In addition to agreeing a future trade deal with the EU, the UK has also secured continued trade arrangements and preferential access to key markets around the world. Where there are no agreements in place, goods can be traded under WTO rules.
The priorities for members across our sectors in future trade agreements are regulatory alignment, tariff free access and customs agreements to facilitate as frictionless trade as possible.
The UK Government has worked with key international partners to ensure Bilateral Aviation Safety Agreements (BASAs) and/ or working arrangements are in place now the UK has left the EU. Information on BASAs with the USA, Brazil and Canada and Working Arrangements agreed with Japan can be found on the CAA website.
UK Global Tariff (UKGT)
The UK now has its own tariff schedule, which replaces the EU Common External Tariff. The UK Global Tariff will apply to all goods imported into the UK from 1 January 2021 unless an exception applies.
Exceptions can include:
- an arrangement under the Generalised System of Preference
- a trade arrangement between the UK and another country
- a tariff suspension of relief in place
Businesses can check tariff lines using the Check UK trade tariffs from 1 January 2021 tool.
UK Continuity trade agreements with non-EU countries
As of 1 January 2021, EU third country trade agreements no longer apply to the UK. The UK has sought to replicate effects of previous trading agreements to provide continuity for UK business.
gov.uk continue to update their webpages detailing agreements that the UK has concluded, that are in effect and the progress of discussions with other countries.
Agreements with the following countries and trading blocs took effect from 1 January 2021
- Andean countries
- CARIFORUM trade bloc
- Central America
- Côte d’Ivoire
- Eastern and Southern Africa (ESA) trade bloc
- Faroe Islands
- Iceland and Norway
- North Macedonia
- Pacific states
- Palestinian Authority
- South Korea
- South African Customs Union and Mozambique (SACUM) trade bloc
Signed Trade agreements and ongoing discussions
The UK has a number of agreements that are still under discussion, as well as some trade agreements which are partially applied or have not yet fully taken effect.
Following the conclusion of talks with Canada an agreement is expected to enter into effect in early 2021 with preferential tariff rates will be applied from 1 January 2021.
Similarly, continuity agreements have been reached with both Jordan and Mexico both of which are expected to enter into effect in early 2021 with Jordan using the WTO GSP and Mexico applying preferential tariffs from 1 January 2021.
The UK and Turkey signed a trade deal that will support its trading relationship and has committed to working towards a more ambitious trade agreement in the future.
For countries in the EU Customs Union, the UK has agreed with the EU that all products originating in San Marino and all non-agricultural products originating in Andorra will be treated as originating in the EU under the UK-EU Trade and Cooperation Agreement.
There are a number of agreements that are still under discussion with countries where trading agreements were in place before 1 January 2021, for these countries trade can take place:
Mutual recognition agreements and Future Trade Deals
These are also the countries that the UK has launched negotiations for new free trade agreements with, which are currently in various stages of discussion:
The UK-US trade negotiations concluded the fifth round of negotiations in October.
As there has been a change in US Presidency since then, we are currently waiting for new USTR team to be fully in place, with 15 appointments made last week and things moving swiftly. The US Trade Representative needs to be formally appointed following recommendations that have been made before any further talks can commence.
The third round of the UK-Australia negotiations took place at the end of 2020 with progress made on digital trade and customs. Round four is due to commence soon and will run through until the end of March focusing mostly on services.
Round three of trade negotiations between the UK-New Zealand concluded on 8 February 2021 and so all of the issues are very much live and awaiting formal read out. Initial Goods Market Access offers have been made by UK which is a positive milestone.
On Monday 1 February, the UK submitted a notification of intent letter to begin the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) accession process.
The UK will set out public negotiation objectives in the next couple of months, which will be followed by an accession working group with all the countries which will lead onto negotiations. There are no timescales attached to this as bi-lateral negotiations with partner countries could take as much time as needed.