What Countries Does the Uk Have a Free Trade Agreement with

• 27/11/2021

As a global economic powerhouse, the United Kingdom has been actively seeking to expand its trade relations around the world. One of the ways to achieve this is through free trade agreements (FTAs) with other countries. These agreements allow for reduced tariffs and trade barriers, leading to increased profits for businesses and lower prices for consumers.

So, what countries does the UK have a free trade agreement with?

At present, the UK has free trade agreements with over 60 countries, including the European Union (EU) countries via the Trade and Cooperation Agreement (TCA) post-Brexit. The TCA was approved by the UK Parliament on December 30, 2020, and came into effect on January 1, 2021. It ensures tariff-free and quota-free trade between the UK and the EU. Additionally, the UK also has a free trade agreement with the European Free Trade Association (EFTA), which comprises Iceland, Liechtenstein, Norway, and Switzerland.

Outside of Europe, the UK has signed trade agreements with several countries. In 2020, the UK signed its first trade agreement with a non-European country since Brexit: Japan. The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) allows for tariff-free trade of 99% of UK exports to Japan, which is worth over £1.5 billion a year.

The UK has also signed FTAs with several African countries, including Kenya, South Africa, and Morocco. These agreements aim to promote sustainable economic growth, create jobs, and reduce poverty in Africa. Moreover, the UK signed its first post-Brexit FTA with a Latin American country in June 2021. The UK-Mexico Trade Continuity Agreement allows for tariff-free trade in most goods between the two countries, contributing to a boost in trade and investment between the UK and Mexico.

The UK has expressed its interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP), a trade agreement between eleven countries in the Asia-Pacific region, including Japan, Australia, Canada, and Singapore. If the UK joins the CPTPP, it would open up new markets for British businesses and facilitate trade with some of the world`s fastest-growing economies.

In conclusion, the UK has an extensive network of free trade agreements around the world, including with countries in Europe, Africa, and Latin America. These agreements have the potential to benefit the UK`s economy, businesses, and consumers by reducing trade barriers and promoting sustainable, inclusive economic growth.