Trade agreements
As of 1 January 2021, EU trade agreements no longer apply to the UK.
The UK has sought to reproduce the effects of trading agreements that previously applied to it to ensure continuity for UK business.
Trade agreements that took effect from 1 January 2021
Agreements with the following countries and trading blocs took effect from 1 January 2021. Where the agreement has not yet been ratified, provisional application or bridging mechanisms have been put in place to ensure continuity of trade.
| Agreement | Country | Entry into effect mechanism (1) | Total UK trade with countries, 2019 (£ million) (2) |
|---|---|---|---|
| Andean countries | Colombia | Bridging mechanism | 2,507 (total for Andean countries) |
| Andean countries | Ecuador | Full ratification | 2,507 (total for Andean countries) |
| Andean countries | Peru | Full ratification | 2,507 (total for Andean countries) |
| Cameroon (Agreement in principle) | Cameroon | Bridging mechanism | 177 |
| CARIFORUM trade bloc | Antigua and Barbuda | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Barbados | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | St. Kitts and Nevis | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Belize | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Bahamas | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Saint Lucia | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Dominica | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Dominican Republic | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Grenada | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Jamaica | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | St. Vincent and the Grenadines | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | Trinidad and Tobago | Bridging mechanism | 3,116 (total for CARIFORUM trade bloc) |
| CARIFORUM trade bloc | The Republic of Guyana | Provisional application | 3,116 (total for CARIFORUM trade bloc) |
| Central America | Costa Rica | Full ratification | 1,314 (total for Central America) |
| Central America | El Salvador | Full ratification | 1,314 (total for Central America) |
| Central America | Guatemala | Full ratification | 1,314 (total for Central America) |
| Central America | Honduras | Full ratification | 1,314 (total for Central America) |
| Central America | Nicaragua | Full ratification | 1,314 (total for Central America) |
| Central America | Panama | Full ratification | 1,314 (total for Central America) |
| Chile | Chile | Full ratification | 2,098 |
| Côte d’Ivoire | Côte d’Ivoire | Full ratification | 488 |
| Eastern and Southern Africa (ESA) trade bloc | Mauritius | Full ratification | 1,560 (total for Eastern and Southern Africa trade bloc) |
| Eastern and Southern Africa (ESA) trade bloc | Seychelles | Full ratification | 1,560 (total for Eastern and Southern Africa trade bloc) |
| Eastern and Southern Africa (ESA) trade bloc | Zimbabwe | Full ratification | 1,560 (total for Eastern and Southern Africa trade bloc) |
| Egypt | Egypt | Full ratification | 3,331 |
| Faroe Islands | Faroe Islands | Full ratification | 282 |
| Georgia | Georgia | Full ratification | 174 |
| Iceland and Norway | Iceland | Provisional application | 26,975 (total for Iceland and Norway) |
| Iceland and Norway | Norway | Provisional application | 26,975 (total for Iceland and Norway) |
| Israel | Israel | Full ratification | 5,059 |
| Japan | Japan | Full ratification | 29,182 |
| Kenya (3) | Kenya | Bridging mechanism | 1,369 |
| Kosovo | Kosovo | Full ratification | 10 |
| Lebanon | Lebanon | Full ratification | 829 |
| Liechtenstein | Liechtenstein | Full ratification | 83 |
| Moldova | Moldova | Provisional application | 254 |
| Morocco | Morocco | Provisional application | 2,120 |
| North Macedonia | North Macedonia | Provisional application | 1,770 |
| Pacific states | Fiji | Provisional application | 273 (total for Pacific States) |
| Pacific states | Papua New Guinea | Provisional application | 273 (total for Pacific States) |
| Pacific states | Samoa (4) | Bridging mechanism | 273 (total for Pacific States) |
| Pacific states | Solomon Islands (4) | Bridging mechanism | 273 (total for Pacific States) |
| Palestinian Authority | Palestinian Authority | Full ratification | 7 |
| Singapore | Singapore | Full ratification | 17,028 |
| South Korea | South Korea | Full ratification | 11,940 |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | Botswana | Full ratification | 10,788 (total for SACUM trade bloc) |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | Eswatini | Full ratification | 10,788 (total for SACUM trade bloc) |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | Lesotho | Full ratification | 10,788 (total for SACUM trade bloc) |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | Mozambique | Full ratification | 10,788 (total for SACUM trade bloc) |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | Namibia | Full ratification | 10,788 (total for SACUM trade bloc) |
| Southern Africa Customs Union and Mozambique (SACUM) trade bloc | South Africa | Full ratification | 10,788 (total for SACUM trade bloc) |
| Switzerland | Switzerland | Full ratification | 37,147 |
| Tunisia | Tunisia | Full ratification | 651 |
| Turkey | Turkey | Provisional application | 19,386 |
| Ukraine | Ukraine | Full ratification | 1,633 |
| Vietnam | Vietnam | Provisional application | 5,822 |
Notes
1) Provisional application is a method well established in international treaty practice to bring agreements into effect ahead of entry into force. Bridging mechanisms are an alternative means to ensure continuity of trade, where the UK or treaty partners are unable to fully ratify or provisionally apply an agreement. These non-binding mechanisms include Memoranda of Understanding or Exchange of Diplomatic Notes and ensure continuity of trade.
2) Source of trade statistics: ONS UK total trade: all countries, non-seasonally adjusted July to September 2020.
3) This agreement is open to accession by other members of East African Community.
4) Samoa and the Solomon Islands have not yet acceded to the Pacific States-UK Interim Economic Partnership Agreement (pending a decision on their accession), however preferences under the agreement took effect on 1 January 2021 through a Memorandum of Understanding.
Signed trade agreements, not fully in effect
There are some trade agreements the UK has signed which are partially applied or have not fully taken effect yet.
| Agreement | Information on entry into effect |
|---|---|
| Albania | Expected to enter into effect in early 2021. Trade takes place under WTO terms. |
| Canada | Expected to enter into effect in early 2021. Preferential tariff rates are being applied. |
| Jordan | Expected to enter into effect in early 2021. Trade takes place under the Generalised Scheme of Preferences for imports and under WTO terms for UK exports. |
| Mexico (1) | Expected to enter into effect in early 2021. Preferential tariff rates are being applied. |
Notes
(1) The UK has committed to apply preferential tariff rates on goods imported into the UK from Mexico from 1 January 2021. In return, Mexico has committed to implement a tariff rebate scheme, so that as soon as the Trade Continuity Agreement enters into force in Mexico, any businesses that have paid tariffs on goods which would attract a preference under the agreement, between 1 January and the agreement coming into force will be able to get a refund.
Trade agreements still in discussion
The following agreements are still under discussion with countries where trading agreements were in place before 1 January 2021.
For these countries:
- the government has put in place the UK global tariff
- trade with other WTO members is taking place on WTO terms
- trade with eligible developing countries is taking place under the UK’s Generalised Scheme of Preferences
| Country or bloc | Status of discussions |
|---|---|
| Algeria (1) | Engagement ongoing, agreement is not yet in place. Trade takes place under the Generalised Scheme of Preferences for imports. UK exports will be subject to partner country national legislation. |
| Bosnia and Herzegovina (1) | Engagement ongoing, agreement is not yet in place. Trade takes place under WTO terms for imports. UK exports will be subject to partner country national legislation |
| Ghana | Engagement ongoing, agreement is not yet in place. Agreement expected to be completed shortly (2). Trade takes place under Generalised Scheme of Preferences for imports and under WTO terms for UK exports. |
| Montenegro | Engagement ongoing, agreement is not yet in place. Trade takes place under WTO terms. |
| Serbia (1) | Engagement ongoing, agreement is not yet in place. Trade takes place under WTO terms for imports. UK exports will be subject to partner country national legislation. |
Note
(1) Algeria, Bosnia and Herzegovina and Serbia are not members of the World Trade Organisation.
(2) On 31 December 2020 the UK and Ghana issued a joint statement. This announced that both sides had reached a consensus on the major elements of a trade agreement. Both sides are committed to making the gap in preferences as short as possible.
Trading with countries in Customs Unions with the EU
Andorra and San Marino are part of customs unions with the EU. The UK has agreed with the EU that all products originating in San Marino and all non-agricultural products (chapters 25-97) originating in Andorra are to be treated as originating in the EU under the UK-EU Trade and Cooperation Agreement as long as Andorra and San Marino apply to UK products the same preferences that the EU applies to them. These products benefit from zero tariffs, where they meet the relevant rules of origin. Trade with Andorra of agricultural products (chapters 01-24) is not in scope of the UK-EU Trade and Cooperation Agreement and takes place under WTO terms.
Mutual recognition agreements
A mutual recognition agreement (MRA) is one in which countries recognise the results of one another’s conformity assessments.
A conformity assessment is a set of processes that confirm whether a product meets the specified legal requirements. This can include testing, inspection, and certification.
The UK has signed MRAs with:
MRA coverage in trade agreements
The UK’s trade agreement with Switzerland incorporates elements of the EU-Switzerland MRA.
The UK’s trade agreement with Israel covers conformity assessment of industrial products. This means that existing arrangements with Israel remain in place.
The UK-Japan CEPA replicates the effects of the existing EU-Japan MRA.
More information
Check:
Find out:
- how you trade with a country if there is no trade agreement in place following the transition period
- about EU free trade agreements in which the UK currently participates
- about EU mutual recognition agreements in which the UK currently participates
- about international agreements with non-EU countries during the transition period
- about bridging mechanisms and provisional applications (PDF, 93.5KB, 3 pages)
- about the notice of fulfilment from the United Kingdom on cumulation with trading partners: December 2020
Published 29 January 2020
Last updated 12 February 2021 + show all updates
Source: Department for International Trade
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