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 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[update], the United Kingdom has concluded four new trade agreements: with Japan; with its biggest trading partner, the EU; New Zealand and with Australia. In addition, it has agreed 35 'trade continuity agreements[a]. [1][2] 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 former [needs update] Johnson ministry describes itself as a proponent of free trade.[3][4]
The UK's negotiating team will consult with its Strategic Trade Advisory Group throughout the negotiations.[5]
Competence and ratification process
According to UK law the United Kingdom Parliament has the power to pass law in all policy areas.[6]
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.[7]
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[7]
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.[7]
Obsolete agreements
No | Nation (s) | Notes | Superseded by |
---|---|---|---|
1. | Norway & Iceland | The primary agreement with Iceland & Norway and the separate agreement with Liechtenstein were continuity agreements, these have since been superseded by two separate agreements and then by the current agreement covering all of the above mentioned countries. | Norway, Iceland & Liechtenstein |
Signed agreements
As of 29 December 2020[update], the UK had 38 trade agreements[8][9]with 97 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.[10] However, for many these treaties will be provisionally applied, or through a "bridging mechanism" (exchange of diplomatic notes verbale etc.) continuity is achieved.[10]
No | Nation (s) | No of nations represented |
Signed | Effective | Accession of new countries | Treaty number | Citation | Trade value (2019) |
---|---|---|---|---|---|---|---|---|
1. | Australia | 1 | 17 December 2021 | 31 December 2022[11] | [12][13] | £13.9bn
($19.30bn) | ||
2. | Albania | 1 | 5 February 2021[14] | 14 May 2021[10] | Albania 1 (2021) | £158m ($216.8m) | ||
3. | Andean Community
Colombia (bridging mechanism), Ecuador and Peru (Full ratification) |
3 | 15 May 2019 | 1 January 2021 | Misc 22 (2019) | [15][16] | £2.9bn
($3.97bn) | |
4. | Cameroon | 1 | 30 December 2020 | 19 July 2021 (full ratification)[10] | Cameroon No.1 (2020) | [17] | £200m
($273.46m) | |
5. | Canada | 1 | 9 December 2020 | 19 March 2021 | Canada 1 (2020) | [18][19] | £22.4bn
($30.63bn) | |
6. | CARIFORUM[20] (trade bloc) | 16 | 22 March 2019 | 1 January 2021 (provisional application)[10] | Suriname
5 March 2021 |
Misc 18 (2019) | [21][22] | £3.24bn
($4.43bn) |
7. | Central America | 6 | 18 July 2019 | 1 January 2021 | Misc 32 (2019) | [23][24] | £1.44bn
($1.97bn) | |
8. | Chile | 1 | 30 January 2019 | 1 January 2021 | Misc 2 (2019) | [25] | £2.1bn
($2.87bn) | |
9. | Côte d'Ivoire | 1 | 15 October 2020 | 1 January 2021 | Cote d’Ivoire No.1 (2020) | [26] | £401m
($548.29m) | |
10. | Eastern and Southern Africa (ESA) (trade bloc)[27] | 3 | 31 January 2019 | 1 January 2021 | Misc 4 (2019) | [28] | £1.63bn
($2.23bn) | |
11. | Egypt | 1 | 5 December 2020 | 1 January 2021 (provisional application) |
Egypt No.1 (2020) | [29][10] | £3.5bn
($4.79bn) | |
12. | European Union (trade bloc) – (TCA) | 27 | 30 December 2020 | 1 May 2021 (Full ratification) |
Treaty Series No.8 (2021) | [30][31] | £660bn
($902.42bn) | |
13. | Faroe Islands | 1 | 31 January 2019 | 1 January 2021 | Denmark 1 (2019) | [32] | £295m
($403.35m) | |
14. | Georgia | 1 | 21 October 2019 | 1 January 2021 | Georgia 1 (2019) | [33] | £178m
($243.38m) | |
15. | Ghana | 1 | 5 February 2021[34] | (Provisional application) | Ghana No.1 (2021) | £1.2bn ($1.64bn) | ||
16. | Israel | 1 | 18 February 2019 | 1 January 2021 | Israel 1 (2019) | [35] | £5.13bn
($7.01bn) | |
17. | Japan - (UK - Japan CEPA) | 1 | 23 October 2020 | 31 December 2020 | Japan No.1 (2020) | [36] | £31.6bn
($43.21bn) | |
18. | Jordan | 1 | 5 November 2019 | 1 May 2021 | Jordan 1 (2019) | [37] | £534m
($730.14m) | |
19. | Kenya | 1 | 3 November 2020 | 1 January 2021 | Kenya No. 1 (2020) | [38] | £1.4bn
($1.91bn) | |
20. | Kosovo | 1 | 3 December 2019 | 1 January 2021 | Kosovo 1 (2019) | [39] | £9m
($12.31m) | |
21. | Lebanon | 1 | 19 September 2019 | 1 January 2021 | Lebanon 1 (2019) | [40] | £820m
($1.19bn) | |
22. | Mexico | 1 | 15 December 2020 | 1 June 2021 | Mexico 1 (2020) | [41][10] | £5 bn
($6.84bn) | |
23. | Moldova | 1 | 24 December 2020 | 1 January 2021 | Moldova No. 1 (2021) | [42] | £395m
($540.08m) | |
24. | Morocco | 1 | 26 October 2019 | 1 January 2021 | Morocco 1 (2019) | [43] | £2.5bn
($3.42bn) | |
25. | New Zealand | 1 | 28 February 2022 | [44] | £2.3bn ($3.2bn) | |||
26. | North Macedonia | 1 | 3 December 2020 | 1 January 2021 (provisional application)[10] | North Macedonia No. 1 (2020) | [45] | £1.8bn
($2.46bn) | |
27. | Norway, Iceland & Liechtenstein | 3 | 4 June 2021 | 8 July 2021 | MS No.8/2020 | [46] | £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. 11 January 2021 |
Misc 15 (2019) | [47][48][49] | £178m
($243.38m) |
29. | Palestinian Authority | 1 | 18 February 2019 | 1 January 2021 | Misc 14 (2019) | [52] | £11m
($5.04m) | |
30. | Serbia | 1 | 30 April 2021 | 14 May 2021 | Serbia No.1 (2021) | [53] | £682m
($942m) | |
31. | Singapore | 1 | 10 December 2020 | 12 February 2021 | Singapore 1 (2020) | [54] | £17.6bn
($24.06bn) | |
32. | South Korea | 1 | 22 August 2019 | 1 January 2021 | Korea 1 (2019) | [55] | £11.7bn
($16.00bn) | |
33. | SACUM (trade bloc) |
6 | 9 October 2019 | 1 January 2021 | Misc 34 (2019) | [56] | £12.12bn
($16.57bn) | |
34. | Switzerland | 1 | 11 February 2019 | 1 January 2021 | Switzerland 4 (2019) | [57] | £38.58bn | |
35. | Tunisia | 1 | 4 October 2019 | 1 January 2021 | Tunisia 1 (2019) | [58] | £611m
($835.42m) | |
36. | Turkey | 1 | 29 December 2020 | 1 January 2021 (provisional application)[10] | Turkey No.1 (2021) | [59] | £18.6bn
($25.43bn) | |
37. | Ukraine | 1 | 8 October 2020 | 1 January 2021 | Ukraine No.1 (2020) | [60] | £1.53bn
($2.09bn) | |
38. | Vietnam | 1 | 10 December 2020 | 1 January 2021 (provisional application)[10] | Vietnam No.1 (2020) | [61] | £5.7bn
($7.79bn) | |
Total no of countries or territories the UK applies trade deals with | 97 | 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) |
[62] | |
2. | Burundi, Uganda, Rwanda, South Sudan and Tanzania | Kenya | [63] |
Mutual recognition agreements
Mutual recognition in relation to Conformity assessment, Certificates and Markings
No | Nation (s) | Signed | Citation (s) |
---|---|---|---|
1 | Australia | 18 January 2019 | [64] |
2 | New Zealand | 21 January 2019 | [65] |
3 | United States of America | 14 February 2019 | [66] |
Agreements being negotiated
No | Nation (s) | No of nations repeesented | Citation (s) | Status | Dedicated page | Comment |
---|---|---|---|---|---|---|
1. | Algeria | 1 | Discussions ongoing | |||
2.. | Bosnia and Herzegovina (Western Balkans) | 2 | Discussions ongoing | |||
3. | CPTTP | 11 | [67] | Moved into the second ‘market access’ phase of negotiations | UK CPTTP FTA Accession | Negotiations started.[68] |
4.. | European Free Trade Area (part) (Norway, Iceland & Liechtenstein) | 3 | [69] | 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.[69] | |
5.. | GCC | 6 | [citation needed] | Discussions ongoing | The first round of negotiations began on the 11 October 2021 | |
6. | India
(Enhanced trade agreement) |
1 | [70] | Negotiations ongoing | ||
7. | Montenegro (Western Balkans) | 1 | Discussion ongoing | |||
8. | United States of America | 1 | [71] | Negotiations ongoing | UK–US FTA | Fourth round of negotiations took place in September 2020. Agreement is not expected in 2020.[72] |
Agreements at pre-negotiation stage
No | Nation (s) | Number of nations
represented |
Citation | Status | Comments |
---|---|---|---|---|---|
1. | Bangladesh | 1 | [73] | Pre-negotiations | |
3. | Mercosur | 4 | [74] | Pre-negotiations | |
4. | Taiwan | 1 | [75] | Pre-negotiations |
UK top trading partners
Exports | Imports | ||||||
---|---|---|---|---|---|---|---|
Rank | Trade Partner | Million Pounds | % of Total | Rank | Trade Partner | Million Pounds |
% of Total |
1. | United States[b] | 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 [76][77]
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”.[78]
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
- United Kingdom–Crown Dependencies Customs Union – Free trade area
Notes
- ^ These agreements replicate pre-existing agreements with the EU through a process called grandfathering
- ^ including Puerto Rico
References
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- ^ Fox, Liam (30 January 2019). "UK and Chile sign continuity agreement". Gov.UK.UK–Chile FTA
- ^ "Exporting to Cote d'Ivoire from 1 January 2021". GOV.UK.
- ^ Including Mauritius, Seychelles and Zimbabwe
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- ^ Morton, Wendy; Jayawardena, Ranil (24 December 2020). "UK and Moldova sign Strategic Partnership, Trade and Cooperation Agreement". Gov.UK.
- ^ Burns, Conor (26 October 2019). "UK and Morocco sign continuity agreement". Gov.UK.UK–Morocco FTA
- ^ "UK-New Zealand Free Trade Agreement". Gov.UK. 28 February 2022.
- ^ "North Macedonia and UK sign Partnership, Trade and Cooperation Agreement". Gov.UK. 3 December 2020.
- ^ "United Kingdom signs free trade deal with Norway, Iceland and Liechtenstein". Gov.UK. 8 July 2021.
- ^ "UK and Pacific Islands sign trade continuity agreement". Gov.UK. 14 March 2019. UK–Pacific States FTA
- ^ "Solomon Islands Accession onto the UK-Pacific interim Economic Partnership Agreement". Solomon Island Government. 5 January 2021.
- ^ Rheeney, Alexander (11 January 2022). "Samoa signs trade agreement with U.K." Samoa Observer.
- ^ "Memorandum of Understanding between the UK and Samoa". Gov.UK. 30 December 2020.
- ^ "Memorandum of Understanding between the UK and the Solomon Islands". Gov.UK. 30 December 2020.
- ^ "UK and Palestinian Authority sign trade continuity agreement". Gov.UK. 18 February 2019.UK–Palatine Authority FTA
- ^ "Serbia: UK and Serbia sign Partnership, Trade and Cooperation Agreement". Gov.UK. 30 April 2021.
- ^ "Singapore, United Kingdom sign free trade agreement". CNA. 10 December 2020.
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- ^ "Government scraps plan to enforce human rights with Brexit trade deals, leaked letter reveals". The Independent. Retrieved 28 August 2022.
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