UK's Free Trade Agreements: Current Status and Future Prospects

Since the United Kingdom (UK) joined the European Union (EU), all trade agreements have been negotiated through the EU. However, as the UK navigates the complex landscape of Brexit, the continuation and establishment of free trade agreements (FTAs) with third countries have become a pressing issue. This article explores the current status of UK FTAs, the challenges posed by Brexit, and the government's efforts to address these issues through legislative measures.

The Lack of UK FTAs Post-Brexit

Before Brexit, the UK had very little experience in independently negotiating FTAs. The last time the UK signed a free trade agreement was in 1861, and an attempt to negotiate such an agreement with the old Dominion countries in the early 20th century was unsuccessful. This historical lack of experience makes the current situation particularly challenging.

EU's Role in Trade Agreements

Other countries typically negotiate FTAs with the entire EU rather than the UK individually. When the UK’s membership of the EU expires on March 29, 2019, these existing FTAs will no longer apply to the UK. This situation has significant implications, as many of these agreements are deeply entrenched in EU trade policies.

EU Commission's Stance

The European Commission, acting as an agent for the member states, has confirmed that no trade deals negotiated on behalf of the EU will apply to the UK post-Brexit. In its supplementary negotiating guidelines from December 20, 2017, the Commission explicitly stated that 'from the date of its withdrawal from the Union, the United Kingdom will no longer benefit from the agreements concluded by the Union or by Member States acting on its behalf or by the Union and its Member States acting jointly.'

UK Government's Response and Legislative Measures

The UK government is well aware of these challenges and has introduced a trade bill to address the situation. The trade bill aims to provide the government with new powers to make regulations necessary to ensure continuity in UK trade arrangements as it leaves the EU. International Trade Secretary Liam Fox outlined the goals of the bill in a statement:

The Bill will create new powers to make regulations where required to ensure we can fully implement these free trade agreements and our other existing trade agreements as we leave the EU. By ensuring continuity in our existing trade arrangements, we will provide certainty and stability for workers, consumers, businesses, and our international trading partners.

Liam Fox emphasizes that the UK government is committed to maintaining stability and certainty in trade relations, especially during the critical 14 months leading up to the Brexit deadline.

Conclusion

The UK's journey towards securing new FTAs post-Brexit is fraught with challenges. However, with the introduction of the trade bill and the active involvement of the UK's international trade secretary, there is hope for a smoother transition. As the negotiations continue, it remains to be seen how the UK will successfully navigate the complex landscape of international trade to ensure the continuity and prosperity of its trading relationships.