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
  Crown Dependencies and Overseas Territories
  Active agreements
  Renegotiating active agreements
  Agreement in principle
  Negotiations ongoing

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 38 active free trade agreements with nations and trade blocs, covering 99 countries and territories.[3][4] Five of these are 'new' trade agreements, such as with Australia and New Zealand. The remaining 33 are continuity agreements.[5][6] The UK has further arrangements covering 17 British Overseas Territories and Crown Dependencies.[7][8][9][10]

In addition, 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.[11][12]

The UK's negotiating team will consult with its Strategic Trade Advisory Group throughout the negotiations.[13]

Competence and ratification process

According to UK law the United Kingdom Parliament has the power to pass law in all policy areas.[14]

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.[15]

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[15]

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.[15]

Active agreements

The following 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
date
Coverage Treaty Trade value
(2022)[16]
Ref.
Albania 1 5 February 2021 3 May 2021 Goods & Services Continuity £477m [17][18]
Andean Countries
Colombia[lower-alpha 1]
Ecuador
Peru
3 15 May 2019 1 January 2021 Goods & Services Continuity £5,655m [19][20]
Australia 1 16 December 2021 31 May 2023 Goods & Services New £15,080m [21][22]
Cameroon 1 28 December 2020 1 January 2021 Goods Continuity £938m [23][24]
Canada 1 22 December 2020 1 January 2021 Goods & Services Continuity £25,221m [25][26]
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 Goods & Services Continuity £4,937m [28][29]
Central America
Costa Rica
El Salvador
Guatemala
Honduras
Nicaragua
Panama
6 18 July 2019 1 January 2021 Goods & Services Continuity £2,545m [30][31]
Chile 1 30 January 2019 1 January 2021 Goods & Services Continuity £1,669m [32][33]
Côte d'Ivoire 1 15 October 2020 1 January 2021 Goods Continuity £638m [34][35]
Eastern and Southern Africa
Mauritius
Seychelles
Zimbabwe
3 31 January 2019 1 January 2021 Goods Continuity £1,174m [36][37]
Egypt 1 5 December 2020 1 January 2021 Goods Continuity £4,733m [38][39]
European Union 31 30 December 2020 1 January 2021 Goods & Services New £772,000m [40][41]
Faroe Islands 1 31 January 2019 1 January 2021 Goods Continuity £2,242m [42][43]
Georgia 1 21 October 2019 1 January 2021 Goods & Services Continuity £411m [44][45]
Ghana 1 2 March 2021 5 March 2021 Goods Continuity £2,230m [46][47]
Iceland
Liechtenstein[lower-alpha 7]
Norway
3 8 July 2021 1 December 2021 Goods & Services New £56,290m[lower-alpha 8] [48][49]
Israel 1 18 February 2019 1 January 2021 Goods Continuity £7,187m [50][51]
Japan 1 23 October 2020 1 January 2021 Goods & Services New £27,735m [52][53]
Jordan 1 5 November 2019 1 May 2021 Goods Continuity £940m [54][55]
Kenya 1 8 December 2020 1 January 2021 Goods Continuity £1,177m [56][57]
Kosovo 1 3 December 2019 1 January 2021 Goods Continuity £13m [58][59]
Lebanon 1 19 September 2019 1 January 2021 Goods Continuity £632m [60][61]
Liechtenstein[lower-alpha 9]
Switzerland
2 11 February 2019 1 January 2021 Goods Continuity £52,828m[lower-alpha 10] [63][64]
Mexico 1 15 December 2020 1 June 2021 Goods & Services Continuity £4,796m [65][66]
Moldova 1 24 December 2020 1 January 2021 Goods & Services Continuity £2,215m [67][68]
Morocco 1 26 October 2019 1 January 2021 Goods Continuity £3,115m [69][70]
New Zealand 1 28 February 2022 31 May 2023 Goods & Services New £2,516m [71][72]
North Macedonia 1 3 December 2020 1 January 2021 Goods & Services Continuity £2,341m [73][74]
Pacific States
Fiji
Papua New Guinea
Samoa[lower-alpha 11]
Solomon Islands[lower-alpha 12]
4 14 March 2019 1 January 2021 Goods Continuity £284m [77][78]
Palestinian Authority 1 18 February 2019 1 January 2021 Goods Continuity £59m [79][80]
Southern Africa Customs Union and Mozambique
Botswana
Eswatini
Lesotho
Mozambique
Namibia
South Africa
6 9 October 2019[lower-alpha 13] 1 January 2021 Goods Continuity £11,668m [82][83]
Serbia 1 16 April 2021 20 May 2021 Goods & Services Continuity £867m [84][85]
Singapore 1 10 December 2020 1 January 2021 Goods & Services Continuity[lower-alpha 14] £20,176m [88][89]
South Korea 1 22 August 2019 1 January 2021 Goods & Services Continuity £18,346m [90][91]
Tunisia 1 4 October 2019 1 January 2021 Goods Continuity £567m [92][93]
Turkey 1 29 December 2020 1 January 2021 Goods Continuity £23,482m [94][95]
Ukraine 1 8 October 2020 1 January 2021 Goods & Services Continuity £1,734m [96][97]
Vietnam 1 29 December 2020 1 January 2021 Goods & Services Continuity £6,943m [98][99]

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 Coverage Comment Ref.
 Akrotiri and Dhekelia 31[lower-alpha 15] 30 December 2020 1 May 2021 Goods & Services Trade 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. [100][101]
British Overseas Territories
Anguilla
Ascension Island
Bermuda
British Antarctic Territory
British Indian Ocean Territory
British Virgin Islands
Cayman Islands
Falkland Islands
Montserrat
Pitcairn Islands
Saint Helena
South Georgia and the South Sandwich Islands
Tristan da Cunha
Turks and Caicos Islands
14 9 November 2020 1 January 2021 Goods This arrangement acts as a continuity free trade agreement between 14 Overseas Territories and the UK. [8][102]
Crown Dependencies Customs Union
Guernsey
Isle of Man
Jersey
3 26 November 2018 9 December 2020 Goods & Services 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. [7][103]
Gibraltar 1 24 October 2019 1 January 2021 Goods & Services 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. [104][10]

Negotiations

The following negotiations focuses 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
represented
Coverage Trade value (2022)[105] Status Progress Ref.
Algeria 1 Goods £2,346m Negotiations stagnated Negotiations on hold since 2021. [106][107]
Bosnia and Herzegovina 1 Goods & Services £218m Negotiations stagnated Negotiations on hold since 2021. [108][109]
Comprehensive and Progressive Agreement for Trans-Pacific Partnership
Australia
Brunei
Canada
Chile
Japan
Malaysia
Mexico
New Zealand
Peru
Singapore
Vietnam
11 Goods & Services £113,000m Agreement signed on 16 July 2023 Awaiting ratification of the UK's accession from member states. [110][111]
Greenland 1 Goods £4m Negotiations stagnated Negotiations opened in January 2022. [112][113]
Gulf Cooperation Council
Bahrain
Kuwait
Oman
Qatar
Saudi Arabia
United Arab Emirates
6 Goods & Services £61,300m Negotiations ongoing Fourth round of negotiations took place in July 2023. [114][115]
India 1 Goods & Services £35,940m Negotiations ongoing Twelfth round of negotiations took place in August 2023. [116][117]
Maldives 1 Goods £432m Discussions ongoing Trade consultation closed on 2 August 2023. [118][119]
Montenegro 1 Goods & Services £69m Negotiations stagnated Negotiations on hold since 2021. [120][121]
United States 1 Goods & Services £279,150m Negotiations stagnated Fifth round of negotiations took place in October 2020. [122][123]

Re-negotiations

The following negotiations focuses on "new" trade agreements with countries which rolled over previous EU agreements.

Nation (s) No of nations represented Coverage Trade value (2022) Status Progress Ref.
Canada 1 Goods & Services £25,221m Negotiations ongoing Fifth round of negotiations took place in March 2023. [124][125]
Israel 1 Goods & Services £7,187m Negotiations ongoing Second round of negotiations took place in May 2023. [126][127]
Mexico 1 Goods & Services £4,796m Negotiations ongoing Negotiations opened on 20 May 2022. [128][129]
South Korea 1 Goods & Services £18,346m Discussions ongoing Trade consultation closed on 2 February 2023. [130][131]
Switzerland 1 Goods & Services £52,828m Negotiations ongoing Second round of negotiations took place in September to October 2023. [132][133]
Turkey 1 Goods & Services £23,482m Discussions ongoing Announced on 18 July 2023. [134][135]
Ukraine 1 Goods & Services £1,734m Agreement signed on 20 March 2023. This Digital Trade Agreement will expand upon the Ukraine-UK FTA when it is entered into force. [136][137]

Potential enlargement

The following countries can accede 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. [138]
Comoros
Madagascar
Zambia
Eastern and Southern Africa 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.
[139][140]
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. [141][142]
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. [143]

Obsolete agreements

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

Nation (s) No of nations represented Signed Effective Obsolete Coverage Note Superseded by Ref.
France 1 23 January 1860 23 January 1860 1 January 1892 Goods Became obsolete after the introduction of the Méline tariff by the French Government. [144][145]
 Belgium
1 23 July 1862 23 July 1862 1 August 1897 Goods Prime Minister Salisbury decided to withdraw from the treaty, because of a clause that was contrary to the policy of Imperial Preference. [146][147]
 Ireland 1 19 December 1965 1 July 1966 1 January 1973 Goods 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 [148][149]
 Colombia 1 18 October 2019 1 January 2021 28 June 2021 Goods & Services 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
[150]
 Iceland
 Norway
2 8 December 2020 1 January 2021 8 July 2021 Goods Iceland-Norway Continuity FTA was superseded by the Enhanced FTA with Liechtenstein.  Iceland
 Liechtenstein
 Norway
[151][152][153]

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 Coverage Note Superseded by Ref.
European Free Trade Association
 Austria
 Denmark
 Iceland[lower-alpha 16]
 Norway
 Portugal
 Sweden
  Switzerland
7 4 January 1960 3 May 1960 31 December 1972 Goods & Services 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 [154]
European Economic Community
 Belgium
 Denmark
 France
 Greece[lower-alpha 17]
 Ireland
 Italy
 Luxembourg
 Netherlands
 Portugal[lower-alpha 18]
 Spain[lower-alpha 19]
West Germany/Germany[lower-alpha 20]
11 22 January 1972 1 January 1973 1 November 1993 Goods & Services The UK joined the European Economic Community, along with Denmark and Ireland. The EEC was incorporated into the European Union. European Union [155]
European Union[lower-alpha 21] 32 7 February 1992 1 November 1993 1 January 2020 Goods & Services Following the result 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. [156][157]

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 Coverage Note Ref.
 Algeria 1 22 April 2002 1 September 2005 1 January 2021 Goods The UK has no free trade agreement with Algeria. [158]
 Bosnia and Herzegovina 1 16 June 2008 1 June 2015 1 January 2021 Goods & Services The UK has no free trade agreement with Bosnia and Herzegovina. [159]
EU Overseas Countries and Territories
Anguilla
Aruba
Bermuda
Bonaire
British Indian Ocean Territory
British Virgin Islands
Cayman Islands
Curaçao
Falkland Islands
French Polynesia
French Southern and Antarctic Lands
Greenland
Montserrat
New Caledonia
Pitcairn Islands
Saba
Saint Barthélemy
Saint Helena, Ascension and Tristan da Cunha
Saint Pierre and Miquelon
Sint Eustatius
Sint Maarten
South Georgia and the South Sandwich Islands
Turks and Caicos Islands
Wallis and Futuna
13 27 November 2001 2 December 2001 1 January 2021 Goods 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. [160][161][162]
 Montenegro 1 15 October 2007 1 May 2010 1 January 2021 Goods & Services The UK has no free trade agreement with Montenegro. [163]

UK top trading partners

Export and import markets for goods in 2020 & 2021, seasonally adjusted
Figures in £millions sterling
Exports 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[lower-alpha 47] 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[164][165]

See also

Notes

  1. Joined 28 June 2022
  2. Joined 5 March 2021.[27]
  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 San Marino 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 figure only represents trade value between the UK and the cumulative value of Iceland and Norway. Liechtenstein trade accounts for 233m but is divided between two agreements.
  9. 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.[62]
  10. This figure only represents trade value between the UK and Switzerland. Liechtenstein trade accounts for 233m but is divided between two agreements.
  11. Joined 11 January 2021[75]
  12. Joined 5 January 2021[76]
  13. South Africa signed the agreement on 16 October 2019.[81]
  14. Expanded on by the Singapore-UK Digital Economy Agreement which entered in force on 14 June 2022.[86][87]
  15. See European Union-UK FTA.
  16. Joined 1 January 1970
  17. Joined 1 January 1981
  18. Joined 1 January 1986
  19. Joined 1 January 1986
  20. German reunification took place in 1990
  21. Through the European Union customs union and the European single market.
  22. Through the European Union customs union, joined 1 May 2004.
  23. Through the European Union customs union.
  24. Joined 1 January 1995
  25. Joined 1 January 2007
  26. Joined 1 July 2013
  27. Joined 1 May 2004
  28. Joined 1 May 2004
  29. Joined 1 May 2004
  30. Joined 1 January 1995
  31. Through UK membership
  32. Joined 1 May 2004
  33. Through the European single market.
  34. Joined 1 May 2004
  35. Through the European single market.
  36. Joined 1 May 2004
  37. Joined 1 May 2004
  38. Through the European Union customs union.
  39. Through the European single market.
  40. Joined 1 May 2004
  41. Joined 1 January 2007
  42. Through the European Union customs union.
  43. Joined 1 May 2004
  44. Joined 1 May 2004
  45. Joined 1 January 1995
  46. Through the European single market.
  47. including Puerto Rico

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