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The United Kingdom has been forging ahead with post-Brexit trade agreements since leaving the European Union on January 31, 2020. The UK government has been hard at work securing new trade deals with countries around the world in an effort to maintain its position as a global trading powerhouse.
One major development in UK trade agreements has been the recently negotiated Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) with 11 countries in the Asia-Pacific region. This deal includes Japan, Canada, Australia, and New Zealand, among others, and is expected to boost the UK`s GDP by approximately 0.02%. It is also estimated to reduce tariffs on UK exports by up to £37m a year.
Another key trade agreement in the works is the UK-US Free Trade Agreement (FTA), which is currently in the negotiation phase. This potential agreement has been a top priority for the UK government and could generate significant economic benefits for both nations. The FTA is expected to increase UK-US trade by up to £15.3bn ($19.2bn) annually and create jobs on both sides of the Atlantic.
In addition to the CPTPP and the FTA, the UK has also recently signed new trade agreements with countries such as Norway, Iceland, Liechtenstein, and Switzerland. These deals will provide market access for UK businesses and maintain existing trade relationships with these important European partners.
It`s worth noting, however, that the UK`s departure from the EU has also resulted in the loss of existing trade agreements. For example, the UK is currently negotiating a new agreement with the EU to replace the previous terms of trade. Until such an agreement is reached, the UK will revert to trading with the EU on World Trade Organization (WTO) terms, which could result in tariffs and other trade barriers.
Overall, the UK`s pursuit of new trade agreements is a key aspect of its post-Brexit strategy. As the country navigates its new trading landscape, securing favorable terms with key partners around the world will be critical to maintaining its economic growth and competitiveness.
