Free Trade Agreements of The UK: A Comprehensive Overview
The United Kingdom, as a major and influential player in the global economic arena, has signed several free trade agreements (FTAs) with many countries and blocs across the world. These free trade agreements play a significant role in facilitating trade and commerce, increasing cross-border investments, and boosting economic growth.
In this article, we’re going to provide a comprehensive overview of the free trade agreements of the UK. We’ll discuss what FTAs are, their importance to the UK economy, and the main free trade agreements that the UK has signed with different countries.
What Are Free Trade Agreements?
Free trade agreements are binding agreements between two or more countries to eliminate or reduce tariffs, quotas, and other trade barriers on goods and services exchanged between them. FTAs are focused on creating a level playing field for trade and commerce, increasing market access, and promoting economic growth.
Benefits of Free Trade Agreements to the UK
Free trade agreements have many benefits for the UK economy, including:
1. Access to new markets – FTAs provide the UK with access to new markets, which can help boost the sales of UK goods and services abroad.
2. Increased competition – FTAs can increase competition, which helps to drive innovation and encourages businesses to be more productive.
3. Reduced costs – FTAs can help reduce the cost of imports, which can help businesses save money on the cost of raw materials and other inputs.
4. Job creation – FTAs can help create new jobs by facilitating the export of UK goods and services to new markets.
5. Increased investment – FTAs can help attract foreign investment to the UK, which can help to create jobs and boost economic growth.
FTAs Signed by the UK
Here are the main free trade agreements that the UK has signed:
1. UK-USA Free Trade Agreement – This agreement aims to strengthen trade ties between the UK and the USA. The agreement covers areas such as digital trade, financial services, and agriculture.
2. UK-Japan Free Trade Agreement – This was the UK`s first post-Brexit trade deal and is set to increase trade between the two countries. It covers areas such as digital trade, food and drink, and financial services.
3. UK-Switzerland Free Trade Agreement – This agreement covers areas such as customs, tariffs, and non-tariff barriers. It also aims to deepen the UK`s relationship with Switzerland.
4. UK-Canada Free Trade Agreement – This agreement aims to increase trade and investment between the UK and Canada. It covers areas such as intellectual property, government procurement, and regulatory cooperation.
5. UK-Singapore Free Trade Agreement – This FTA covers areas such as financial services, telecommunications, and digital trade. It also aims to increase the flow of goods and services between the two countries.
Free trade agreements are vital to the UK`s future economic growth and stability. They provide the UK with access to new markets, increase competition, reduce costs, and create jobs. As we’ve seen, the UK has signed several free trade agreements with many countries, covering various sectors such as digital trade, financial services, and agriculture.
With the UK’s exit from the European Union, the country has been searching for new markets and partnerships. These FTAs are a significant step in that direction and are expected to provide a boost to the UK economy.