Which Countries Has the UK Agreed Trade Deals With?
In this article
As the UK is no longer part of the EU Member States, the government has dealt with several
other countries. The British government is doing so to ensure continuous trade with other
countries and build a central financial center. Since the trade agreement of the EU does
not involve the UK anymore from 1 January 2021, the state needed to ensure that the UK
businesses would keep running regardless.
Nevertheless, it is crucial to study how these trades are done and identify the countries
that have agreed to the UK trade deals.
The Impact of Brexit on the UK
To ensure a smooth economic flow, the UK needed to have a stand-alone financial center
based on the country's values. The financial services authorities provide more jobs that
cut across several regions and tax collection to improve public services.
Post-Brexit Implication on UK Citizens
When the UK was still a part of the EU, its citizens enjoyed free movement within Europe.
But, in January 2020, the UK pulled out of the EU with a transition period of 11 months.
As a result, UK citizens no longer enjoy some of the benefits it was entitled to when it
was still a part of the European Union.
However, UK citizens can still enjoy visa-free travel to any EU country provided it is a
short-term visit.
With the introduction of the ETIAS which will be effective from 2022, British citizens
can visit any European country without a visa. All they will need is an
ETIAS application which can be processed online
without having to visit any embassy.
The ETIAS visa authorization is valid for three years and can allow its
holders to stay in the Schengen zone for a maximum of 90 days per visit.
The UK is also
planning on introducing its own visa waiver program, the UK Electronic Travel Authorization
(ETA) which is projected to be fully functional by 2025.
Countries that the UK Has Made Deals With
After leaving the EU Member States, UK trade deals have been ratified in most countries.
The UK has made deals with some countries like Turkey, Singapore, and Vietnam, but they
have not been authorized.
The ratified or successful UK trade deals are:
- Ecuador
- Faroe Islands
- Georgia
- Israel
- Japan
- Kosovo
- Liechtenstein
- Moldova
- Morocco
- Palestinian
- Costa Rica
- Guatemala
- El Salvador
- Honduras
- Chile
- Panama
- Côte d'Ivoire
- Eastern and Southern Africa trade
- Palestinian Authority
- Nicaragua
- South Korea
- Switzerland
- Southern Africa Customs Union and Mozambique trade bloc
- Tunisia
- Ukraine
Countries that the UK has yet to deal with will operate on bridge mechanisms, provide
provisional applications, and ensure trade continuity.
The UK and Canada Agree in Provisional Trade Deal
Since a complete UI trade deal has not been implemented, and a provisional trade
deal ensures neither of the countries will partake of the Brexit negativity. The
UK government has also confirmed the provisional agreement as being legitimate.
This is evident in about $35bn good exchange that had taken place between the two
countries.
The Comprehensive Economic Partnership Agreement (CEPA) Between the UK and Japan
The UK breaking from the EU Member States countries
also means the ELIAS is not involved. The CEPA trade is valid enough to support the
large economies of the two countries continually. However, one of the non-evitable
post-Brexit effects is that many people assume Japan has more advantages.
The UK and Turkey Agree on Free Trade Deal
The UK Customs Union had initially formed an agreement with Turkey on trading coal,
steel, and agricultural products. Some improvements have been made to the trade
through the free trade deal.
The two countries can now trade services, agricultural goods, manufactured products,
and intellectual properties. This creates more bonds and has made the UK the
second-largest trading country with Turkey.
UK Trade Deals Signed with Mexico
The UK has made some deals with Mexico but has not yet come into effect, just as
Canada. Although the Trade Continuity
Agreement is on hold, every good imported into the UK from Mexico should have
preferential tariff rates.
If any business wants a tariff rebate due to high charges, the Mexican government
has signed the possibility with the UK.
Brazil and UK Signed the Financial Services Agreement
On 10 December 2020, Brazil and the UK signed an agreement to aid each other's
international trade. This collaboration between the two has also strengthened the
economic sector.
Financial opportunities such as investments, taxation, and sustainable growth from any
of the two countries can be accessed by the other. The agreement also sealed deliberates
and collaborative efforts to sustain the green environment.
Notes:
- A provisional application is a written agreement between countries, which providesinternational trading access before entering into force.
- Faroe Islands
- The bridging mechanism is an alternative that works when the provisional agreementis non-feasible or the UK trade deals have not been ratified.
- The non-binding mechanism includes the Exchange of Diplomatic Notes and Memorandaof Understanding.
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