIFORUMHaiti will be covered by the CARIFORUM–UK Economic Partnership Agreement if they sign it and bring it into effect.[124]
Comoros
Zambia
Eastern and Southern AfricaOut of the remaining COMESA members, Comoros, and Zambia have agreements in place allowing them to join the ESA–UK Economic Partnership Agreement:
  • Comoros signed the agreement on 12 April 2022 and will be covered by the EPA when they bring it into effect.
  • Zambia will be covered by the EPA if they sign it and bring it into effect.
[125] [126]
East African Community
Burundi
DR Congo
Rwanda
Somalia
South Sudan
Tanzania
Uganda
Article 143 of the UK–Kenya Economic Partnership Agreement enables any other East African Community member to make an accession request to the UK–Kenya EPA Council.[127] [128]
Cook Islands
Kiribati
Marshall Islands
Micronesia
Nauru
Niue
Palau
Tonga
Tuvalu
Vanuatu
Pacific StatesThe Pacific States–UK Economic Partnership Agreement states that 10 other Pacific nations are currently eligible to apply for accession.
  • Tonga has shown interest in acceding to the EPA.
[129]

Obsolete agreements

The following free trade agreements were previously active, however they have since been superseded or terminated. Signature, entry into force and obselete dates are as listed by the World Trade Organization.[3]

Nation(s)No of nations
represented
width=100Signedwidth=100Effectivewidth=100ObsoleteCoverageclass=unsortableNoteSuperseded by class=unsortableRef.
119 December 19651 July 19661 January 1973GoodsThe Ireland–United Kingdom Free Trade Area was agreed to after both nations' bids to join the European Economic Community were rejected. This agreement was superseded upon both parties' accession to the EEC. European Economic Community[130] [131]
118 October 20191 January 202128 June 2022Goods & ServicesThe Colombia–UK Trade Continuity Agreement was provisionally applied until Colombia could ratify the Andean–UK Trade Continuity Agreement, which superseded this agreement.Andean Countries
Colombia
Ecuador
Peru
[132]

28 December 20201 January 20211 September 2022GoodsIceland–Norway–UK Trade Continuity Agreement was superseded by an updated FTA with Liechtenstein, which expanded the coverage to include services.

[133] [134] [135]

Former trade bloc memberships

The United Kingdom was previously a member of the following trade blocs, which include multilateral free trade with fellow members.

Nation(s)No. of nations
represented
width=90Signedwidth=90Effectivewidth=100Obsoletewidth=120Coverageclass=unsortableNoteSuperseded by class=unsortableRef.
European Free Trade Association






74 January 19603 May 196031 December 1972Goods & ServicesThe UK was a founding member of the European Free Trade Association, but left the organisation to join the European Economic Community, along with Denmark. European Economic Community[136] [137]
European Economic Community










West Germany/Germany
1122 January 19721 January 19731 November 1993Goods & ServicesThe UK joined the European Economic Community, along with Denmark and Ireland. The EEC was incorporated into the European Union. European Union[138] [139] [140]
European Union277 February 19921 November 19931 January 2021Goods & ServicesFollowing the result of the Brexit referendum, the UK invoked Article 50 in March 2017. The UK officially withdrew from the EU on the 1 January 2021. Trade and Cooperation Agreement[141] [142]

Obsolete EU agreements

The following agreements are European Union free trade agreements, of which the United Kingdom was a party until Brexit; however continuity agreements were not reached to replace them.

Nation (s)No of nations
represented
SignedEffectiveObsoleteCoverageclass=unsortableNoteclass=unsortableRef.
122 April 20021 September 20051 January 2021GoodsThe UK has no free trade agreement with Algeria.[143]
116 June 20081 June 20151 January 2021Goods & ServicesThe UK has no free trade agreement with Bosnia and Herzegovina.[144]
EU Overseas Countries and Territories
Aruba
Bonaire
Curaçao
French Polynesia
French Southern and Antarctic Lands
Greenland
New Caledonia
Saba
Saint Barthélemy
Saint Pierre and Miquelon
Sint Eustatius
Sint Maarten
Wallis and Futuna
1327 November 20012 December 20011 January 2021GoodsThe UK has no free trade agreement with any of the EU Overseas Countries and Territories.
  • Greenland and the UK have opened negotiations for a free trade agreement.
[145] [146]
115 October 20071 May 20101 January 2021Goods & ServicesThe UK has no free trade agreement with Montenegro.[147]

Largest trading partners

Exports! colspan="4"
Imports
RankTrade Partner £millions% of TotalRankTrade Partner£millions% of Total
European Union153 95147.8% European Union223 39346.8%
1. United States47 09814.6% 1. China63 55713.3%
2. Germany (EU member)29 5959.2%2. Germany (EU member)53 75911.2%
3. Netherlands (EU member)27 0858.4%3. United States39 3798.2%
4. Ireland (EU member)21 8346.8%4. Netherlands (EU member)31 7866.7%
5. France (EU member)19 4416.0% 5. Norway (EFTA)27 1125.7%
6. China18 7935.8%6. Belgium (EU member)23 3314.9%
7. Belgium (EU member) 14 9394.6%7. France (EU member)23 1284.8%
8. Switzerland (EFTA)10 3093.2%8. Italy (EU member)17 6043.7%
9. Italy (EU member)9 1122.8%9. Spain (EU member)14 4723.0%
10. Spain (EU member)7 8782.4%10. Ireland (EU member)13 8612.9 %
EU300.343.0%EU372.251.4%
Non EU398.357.0%Non EU352.348.6%
World698.6100%World724.5100%
Historically, WTO imports and exports are based on the rule of origin, while EU imports/exports are based on single market statistics.

The figures above are for 2020 & 2021[148] [149]

See also

References

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