Britain’s Trade Deals with Those out of EU
With a no-deal Brexit becoming more likely as the deadline draws nearer, the UK will have to look further afield from their EU counterparts to negotiate trade deals. This is because under a no-deal Brexit, UK businesses would suddenly lose tariff free trade with EU countries, with trade instead operating under the World Trade Organisation (WTO) rules.
The UK wants to replicate the trade agreements the EU has with non-EU states as closely as possible to guarantee as much continuity for businesses in the event of a no-deal Brexit. If the UK does leave on 31st October, the UK will be free to negotiate and sign trade deals with the USA and other countries that the EU does not currently have trade agreements with. However, the UK will also have to negotiate a free trade deal with the EU to ensure tariff free access to its market.
So what trade agreements have been reached so far?
When – 22nd August 2019
Why - Last year, total trade between the UK and South Korea was worth £14.6billion. This agreement is roughly the same as the existing Korea-EU deal.
Central American Nations
When- 18th July 2019
Why- Last year, the trade deal between the UK and Central America was worth £1billion. This agreement will allow UK consumers to continue to benefit from lower prices on imported goods, such as prawns and fruit.
When- 15th May 2019
Why – Last year, the trade between Columbia, Chile and Peru was worth £2.1billion, therefore an important trade link to continue.
Norway and Iceland
When- 2nd April 2019
Why- The deal was worth just under £32billion in 2017. The UK will benefit from lower import costs for the likes of aluminium and some fuel and oil goods.
When- 22nd March 2019
Why- This agreement covers 12 countries, who export rum, bananas and sugar canes. The trade agreement was worth around 2.5billion in 2017.
When- 14th March 2019
Why- This deal will gradually remove around 80% of tariffs on exports to these countries and maintain access to goods like fish and sugar. The deal between the UK and this region is worth £369million.
When- 18th February 2019
Why – The deal could save the UK vehicle industry up to £9million per year in tariff charges. Last year, the deal between the UK and Israel was worth up to £3.9billion.
When- 11th February 2019
Why- The trade deal between Switzerland and the UK was worth £32.1billion in 2017, accounting for 2.5% of total UK trade. Without the deal, the UK motor industry could have faced up to £8million in tariff charges, while aluminium exporters could have faced up to £4million in charges.
Eastern and Southern Africa
When- 31st January 2019
Why- Meat and fish are the main goods imported from the region to the UK. The trade deal was worth £1.5billion in 2017.
When- 30th January 2019
Why- This deal will help protect parts of the UK’s wine industry. Chile also provides a strong import of fruit and nuts. Trade between the UK and Chile was worth £1.8billion in 2017.
Robert McConnell, Pinnacle Professional