Uk Major Trade Agreements
The United Kingdom has always been a global economic player, thanks to its strong trading partnerships and agreements with other countries. These agreements have been instrumental in promoting global economic growth, as well as ensuring that the UK maintains its position as a leading business hub.
In light of the current economic climate, it is essential to understand the significance of the UK’s major trade agreements. In this article, we will take a closer look at some of the UK’s top trade agreements that make a significant impact on its economy.
1. European Union (EU)
The EU currently stands as the UK’s most significant trading partner, accounting for around 43% of the country’s exports and 51% of imports. The UK’s membership in the EU also meant that it enjoyed significant benefits in terms of open access to a large market, free movement of goods and services, common standards, and more.
However, following Brexit, the UK has left the EU and is currently negotiating new terms for its future economic relationship with the bloc.
2. United States of America (USA)
The USA is the UK’s second-largest trading partner, accounting for around 17% of total exports and 11% of imports. The UK’s close relationship with the USA is further strengthened by the two countries’ shared language, culture, and values.
In 2020, the UK and the USA signed a Mutual Recognition Agreement that allowed for the seamless trade of products between the two countries. This agreement will enable businesses to continue to operate smoothly and effectively, even post-Brexit.
The UK has a strong trading relationship with Japan, with the island nation accounting for around 2.4% of the country’s exports. In 2020, the UK and Japan signed a historic trade deal, marking the first major post-Brexit agreement.
This agreement will significantly benefit the UK’s automobile, technology, and agriculture sectors, as it eliminates tariffs on a wide range of goods traded between the two countries.
Canada is the UK’s fourth-largest trading partner, accounting for around 1.6% of total exports. The two countries share a strong relationship through their membership in the Commonwealth and a shared history and language.
In 2019, the UK and Canada signed a provisional agreement to continue trading without disruption following Brexit. The agreement immediately eliminated tariffs on 98% of Canadian exports to the UK, giving a significant boost to the country’s economy.
5. South Korea
South Korea is the UK’s sixth-largest trading partner outside the EU, accounting for around 1.3% of total exports. The UK-South Korea Free Trade Agreement came into force in 2019, eliminating tariffs on a wide range of goods and services traded between the two countries.
This agreement has significantly benefited the UK’s automotive, pharmaceutical, and financial service sectors.
In conclusion, the UK’s major trade agreements play a crucial role in shaping its economy and maintaining its position as a global trade hub. As the country continues to navigate Brexit and the pandemic, these agreements will be essential in promoting economic growth and stability both domestically and internationally.