The United Kingdom (UK) has been an economic powerhouse for centuries and has continued its tradition of forging trade agreements to boost its economy. As of January 2021, the UK has left the European Union (EU), which has necessitated the need for new trade agreements. In this article, we will take a look at the current trade agreements that the UK has in place.

Trade agreements with the EU

While the UK has left the EU, it is worth noting that it still has a free trade agreement with the EU. The agreement, known as the Trade and Cooperation Agreement (TCA), was finalized on December 24, 2020, and sets the terms for the UK`s relationship with the EU in areas such as trade, security, and law enforcement. The TCA ensures that there are no tariffs or quotas on goods traded between the UK and the EU, and it also sets out rules for how products must comply with standards and regulations.

Trade agreements with non-EU countries

The UK has also been busy forging trade agreements with non-EU countries. Here are some of the key trade agreements that the UK currently has in place:

1. Japan

In October 2020, the UK signed a trade agreement with Japan, which is the UK`s first major post-Brexit trade deal. The agreement is expected to increase trade between the two countries by £15.2 billion ($19.9 billion) and covers areas such as digital trade, financial services, and food and drink.

2. Canada

In November 2020, the UK signed a trade agreement with Canada that replicates the terms of the Canada-European Union Comprehensive Economic and Trade Agreement (CETA). The agreement ensures that there are no tariffs on 98% of products traded between the UK and Canada.

3. Singapore

The UK-Singapore Free Trade Agreement was signed on December 10, 2020, and is the UK`s first trade agreement with an Association of Southeast Asian Nations (ASEAN) member. The agreement covers areas such as trade in goods and services, investment, intellectual property, and government procurement.

4. Mexico

The UK-Mexico trade agreement was signed on December 15, 2020, and is expected to increase trade between the two countries by £1.5 billion ($1.9 billion). The agreement ensures that there are no tariffs on 63% of UK exports to Mexico and 82% of Mexican exports to the UK.

Conclusion

In conclusion, the UK has been busy forging trade agreements both with the EU and non-EU countries. The TCA ensures that the UK still has a free trade agreement with the EU, while agreements with non-EU countries such as Japan, Canada, Singapore, and Mexico are expected to boost the UK`s economy. The UK is also in talks with other countries such as Australia and New Zealand to forge new trade agreements. It remains to be seen how these trade agreements will impact the UK`s economy in the long run.

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