Trade agreements of the United Kingdom
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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 as a whole. 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.
As of July 2021, the United Kingdom has concluded three new trade agreements: with Japan; with its biggest trading partner, the EU; and with Australia. In addition, it has agreed 35 'trade continuity agreements' (that replicate their pre-existing agreements with the EU) covering 67 nations by June 2021. In addition, it has begun other negotiations, notably to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership. The current Johnson ministry describes itself as a proponent of free trade.[1][2]
The UK's negotiating team will consult with its Strategic Trade Advisory Group throughout the negotiations.[3]
Competence and ratification process[]
According to UK law the United Kingdom Parliament has the power to pass law in all policy areas.[4]
Competence within the United Kingdom[]
The United Kingdom Government has reserved powers over matters regarding international trade and agreements as well as the right and power to legislate over any matter due to parliamentary sovereignty. However United Kingdom Government will normally seek a consent motion from the Devolved Parliament (s) when areas within Agreement (s) collide with matters of devolved competence regardless of their ability to legislate.
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.[5]
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[5]
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.[5]
Obsolete agreements[]
No | Nation (s) | Notes | Superseded by |
---|---|---|---|
1. | Norway & Iceland | During the Brexit negotiations between the EU and the UK, there was some concern that agreement on terms for withdrawal would not be reached, and that the UK would leave the EU precipitously without any agreement (the original no-deal Brexit scenario). With this outcome a possibility, the UK secured a goods-only trade agreement with Norway and Iceland,[citation needed] that would only be valid in the outcome of a No Deal exit from the EU. As the UK did agree terms and go on to ratify the Brexit withdrawal agreement in November 2019 and leaving the EU at the end of January 2020, this agreement became obsolete and so will not come into effect. | Norway & Iceland agreement
(see signed agreements) |
Signed agreements[]
As of 29 December 2020, the UK had 38 trade agreements[6] with 96 countries, some through the use of a mutatis mutandis concept, in order to quickly replicate the existing agreements between the EU and these countries, only having to call out those minor areas of differentiation (this allowed some agreements to be reduced to around 40 pages from the original around 1400). Among them are significant economies — by nominal GDP — such as the European Union, South Korea, Switzerland, Israel and South Africa.
Most of these treaties have not formally entered into force on 1 January 2021.[7] However, for many these treaties will be provisionally applied, or through a "bridging mechanism" (exchange of diplomatic notes verbale etc) continuity is achieved.[7]
No | Nation (s) | No of nations represented |
Signed | Effective | Accession of new countries | Treaty number | Citation | Trade value (2019) |
---|---|---|---|---|---|---|---|---|
1. | Australia | 1 | 15 June 2021 | Agreed in principle | [8] | £13.9bn
($19.30bn) | ||
2. | Albania | 1 | 5 February 2021[9] | 14 May 2021[7] | Albania 1 (2021)[citation needed] | £158m ($216.8m) | ||
3. | Andean Community
Colombia (bridging mechanism), Ecuador and Peru (Full ratification) |
3 | 15 May 2019 | 1 January 2021 | Misc 22 (2019) | [10][11] | £2.9bn
($3.97bn) | |
4. | Cameroon | 1 | 30 December 2020 | 19 July 2021 (full ratification)[7] | Cameroon No.1 (2020) | [12] | £200m
($273.46m) | |
5. | Canada | 1 | 9 December 2020 | 19 March 2021 | Canada 1 (2020) | [13][14] | £22.4bn
($30.63bn) | |
6. | CARIFORUM[15] (trade bloc) | 16 | 22 March 2019 | 1 January 2021 (provisional application)[7] | Suriname
5 March 2021 |
Misc 18 (2019) | [16][17] | £3.24bn
($4.43bn) |
7. | Central America | 6 | 18 July 2019 | 1 January 2021 | Misc 32 (2019) | [18][19] | £1.44bn
($1.97bn) | |
8. | Chile | 1 | 30 January 2019 | 1 January 2021 | Misc 2 (2019) | [20] | £2.1bn
($2.87bn) | |
9. | Ivory Coast | 1 | 15 October 2020 | 1 January 2021 | [21] | £401m
($548.29m) | ||
10. | Eastern and Southern Africa (ESA) (trade bloc)[22] | 3 | 31 January 2019 | 1 January 2021 | Misc 4 (2019) | [23] | £1.63bn
($2.23bn) | |
11. | Egypt | 1 | 5 December 2020 | 1 January 2021 (provisional application) |
Egypt No.1 (2020) | [24][7] | £3.5bn
($4.79bn) | |
12. | European Union (trade bloc) - (TCA) | 27 | 30 December 2020 | 1 May 2021 (Full ratification) |
[25][26] | £660bn
($902.42bn) | ||
13. | Faroe Islands | 1 | 31 January 2019 | 1 January 2021 | Denmark 1 (2019) | [27] | £295m
($403.35m) | |
14. | Georgia | 1 | 21 October 2019 | 1 January 2021 | Georgia 1 (2019) | [28] | £178m
($243.38m) | |
15. | Ghana | 1 | 5 February 2021[29] | (Provisional application) | £1.2bn ($1.64bn) | |||
16. | Israel | 1 | 18 February 2019 | 1 January 2021 | Israel 1 (2019) | [30] | £5.13bn
($7.01bn) | |
17. | Japan - (UK - Japan CEPA) | 1 | 23 October 2020 | 31 December 2020 | Japan No.1 (2020) | [31] | £31.6bn
($43.21bn) | |
18. | Jordan | 1 | 5 November 2019 | 1 May 2021 | Jordan 1 (2019) | [32] | £534m
($730.14m) | |
19. | Kenya | 1 | 3 November 2020 | 1 January 2021 | Kenya No. 1 (2020) | [33] | £1.4bn
($1.91bn) | |
20. | Kosovo | 1 | 3 December 2019 | 1 January 2021 | Kosovo 1 (2019) | [34] | £9m
($12.31m) | |
21. | Lebanon | 1 | 19 September 2019 | 1 January 2021 | Lebanon 1 (2019) | [35] | £820m
($1.19bn) | |
23. | Mexico | 1 | 15 December 2020 | 1 June 2021 | Mexico 1 (2020) | [36][7] | £5 bn
($6.84bn) | |
24. | Moldova | 1 | 24 December 2020 | 1 January 2021 | [37] | £395m
($540.08m) | ||
25. | Morocco | 1 | 26 October 2019 | 1 January 2021 | Morocco 1 (2019) | [38] | £2.5bn
($3.42bn) | |
26. | North Macedonia | 1 | 3 December 2020 | 1 January 2021 (provisional application)[7] | [39] | £1.8bn
($2.46bn) | ||
27. | Norway, Iceland & Liechtenstein | 3 | 4 June 2021 | 8 July 2021 | MS No.8/2020 | [40][41] | £26.7bn
($36.51bn) | |
28. | Pacific States (Fiji, Papua New Guinea, Solomon Islands and Samoa | 4 | 14 March 2019 | 1 January 2021 | Solomon Island
5 January 2021. Samoa 11 January 2021 |
Misc 15 (2019) | [42][43][44] | £178m
($243.38m) |
29. | Palestine Authority | 1 | 18 February 2019 | 1 January 2021 | Misc 14 (2019) | [47] | £11m
($5.04m) | |
30. | Serbia | 1 | 30 April 2021 | 14 May 2021 | [48] | £682m
($942m) | ||
31. | Singapore | 1 | 10 December 2020 | 12 February 2021 | Singapore 1 (2020) | [49] | £17.6bn
($24.06bn) | |
32. | South Korea | 1 | 22 August 2019 | 1 January 2021 | Korea 1 (2019) | [50] | £11.7bn
($16.00bn) | |
33. | SACUM (trade bloc) |
6 | 9 October 2019 | 1 January 2021 | Misc 34 (2019) | [51] | £12.12bn
($16.57bn) | |
34. | Switzerland | 1 | 11 February 2019 | 1 January 2021 | Switzerland 4 (2019) | [52] | £38.58bn | |
35. | Tunisia | 1 | 4 October 2019 | 1 January 2021 | Tunisia 1 (2019) | [53] | £611m
($835.42m) | |
36. | Turkey | 1 | 29 December 2020 | 1 January 2021 (provisional application)[7] | [54] | £18.6bn
($25.43bn) | ||
37. | Ukraine | 1 | 8 October 2020 | 1 January 2021 | Ukraine No.1 (2020) | [55] | £1.53bn
($2.09bn) | |
38. | Vietnam | 1 | 10 December 2020 | 1 January 2021 (provisional application)[7] | Vietnam No.1 (2020) | [56] | £5.7bn
($7.79bn) | |
Total no of countries or territories the UK applies trade deals with | 96 | Total value of trade deals signed | £910.9bn ($1261.6bn)
65% of total trade |
Signed agreements that are being joined by new countries[]
No | Nation (s) | Trade agreement being joined | Status | Citation |
---|---|---|---|---|
1. | Angola | Southern African Customs Union and Mozambique
(SACUM) (trade bloc) |
[57] | |
2. | Burundi, Uganda, Rwanda, South Sudan and Tanzania | Kenya | [58] |
Mutual recognition agreements[]
Mutual recognition in relation to Conformity assessment, Certificates and Markings
No | Nation (s) | Signed | Citation (s) |
---|---|---|---|
1 | Australia | 18 January 2019 | [59] |
2 | New Zealand | 21 January 2019 | [60] |
3 | United States of America | 14 February 2019 | [61] |
Agreements being negotiated[]
No | Nation (s) | Citation (s) | Status | Trade continuity agreement | Dedicated page | Comment | |
---|---|---|---|---|---|---|---|
1. | Australia | 1 | [62] | Broad terms agreed[63] | UK–Australia FTA | Broad terms agreed by both sides.[64][65] | |
2. | Algeria | 1 | Discussions ongoing | Yes | |||
3. | Bosnia and Herzegovina (Western Balkans) | 2 | Discussions ongoing | Yes | |||
4. | CPTTP | 11 | [66] | Applied for membership | UK CPTTP FTA Accession | Negotiations started.[67] | |
5. | European Free Trade Area (part) (Norway, Iceland & Liechtenstein) | 3 | [68] | Negotiations concluded and agreed in principle on 4 June 2021 | Terms of the EEA EFTA - UK free trade agreement were agreed on 4 June 2021.[68] | ||
6. | India
(Enhanced trade agreement) |
1 | [69] | Negotiations ongoing | The U.K and India have agreed an early harvest agreement and are now negotiating an enhanced trade agreement.[70] | ||
7. | Montenegro (Western Balkans) | 1 | Discussion ongoing | Yes | |||
8. | New Zealand | 1 | [71] | Negotiations Ongoing | UK–New Zealand FTA | Fifth round of negotiations started June 2021.[72] | |
9. | United States of America | 1 | [73] | Negotiations ongoing | UK–US FTA | Fourth round of negotiations took place in September 2020. Agreement is not expected in 2020.[74] |
Agreements at pre-negotiation stage[]
No | Nation (s) | Number of nations
represented |
Citation | Status | Comments |
---|---|---|---|---|---|
1. | Bangladesh | 1 | [75] | Pre-negotiations | |
2. | GCC | 6 | [76] | Pre-negotiations | |
3. | Mercosur | 4 | [77] | Pre-negotiations | |
4. | Taiwan | 1 | [78] | Pre-negotiations |
UK top 10 trading partners[]
Exports | Imports | |||||||
---|---|---|---|---|---|---|---|---|
Rank | Trade Partner | Billion Pounds |
% of Total | Rank | Trade Partner | Billion Pounds |
Total Export | |
1 | United States[a] | 138.7 | 19.9% | 1 | United States | 91.6 | 12.6% | |
2 | Germany (EU member) | 58.6 | 8.4% | 2 | Germany (EU member) | 78.0 | 10.8% | |
3 | France (EU member) | 42.8 | 6.1% | 3 | Netherlands (EU member) | 51.1 | 7.1% | |
4 | Netherlands (EU member) | 42.8 | 6.1% | 4 | China | 49.0 | 6.8% | |
5 | Ireland (EU member) | 38.3 | 5.5% | 5 | France (EU member) | 47.5 | 6.6% | |
6 | China | 31.4 | 4.5% | 6 | Spain (EU member) | 34.1 | 4.7% | |
7 | Switzerland (EFTA member) | 25.0 | 3.6% | 7 | Belgium (EU member) | 28.6 | 3.9% | |
8 | Italy (EU member) | 21.4 | 3.1% | 8 | Italy (EU member) | 26.6 | 3.7% | |
9 | Spain (EU member) | 19.3 | 2.8% | 9 | Ireland (EU member) | 24.5 | 3.4% | |
10 | Belgium (EU member) | 18.5 | 2.6% | 10 | Norway (EFTA member) | 17.8 | 2.5% | |
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 cover up to 2019 only.[79]
See also[]
- List of free trade agreements
- List of multilateral trade agreements
- List of bilateral trade agreements
- UK common framework policies – UK internal market policies post-Brexit
- UK - Crown Dependencies Customs Union – Free trade area
Notes[]
- ^ including Puerto Rico
References[]
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- Free trade agreements of the United Kingdom
- Treaties of the United Kingdom
- Foreign relations of the United Kingdom