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:
- must be given the opportunity to comment on the drafts of all treaties under negotiation
- will advise on the form and substance of the treaty, though not substance which is technical and of which the other government department is the expert
- will advise on related matters such as the production of Full Powers and Instruments of Ratification
- will produce original signature copies of treaties and advise on the treaty signing ceremony
- will arrange for the treaty to be published and laid before Parliament
- is responsible for the registration of these treaties with the United Nations, allowing their subsequent publication in the United Nations Treaty Series
- will transfer of the treaties to the National Archives for preservation
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 | Signed | Effective | Coverage | Treaty | Mechanism | Trade value (2023)[12] | Ref. |
---|
Albania | 1 | 5 February 2021 | 3 May 2021 | Goods & Services | Continuity | Full ratification | £362m | [13] [14] |
Andean Countries Colombia Ecuador Peru | 3 | 15 May 2019 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £4,051m | [15] [16] |
Australia | 1 | 16 December 2021 | 31 May 2023 | Goods & Services | New | Full ratification | £20,036m | [17] [18] |
Cameroon | 1 | 28 December 2020 | 1 January 2021 | Goods | Continuity | Full ratification | £1,029m | [19] [20] |
Canada | 1 | 22 December 2020 | 1 January 2021 | Goods & Services | Continuity | Full 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 | 14 | 22 March 2019 | 1 January 2021 | Goods & Services | Continuity | Provisional application | £5,537m | [23] [24] |
Central America Costa Rica El Salvador Guatemala Honduras Nicaragua Panama | 6 | 18 July 2019 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £2,478m | [25] [26] |
Chile | 1 | 30 January 2019 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £1,804m | [27] [28] |
Eastern and Southern Africa Madagascar Mauritius Seychelles Zimbabwe | 4 | 31 January 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £2,027m | [29] [30] |
Egypt | 1 | 5 December 2020 | 1 January 2021 | Goods | Continuity | Full ratification | £4,659m | [31] [32] |
European Union | 31 | 30 December 2020 | 1 January 2021 | Goods & Services | New | Full ratification | £823,100m | [33] [34] |
Faroe Islands | 1 | 31 January 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £1,108m | [35] [36] |
Georgia | 1 | 21 October 2019 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £500m | [37] [38] |
Ghana | 1 | 2 March 2021 | 5 March 2021 | Goods | Continuity | Provisional application | £1,188m | [39] [40] |
Iceland Liechtenstein Norway | 3 | 8 July 2021 | 1 December 2021 | Goods & Services | New | Provisional application | £41,537m | [41] [42] |
Israel | 1 | 18 February 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £6,137m | [43] [44] |
Ivory Coast | 1 | 15 October 2020 | 1 January 2021 | Goods | Continuity | Full ratification | £841m | [45] [46] |
Japan | 1 | 23 October 2020 | 1 January 2021 | Goods & Services | New | Full ratification | £27,575m | [47] [48] |
Jordan | 1 | 5 November 2019 | 1 May 2021 | Goods | Continuity | Full ratification | £1,313m | [49] [50] |
Kenya | 1 | 8 December 2020 | 1 January 2021 | Goods | Continuity | Full ratification | £1,427m | [51] [52] |
Kosovo | 1 | 3 December 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £12m | [53] |
Lebanon | 1 | 19 September 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £1,131m | [54] [55] |
Liechtenstein Switzerland | 2 | 11 February 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £50,817m | [56] [57] |
Mexico | 1 | 15 December 2020 | 1 June 2021 | Goods & Services | Continuity | Full ratification | £6,599m | [58] [59] |
| 1 | 24 December 2020 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £1,478m | [60] [61] |
Morocco | 1 | 26 October 2019 | 1 January 2021 | Goods | Continuity | Provisional application | £3,524m | [62] [63] |
New Zealand | 1 | 28 February 2022 | 31 May 2023 | Goods & Services | New | Full ratification | £3,100m | [64] [65] |
North Macedonia | 1 | 3 December 2020 | 1 January 2021 | Goods & Services | Continuity | Provisional application | £2,507m | [66] [67] |
Pacific States Fiji Papua New Guinea Samoa Solomon Islands | 4 | 14 March 2019 | 1 January 2021 | Goods | Continuity | Provisional application | £390m | [68] [69] |
Palestinian Authority | 1 | 18 February 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £38m | [70] [71] |
Serbia | 1 | 16 April 2021 | 20 May 2021 | Goods & Services | Continuity | Full ratification | £1,018m | [72] [73] |
Singapore | 1 | 10 December 2020 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £22,327m | [74] [75] |
South Korea | 1 | 22 August 2019 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £16,331m | [76] [77] |
Southern Africa Customs Union and Mozambique Botswana Eswatini Lesotho Mozambique Namibia South Africa | 6 | 9 October 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £11,420m | [78] [79] |
Tunisia | 1 | 4 October 2019 | 1 January 2021 | Goods | Continuity | Full ratification | £693m | [80] [81] |
Turkey | 1 | 29 December 2020 | 1 January 2021 | Goods | Continuity | Provisional application | £25,817m | [82] [83] |
Ukraine | 1 | 8 October 2020 | 1 January 2021 | Goods & Services | Continuity | Full ratification | £1,523m | [84] [85] |
Vietnam | 1 | 29 December 2020 | 1 January 2021 | Goods & Services | Continuity | Provisional application | £5,859m | [86] [87] |
|
Dependencies
The following agreements govern the United Kingdom's free trade with British Overseas Territories and Crown Dependencies.
Negotiations
The United Kingdom is currently negotiating free trade agreements with the following countries and trade blocs:[4]
width=200px | Nation (s) | No of nations represented | Coverage | Treaty | Trade value (2023)[93] | Status | class=unsortable | Progress | class=unsortable | Ref. |
---|
Algeria | 1 | Goods | Continuity | £2,303m | Negotiations stagnated | A continuity trade agreement has been offered to Algeria; neither party has signed the agreement. | [94] |
Bosnia and Herzegovina | 1 | Goods & Services | Continuity | £255m | Negotiations stagnated | A continuity trade agreement has been offered to Bosnia and Herzegovina; neither party has signed the agreement. | [95] |
Canada | 1 | Goods & Services | New | £26,287m | Negotiations suspended | Negotiations 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 | 11 | Goods & Services | New | £121,355m | Agreement signed on 16 July 2023 | Awaiting 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] |
Greenland | 1 | Goods | New | £12m | Negotiations stagnated | Negotiations opened on 27 January 2022. | [100] [101] |
Gulf Cooperation Council Bahrain Kuwait Oman Qatar Saudi Arabia United Arab Emirates | 6 | Goods & Services | New | £57,433m | Negotiations ongoing | Sixth round of negotiations concluded on 9 February 2024. | [102] [103] |
India | 1 | Goods & Services | New | £38,978m | Negotiations ongoing | Fourteenth round of negotiations concluded on 15 March 2024. | [104] [105] |
Israel | 1 | Goods & Services | New | £6,137m | Negotiations ongoing | Fifth round of negotiations concluded on 17 April 2024. | [106] [107] |
Maldives | 1 | Goods | New | £492m | Discussions ongoing | Trade consultation closed on 2 August 2023. | [108] [109] |
Mexico | 1 | Goods & Services | New | £6,599m | Negotiations ongoing | Third round of negotiations concluded on 19 May 2023. | [110] [111] |
Montenegro | 1 | Goods & Services | Continuity | £156m | Negotiations stagnated | A continuity trade agreement has been offered to Montenegro; neither party has signed the agreement. | |
South Korea | 1 | Goods & Services | New | £18,349m | Negotiations ongoing | Second round of negotiations concluded on 22 March 2024. | [112] [113] |
Switzerland | 1 | Goods & Services | New | £50,817m | Negotiations ongoing | Fourth round of negotiations concluded on 8 March 2024. | [114] [115] |
Thailand | 1 | Goods & Services | New | £6,026m | Discussions ongoing | Free Trade Agreement initiative launched on 21 March 2024. | [116] [117] |
Turkey | 1 | Goods & Services | New | £25,817m | Negotiations ongoing | Negotiations opened on 14 March 2024. | [118] [119] |
Ukraine | 1 | Goods & Services | New | £1,523m | Agreement 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 States | 1 | Goods & Services | New | £310,840m | Negotiations stagnated | Fifth 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.
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=100 | Signed | width=100 | Effective | width=100 | Obsolete | Coverage | class=unsortable | Note | Superseded by | class=unsortable | Ref. |
---|
| 1 | 19 December 1965 | 1 July 1966 | 1 January 1973 | Goods | The 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] |
| 1 | 18 October 2019 | 1 January 2021 | 28 June 2022 | Goods & Services | The 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] |
| 2 | 8 December 2020 | 1 January 2021 | 1 September 2022 | Goods | Iceland–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.
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.
Largest trading partners
Exports! colspan="4" Imports |
Rank | Trade Partner | £millions | % of Total | Rank | Trade Partner | £millions | % of Total |
---|
| European Union | 153 951 | 47.8% | | European Union | 223 393 | 46.8% |
1. | United States | 47 098 | 14.6% | 1. | China | 63 557 | 13.3% |
2. | Germany (EU member) | 29 595 | 9.2% | 2. | Germany (EU member) | 53 759 | 11.2% |
3. | Netherlands (EU member) | 27 085 | 8.4% | 3. | United States | 39 379 | 8.2% |
4. | Ireland (EU member) | 21 834 | 6.8% | 4. | Netherlands (EU member) | 31 786 | 6.7% |
5. | France (EU member) | 19 441 | 6.0% | 5. | Norway (EFTA) | 27 112 | 5.7% |
6. | China | 18 793 | 5.8% | 6. | Belgium (EU member) | 23 331 | 4.9% |
7. | Belgium (EU member) | 14 939 | 4.6% | 7. | France (EU member) | 23 128 | 4.8% |
8. | Switzerland (EFTA) | 10 309 | 3.2% | 8. | Italy (EU member) | 17 604 | 3.7% |
9. | Italy (EU member) | 9 112 | 2.8% | 9. | Spain (EU member) | 14 472 | 3.0% |
10. | Spain (EU member) | 7 878 | 2.4% | 10. | Ireland (EU member) | 13 861 | 2.9 % |
|
| EU | 300.3 | 43.0% | | EU | 372.2 | 51.4% |
| Non EU | 398.3 | 57.0% | | Non EU | 352.3 | 48.6% |
|
| World | 698.6 | 100% | | World | 724.5 | 100% | |
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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