The UK is in the process of transitioning existing trade agreements which the UK participates in as a member of the EU. This note sets out the status of those agreements that may not be in place if the UK leaves the EU with no deal.

Leaving the EU with a deal remains the government’s top priority. This has not changed. While a number of these continuity agreements are likely to be concluded, it is the duty of government to produce a highly cautious list of those that may not be in place so that businesses and individuals can prepare for every eventuality.

It remains the government’s priority to conclude trade continuity agreements with these countries when the UK leaves the EU or as soon as possible thereafter. The government is exploring a range of options to ensure continuity of effect for trade agreements if an agreement has not been ratified and brought into force in time.

The government is seeking continuity for existing EU trade agreements which the UK participates in as a member of the EU. These agreements constitute around 11% of the UK’s trade.¹ These agreements also cover a wide variety of relationships, including:

• free trade agreements (FTAs)
• economic partnership agreements (EPAs) with developing nations
• association agreements - these cover broader economic and political co-operation
• trade agreements with countries that are closely aligned with the EU
• mutual recognition agreements (MRAs) - parties mutually recognise conformity assessment procedures

Businesses in the UK and partner countries are eligible for a range of preferential market access opportunities under the terms of these agreements. These can include, but are not limited to:

• preferential duties for goods, including reductions in import tariff rates and quotas for reduced or nil rates of payable duties
• quotas for the import of goods with more relaxed rules of origin requirements
• enhanced market access for service providers
• protection from discrimination in public procurement opportunities across a range of sectors
• allowing parties to mutually recognise conformity assessment procedures
• the ability to complete mandatory inspections and tests on products close to the place of production
• common standards on intellectual property

Signed UK trade agreements

The UK has signed a number of trade agreements with non-EU countries.

Changes if the UK leaves the EU with no deal

In the event of a no-deal EU Exit, EU trade agreements will cease to apply to the UK when it leaves the EU. Without arrangements to maintain preferences, trade will take place on World Trade Organization (WTO) terms.

The UK is working with partner countries to bring into force bilateral agreements that will ensure continuity for the effects of existing EU trade agreements. But all of these replacement agreements may not be ready in time if the UK leaves the EU with no deal.

You can find below details of countries concerned together with the status of discussions:

a) Trade agreements

b) Agreements with countries that are closely aligned with the EU

c) Mutual recognition agreements

Note: All the agreements listed in the tables above are currently in force. Those not currently in force will be detailed in a further technical notice or stipulated in the footnotes.

These pages will be regularly updated according to new information about any other countries as and when we have finalised replacement agreements with them. Subscribe to this page to be notified when the progress of an agreement with a country or trading bloc changes.

Steps businesses need to take to prepare

Without arrangements to maintain preferences, trade will take place on World Trade Organisation (WTO) terms. This may affect your ability to trade in the following ways:

For imports into the UK

In the event of a no-deal EU Exit, the government will determine and publish a new applied UK ‘most-favoured-nation’ (MFN) tariff schedule before the UK leaves the EU. Information on the current tariff rates are available in the UK’s applied goods schedule and can be found on the UK Trade Tariff tool.

For exports from the UK

Duties applied to exports from the UK will vary by country. Many countries provide duty free treatment for all countries (so-called MFN duty-free treatment) on a significant amount of their imports. But where their imports are dutiable, without an arrangement in place to maintain preferences, traders would pay the non-preferential tariff rate applied in the country of import. The EU holds data on the current applied preferential rates and the non-preferential MFN rates.

For services trade outbound from the UK

Access to other countries’ markets for UK services and service providers would take place under the terms set out in the domestic legislation of the host country, regulatory arrangements outside the scope of FTAs and on the basis of the specific commitments they apply to all WTO members.

The specific commitments that WTO members apply to trading partners, independently of any EU trade agreements, are set out in each member’s schedule of commitments under the WTO General Agreement on Trade in Services (GATS).

Some countries have liberalised their domestic services markets beyond these specific commitments, but this is not reflected in their schedules. Users should also be aware that some EU trade agreements reflect extra opportunities for services trade given by partners unilaterally.

Public procurement

Some EU trade agreements offer UK businesses legal protection from discrimination in public procurement. If these deals are not transitioned, you may lose the right to legal remedy in the third country in the event your bid is discriminated against on the basis of nationality.

If you currently bid for public procurement opportunities in any of the countries listed and are concerned, you should check the EU agreement to find out how your rights may change if they are not in place. In some cases, the absence of a deal could restrict access to public procurement contracts in that particular country.

The WTO Government Procurement Agreement (GPA) also offers UK businesses legal protection from discrimination in public procurement in parties to the GPA and the government is working to ensure continuity of the UK’s participation in the GPA in both scenarios of a deal and no deal with the EU.

The WTO GPA covers 19 trading partners. If there is a specific contract opportunity you have concerns about, please contact us using the details at the foot of this note.

Investment

Some EU trade agreements include provisions to promote, protect and liberalise investment. Without an agreement in place, those provisions may no longer apply to the UK. The EU trade agreement which covers the country that businesses trade with will set this out if so.

You should consult this, and their advisers, if relevant.

Mutual recognition for conformity assessments

Some EU trade agreements include mutual recognition for conformity assessments conducted by each trading partner. Without an agreement in place, you may not be able to use UK conformity assessment bodies to certify that their product meets partner countries’ regulations.

You should consult the agreement if you think your product will be affected and make arrangements for alternative conformity assessments.

Other trade preferences for imports to the UK

The UK’s trade relationships are not just determined by trade agreements; we also participate in the EU’s Generalised Scheme of Preferences (GSP), which allows developing countries, including least developed countries (LDCs) and low to lower-middle income countries, to receive preferential access to the UK market. The government fully intends to continue the existing market access provided by these unilateral preference schemes.

To do so we have taken the necessary powers through the Taxation (Cross-border Trade) Act 2018 to allow us to continue providing non-reciprocal reductions in tariffs to developing countries. Through this, the current beneficiaries of the EU’s GSP will be able to export to the UK after EU exit on the same terms as at present. We will shortly be laying the necessary secondary legislation in Parliament.

This means that some countries will continue to be eligible for preferential tariff treatment under the UK’s newly established independent trade preferences scheme even if the relevant EU-partner country trade agreement has not yet been transitioned into a UK-partner country agreement.

Further information