Global Trade Live: The UK’s Free Trade Agreements
With the UK-India FTA signed in July 2025 but not yet in force, pending parliamentary approval, British exporters risk missing out on billions in reduced tariffs to one of the world's fastest-growing markets as implementation deadlines loom in 2026.
Key takeaways
- •The UK signed a major new FTA with India in July 2025 and updated its deal with South Korea in December 2025, while negotiations advance with Switzerland, the Gulf Cooperation Council, and others, expanding market access amid global trade shifts.
- •Recent deals like the Economic Prosperity Agreement with the US face uncertainty from new US tariff hikes announced in early 2026, potentially adding costs to British exports unless preferential terms hold.
- •Low utilisation rates of existing FTAs persist, meaning many businesses forfeit tariff savings due to complex rules of origin, while new agreements demand quick adaptation before full entry into force.
UK FTAs in Flux
The United Kingdom's post-Brexit trade landscape has accelerated in the past year, with several high-profile free trade agreements either signed or nearing completion as the government seeks to offset domestic economic pressures and global protectionism.
The landmark UK-India Comprehensive Economic and Trade Agreement, signed in July 2025, promises to eliminate tariffs on 99% of UK exports to India and cut them on 90% of Indian goods entering the UK, potentially boosting bilateral trade worth nearly £39 billion. Laid before Parliament in January 2026, the deal awaits debate and implementing legislation, with entry into force expected sometime in 2026—meaning businesses must prepare rules-of-origin compliance now to claim preferences once active.
An updated agreement with South Korea, concluded in December 2025, locks in continuity and enhancements to the rollover deal from EU days, averting expiry of key provisions in early 2026 and supporting sectors like automotive and services.
Negotiations continue on an enhanced deal with Switzerland, the UK's tenth-largest trading partner with £49 billion in annual trade; the ninth round wrapped in January 2026, aiming to modernise a goods-focused 2019 agreement. Talks with the Gulf Cooperation Council and Turkey also progress, while the UK's CPTPP membership, effective since December 2024, provides established access to Pacific markets.
Tensions arise from external shocks: US President Trump's February 2026 announcement of 15% global tariffs threatens British exporters unless the 2025 Economic Prosperity Deal preserves preferences, prompting urgent talks. This comes against a backdrop of incomplete implementation for recent pacts and longstanding underuse of FTAs—often below 50% eligibility—due to administrative burdens and origin rules.
Non-obvious trade-offs include balancing deeper ties with India against sensitivities in sectors like whisky and autos, while US frictions highlight risks of over-reliance on any single partner amid rising protectionism. Inaction on utilisation leaves money on the table: unclaimed preferences equate to higher costs and lost competitiveness for UK firms already squeezed by supply-chain disruptions.
Sources
- https://www.export.org.uk/events/global-trade-live-the-uk-s-free-trade-agreements
- https://commonslibrary.parliament.uk/research-briefings/cbp-9314
- https://www.gov.uk/government/news/enhanced-free-trade-agreement-with-switzerland-round-update
- https://en.wikipedia.org/wiki/Free_trade_agreements_of_the_United_Kingdom
- https://www.gov.uk/government/news/uk-to-join-cptpp-by-15-december
- https://www.theguardian.com/us-news/2026/feb/22/uk-in-talks-with-us-over-best-possible-deal-for-british-firms-amid-higher-tariffs-threat-trump