The United Kingdom`s (UK) decision to leave the European Union (EU) has brought about numerous changes for the country. One of those changes is the need for the UK to establish new trade agreements with other countries. As a result, the UK has been actively pursuing free trade agreements (FTAs) with countries around the world. In this article, we will explore the UK free trade agreement list and what it means for the country.
What is a free trade agreement?
A free trade agreement is a treaty between two or more countries that eliminates or reduces barriers to trade, such as tariffs and quotas. This agreement enables the free flow of goods and services between the signatory countries, leading to increased trade and economic growth.
UK free trade agreement list
Since leaving the EU, the UK has been actively pursuing FTAs with countries around the world. Some of the countries that the UK has secured trade agreements with include:
Japan: The UK-Japan Comprehensive Economic Partnership Agreement (CEPA) came into effect on January 1, 2021. This agreement eliminates tariffs on 99% of UK exports to Japan and makes it easier for UK businesses to operate in Japan.
Canada: The UK-Canada Trade Continuity Agreement (TCA) came into effect on April 1, 2021. This agreement replicates the EU-Canada Comprehensive Economic and Trade Agreement (CETA) and ensures continuity of trade for UK and Canadian businesses.
Kenya: The UK-Kenya Economic Partnership Agreement (EPA) was signed on November 8, 2020. This agreement will provide businesses in both countries with duty-free and quota-free access to each other`s markets.
Australia: The UK-Australia Free Trade Agreement negotiations have been ongoing since June 2020. The aim of this agreement is to eliminate tariffs on goods traded between the two countries and to improve trade in services and investment.
New Zealand: The UK-New Zealand Free Trade Agreement negotiations have also been ongoing since June 2020. The aim of this agreement is to improve trade between the two countries, particularly in agriculture, digital trade, and climate change.
Benefits of free trade agreements
Free trade agreements come with numerous benefits for countries. These benefits include:
Increased trade: FTAs eliminate or reduce tariffs and other barriers to trade, which leads to increased trade between the signatory countries.
Lower costs: Eliminating tariffs and non-tariff barriers reduces the cost of goods, making them more affordable for consumers.
Increased investment: FTAs can increase investment between signatory countries, leading to job creation and economic growth.
Improved competitiveness: Businesses in signatory countries can gain a competitive edge by accessing new markets and taking advantage of the tariff reductions.
Conclusion
The UK free trade agreement list is constantly growing, with negotiations ongoing with several countries. These FTAs are essential for the UK as it establishes itself as an independent trading nation post-Brexit. By eliminating barriers to trade and increasing investment, these trade agreements will help the UK`s economy in the long run.