As the United Kingdom (UK) continues its transition out of the European Union (EU), many businesses are asking whether the country has any free trade agreements in place. Free trade agreements are crucial for businesses as they remove tariffs and trade barriers, making it easier for them to trade goods and services with other countries. In this article, we will answer the question, “Does the UK have any free trade agreements?”
What is a Free Trade Agreement?
Before we delve into whether the UK has any free trade agreements, let us first define what a free trade agreement is. A free trade agreement (FTA) is a pact between two or more countries that removes import and export tariffs and other trade barriers on goods and services. FTAs facilitate free trade among countries, leading to increased trade and economic growth.
Does the UK have any Free Trade Agreements?
Following Brexit, the UK left the EU’s single market and customs union, which meant that it would need to forge its own free trade agreements with other countries. The UK has succeeded in negotiating several free trade agreements in this transition period. Here are the major FTAs that the UK has in place:
1. Japan-UK Comprehensive Economic Partnership Agreement
In October 2020, the UK and Japan signed a free trade agreement, which came into force on January 1, 2021. This agreement eliminated almost all tariffs on goods traded between the two countries, making it easier for businesses to trade between the two countries. It covers sectors such as food and drink, automotive, and professional and business services.
2. UK-Switzerland Continuity Agreement
In December 2020, the UK signed a continuity agreement with Switzerland, which came into force on January 1, 2021. This agreement ensured that businesses could continue trading between the two countries under the same terms as the UK’s previous trade agreement with Switzerland as a member of the EU.
3. UK-Singapore Free Trade Agreement
In December 2020, the UK signed a free trade agreement with Singapore, which came into force on January 1, 2021. The agreement eliminates tariffs on goods, provides easier access for UK businesses to the Singaporean market, and allows for more flexible rules of origin.
4. UK-Southern African Customs Union and Mozambique Economic Partnership Agreement
In January 2021, the UK signed a free trade agreement with the Southern African Customs Union (SACU) and Mozambique. This agreement aims to promote trade between the UK and the African region and includes provisions on the liberalization of trade in goods, services and investment.
Conclusion
In conclusion, the UK has been successful in securing several free trade agreements during its transition out of the EU. These agreements ensure that businesses can continue trading with other countries under favorable terms and that the UK’s economy can continue to grow. As the UK continues to negotiate free trade agreements with other countries, businesses can expect to see more opportunities for international trade.