Free trade agreements of the United Kingdom

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.

UK trade agreements
  United Kingdom, overseas territories and crown dependencies
  Agreements currently in effect
  Agreement in principle or being negotiated

These treaties are divided into two types of free trade agreements: continuity agreements and 'new' agreements. Continuity agreements, also named rollover agreements, 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]

As of May 2023, the United Kingdom has 36 active free trade agreements with nations and trade blocs, covering 98 countries and territories.[3][4] Three of these are 'new' trade agreements: the European Union, Japan, and an enhanced agreement with Iceland, Liechtenstein and Norway. The remaining 33 are continuity agreements.[5][6]

In addition, two further new agreements, with Australia and New Zealand, are expected to come into force on 31 May 2023.[7] The UK has also reached an agreement to accede to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, which it is expected to join in July 2023.[8][9]

The former Johnson ministry describes itself as a proponent of free trade.[10][11]

The UK's negotiating team will consult with its Strategic Trade Advisory Group throughout the negotiations.[12]

Competence and ratification process

According to UK law the United Kingdom Parliament has the power to pass law in all policy areas.[13]

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.[14]

The FCO'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 UN, allowing their subsequent publication in the United Nations Treaty Series

  • will transfer of the treaties to the National Archives for preservation[14]

Unless expressly authorised to do so by HMG in the UK, Crown Dependencies and Overseas Territories do not have the authority to become a party to treaties in their own right. The UK must extend the territorial scope of its ratification of treaties to include them. This is normally done either at the time of ratification, or at some later date.[14]

Active agreements

The following agreements are currently in effect, signature and entry into force dates are as listed by the World Trade Organisation.[15]

Nation (s) No of nations
represented
Signed Effective Entry into effect mechanism Treaty Trade value (2021) Ref.
Albania 1 5 February 2021 3 May 2021 Full ratification Continuity £200m [16][1]
Andean Countries
Colombia[lower-alpha 1]
Ecuador
Peru
3 15 May 2019 1 January 2021 Full ratification Continuity £2.5bn [17][18]
Cameroon 1 28 December 2020 1 January 2021 Full ratification Continuity £364m [19][1]
Canada 1 22 December 2020 1 January 2021 Full ratification Continuity £21.4bn [20][21]
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[lower-alpha 2]
Trinidad and Tobago
14 22 March 2019 1 January 2021 Provisional application Continuity £3.3bn [22][23][24][1]
Central America
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
6 18 July 2019 1 January 2021 Full Ratification Continuity £1.2bn [25][26]
Chile 1 30 January 2019 1 January 2021 Full ratification Continuity £1.5bn [27]
Côte d'Ivoire 1 15 October 2020 1 January 2021 Full ratification Continuity £644m [28]
Eastern and Southern Africa
Mauritius
Seychelles
Zimbabwe
3 31 January 2019 1 January 2021 Full ratification Continuity £973m [29]
Egypt 1 5 December 2020 1 January 2021 Full ratification Continuity £3.4bn

($4.79bn)

[30][1]
European Union 31 30 December 2020 1 January 2021 Full ratification New £660bn

($902.42bn)

[31][32][4]
Faroe Islands 1 31 January 2019 1 January 2021 Full ratification Continuity £598m [33]
Georgia 1 21 October 2019 1 January 2021 Full ratification Continuity £175m [34]
Ghana 1 2 March 2021 5 March 2021 Provisional application Continuity £1.2bn ($1.64bn) [35]
Iceland
Liechtenstein[lower-alpha 7]
Norway
3 8 July 2021 1 December 2021 Provisional application New £36.5bn [36]
Israel 1 18 February 2019 1 January 2021 Full ratification Continuity £5bn [37]
Japan 1 23 October 2020 1 January 2021 Full ratification New £24.8bn [38]
Jordan 1 5 November 2019 1 May 2021 Full ratification Continuity £570m [39]
Kenya 1 8 December 2020 1 January 2021 Full ratification Continuity £1.1bn [40]
Kosovo 1 3 December 2019 1 January 2021 Full ratification Continuity £13m [41]
Lebanon 1 19 September 2019 1 January 2021 Full ratification Continuity £471m [42]
Liechtenstein[lower-alpha 8]
Switzerland
1 11 February 2019 1 January 2021 Full ratification Continuity £39.7bn [43][44]
Mexico 1 15 December 2020 1 June 2021 Full ratification Continuity £3.8bn [45][1]
Moldova 1 24 December 2020 1 January 2021 Provisional application Continuity £1.9bn [46]
Morocco 1 26 October 2019 1 January 2021 Provisional application Continuity £1.9bn [47]
North Macedonia 1 3 December 2020 1 January 2021 Provisional application Continuity £2bn [48][1]
Pacific States
Fiji
Papua New Guinea
Samoa[lower-alpha 9]
Solomon Islands[lower-alpha 10]
4 14 March 2019 1 January 2021 Provisional application Continuity £280m [49][50][51]

[52][53]

Palestinian Authority 1 18 February 2019 1 January 2021 Full ratification Continuity £28m [54]
Serbia 1 16 April 2021 20 May 2021 Full ratification Continuity £667m [55]
Singapore 1 10 December 2020 1 January 2021 Full ratification Continuity £17.3bn [56]
South Korea 1 22 August 2019 1 January 2021 Full ratification Continuity £14bn [57]
SACUM
Botswana
Eswatini
Lesotho
Mozambique
Namibia
South Africa
6 9 October 2019 1 January 2021 Full ratification Continuity £11.6bn [58]
Tunisia 1 4 October 2019 1 January 2021 Full ratification Continuity £491m [59]
Turkey 1 29 December 2020 1 January 2021 Provisional application Continuity £18bn [60]
Ukraine 1 8 October 2020 1 January 2021 Full ratification Continuity £2.1bn [61]
Vietnam 1 29 December 2020 1 January 2021 Provisional application Continuity £5.4bn [62]

British Territories

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

Nation (s) No of nations
represented
Signed Effective Comment Ref.
 Akrotiri and Dhekelia 31[lower-alpha 11] 30 December 2020 1 May 2021 Trade with the UK is governed within the EU–UK Trade and Cooperation Agreement, due to Akrotiri and Dhekelia remaining apart of the European Union customs union. [63][64]
Anguilla 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Anguilla and the UK. [65][66]
Bermuda 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Bermuda and the UK. [67][68]
British Antarctic Territory 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between British Antarctic Territory and the UK. [69][70]
British Indian Ocean Territory 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between British Indian Ocean Territory and the UK. [71][72]
British Virgin Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between British Virgin Islands and the UK. [73][74]
Cayman Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Cayman Islands and the UK. [75][76]
Crown Dependencies Customs Union
Guernsey
Isle of Man
Jersey
3 26 November 2018 9 December 2020 The 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. [77][78]
Falkland Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Falkland Islands and the UK. [79][80]
Gibraltar 1 24 October 2019 1 January 2021 Trade 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. [81][82]
Montserrat 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Montserrat and the UK. [83][84]
Pitcairn Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Pitcairn Islands and the UK. [85][86]
 Saint Helena, Ascension and Tristan da Cunha
Ascension Island
Saint Helena
Tristan da Cunha
3 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Saint Helena, Ascension, and Tristan da Cunha and the UK. [87][88]
South Georgia and the South Sandwich Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between South Georgia and the South Sandwich Islands and the UK. [89][90]
Turks and Caicos Islands 1 9 November 2020 1 January 2021 This arrangement acts as a continuity free trade agreement between Turks and Caicos Islands and the UK. [91][92]

Negotiations

The following negotiations focusses on ‘new’ trade agreements with countries and trade blocs that have no current free trade agreement with the United Kingdom.

Nation (s) No of nations repeesented Status Comment Ref.
Australia 1 Agreement signed on 17 December 2021 Expected to come into force on 31 May 2023. [93][94][95]
CPTPP
Australia
Brunei
Canada
Chile
Japan
Malaysia
Mexico
New Zealand
Peru
Singapore
Vietnam
11 Negotiations agreed and concluded on 31 March 2023 Awaiting ratification of the UK's accession from member states. [96][9]
Greenland 1 Negotiations ongoing Negotiations started in January 2022. [97][98]
Gulf Cooperation Council
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
United Arab Emirates
6 Negotiations ongoing Third round of negotiations took place in March 2023. [99][100]
India 1 Negotiations ongoing Ninth round of negotiations took place in April 2023. [101][102]
New Zealand 1 Agreement signed on 28 February 2022 Expected to come into force on 31 May 2023. [103][104]
United States 1 Negotiations stagnated Fifth round of negotiations took place in October 2020. [105][106]

Re-negotiations

The following negotiations focusses on ‘new’ trade agreements with countries which rolled over previous EU agreements.

Nation (s) No of nations repeesented Status Comment Ref.
Canada 1 Negotiations ongoing Negotiations started in March 2022. [107][108]
Israel 1 Negotiations ongoing Negotiations started on 20 July 2022. [109][110]
Mexico 1 Negotiations ongoing Negotiations started in May 2022. [111][112]
South Korea 1 Discussions ongoing The trade consultation closed on 2 February 2023. [113][114]
Switzerland 1 Negotiations ongoing Negotiations started on 15 May 2023. [115][116]

Potential enlargement

The following countries can acceed to an existing trade agreement with the United Kingdom.

Nation (s) Trade agreement being joined Status Ref.
Haiti CARIFORUM Haiti will be covered by the EPA if they sign it and bring it into effect. [117]
Comoros
Madagascar
Zambia
ESA Madagascar and Comoros have signed the agreement 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.
[118][119]
East African Community
Burundi
DR Congo
Rwanda
South Sudan
Tanzania
Uganda
Kenya Article 143 of the UK-Kenya Partnership Agreement enables any other EAC member to make an accession request to the UK-Kenya EPA Council. [120][121]
Cook Islands
Kiribati
Marshall Islands
Micronesia
Nauru
Niue
Palau
Tonga
Tuvalu
Vanuatu
Pacific States The Pacific States EPA allows other Pacific countries to apply for accession. Tonga has shown interest in acceding to the existing EPA. [122]

Obsolete agreements

The following free trade agreements were previously active, however they have since been superseded.

Nation (s) No of nations represented Signed Effective Obsolete Note Superseded by Ref.
 Ireland 1 19 December 1965 1 July 1966 1 January 1973 After both nations bids to join the EEC were rejected, Ireland and the UK agreed to the Ireland-UK Free Trade Area. This was superseded upon both parties' accession to the EEC. European Economic Community [123][124]
 Colombia 1 18 October 2019 1 January 2021 28 June 2021 Colombia-UK Continuity FTA was provisionally applied until Colombia could ratify the Andean-UK Continuity FTA, which superseded this agreement. Andean Countries
Colombia
Ecuador
Peru
[125][126]
 Iceland
 Norway
2 8 December 2020 1 January 2021 8 July 2021 Iceland-Norway Continuity FTA was superseded by the Enhanced FTA with Liechtenstein.  Iceland
 Liechtenstein
 Norway
[127][128]

Former trade bloc memberships

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

Nation (s) No of nations represented Signed Effective Obsolete Note Superseded by Ref.
European Free Trade Association
 Austria
 Denmark
 Iceland[lower-alpha 12]
 Norway
 Portugal
 Sweden
 Switzerland
7 4 January 1960 3 May 1960 31 December 1972 The UK was a founding member of the European Free Trade Association, however left the organisation in order to join the European Economic Community, along with Denmark. European Economic Community [129]
European Economic Community
 Belgium
 Denmark
 France
 Greece[lower-alpha 13]
 Ireland
 Italy
 Luxembourg
 Netherlands
 Portugal[lower-alpha 14]
 Spain[lower-alpha 15]
West Germany/Germany[lower-alpha 16]
11 22 January 1972 1 January 1973 1 November 1993 The UK joined the European Economic Community, along with Denmark and Ireland. The EEC was incorporated into the European Union. European Union [130]
European Union[lower-alpha 17] 32 7 February 1992 1 November 1993 1 January 2020 Following the reult of the Brexit referendum, the UK invoked Article 50 in March 2017. The UK and Gibraltar withdrew from the EU on the 1 January 2021. [131][132]

Obsolete EU agreements

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

Nation (s) No of nations represented Signed Effective Obsolete Note Ref.
 Algeria 1 22 April 2002 1 September 2005 1 January 2021 The UK has no free trade agreement with Algeria. [133]
 Bosnia and Herzegovina 1 16 June 2008 1 June 2015 1 January 2021 The UK has no free trade agreement with Bosnia and Herzegovina. [134]
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
13 27 November 2001 2 December 2001 1 January 2021 The 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. [135][136][137]
 Montenegro 1 15 October 2007 1 May 2010 1 January 2021 The UK has no free trade agreement with Montenegro. [138]

UK top trading partners

Export and import markets for goods in 2020 & 2021, seasonally adjusted
Exports Imports
Rank Trade Partner Million Pounds % of Total Rank Trade Partner Million
Pounds
% of Total
1. United States[lower-alpha 43] 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 2021 & 2022 [139][140]

Neglecting human rights

The UK long maintained the idea of incorporating a values-driven trade policy. In October 2021, the Secretary of State for International Trade, Anne-Marie Trevelyan also said trade "will not come at the expense of human rights. She had stated that discussions on free trade agreements will bring an opportunity to raise such issues. However, in 2022, a leaked letter to MPs from Trevelyan revealed that the post-Brexit trade deals will not be used to enforce human rights. Trevelyan wrote, "Free trade agreements are not generally the most effective or targeted tool to advance human rights issues." The change in UK's policy came as the country was looking to seal a deal with Middle Eastern countries with poor human rights records, including Saudi Arabia, the United Arab Emirates and Bahrain. The move was condemned by human rights campaigners, who said, "Gulf dictators will be confidently reassured that when it comes to business with the UK, human rights will be left completely off the table." Amnesty International UK's economic affairs director, Peter Frankental also said that Britain was "sending a terrible message to other countries".[141]

See also

Notes

  1. Joined 28 June 2022
  2. Joined 5 March 2021
  3. As an integral part of the EU Customs Union, Akrotiri and Dhekelia-UK trade is covered by this agreement.
  4. Under the UK-EU Trade and Cooperation Agreement, the UK and the EU have agreed that Andorra be treated as a member of the EUCU. Therefore, Andorra-UK trade is covered by this agreement.[4]
  5. As an integral part of the EU Customs Union, Monaco-UK trade is covered by this agreement.
  6. Under the UK-EU Trade and Cooperation Agreement, the UK and the EU have agreed that Andorra be treated as a member of the EUCU. Therefore, San Marino-UK trade is covered by this agreement.[4]
  7. Due to the Swiss-Liechtenstein customs union, goods from Liechtenstein are governed in the Switzerland-UK FTA.
  8. This treaty only governs Liechtenstein's goods due to the Swiss-Liechtenstein customs union. Liechtenstein-UK trade is governed by the Iceland-Liechtenstein-Norway-UK FTA.
  9. Joined 11 January 2021
  10. Joined 5 January 2021
  11. See European Union-UK FTA.
  12. Joined 1 January 1970
  13. Joined 1 January 1981
  14. Joined 1 January 1986
  15. Joined 1 January 1986
  16. German reunification took place in 1990
  17. Through the European Union customs union and the European single market.
  18. Through the European Union customs union, joined 1 May 2004.
  19. Through the European Union customs union.
  20. Joined 1 January 1995
  21. Joined 1 January 2007
  22. Joined 1 July 2013
  23. Joined 1 May 2004
  24. Joined 1 May 2004
  25. Joined 1 May 2004
  26. Joined 1 January 1995
  27. Through UK membership
  28. Joined 1 May 2004
  29. Through the European single market.
  30. Joined 1 May 2004
  31. Through the European single market.
  32. Joined 1 May 2004
  33. Joined 1 May 2004
  34. Through the European Union customs union.
  35. Through the European single market.
  36. Joined 1 May 2004
  37. Joined 1 January 2007
  38. Through the European Union customs union.
  39. Joined 1 May 2004
  40. Joined 1 May 2004
  41. Joined 1 January 1995
  42. Through the European single market.
  43. including Puerto Rico

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