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.

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 which will ensure continuity of trade.

2) Source of trade statistics: ONS UK total trade: all countries, non-seasonally adjusted April to June 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 will take 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.

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

Note

(1) Algeria, Bosnia and Herzegovina and Serbia are not members of the World Trade Organisation. UK exports will be subject to partner country national legislation.

(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 will 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 will 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 will revert to 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:

• Australia
• New Zealand
• United States of America

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 will continue after 31 December 2020.

The UK-Japan CEPA replicates the effects of the existing EU-Japan MRA.

More information

Check:

• duties and customs procedures for exporting goods
• tariffs, taxes and rules to trade with the UK

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