This page is dedicated to UK trade policy, including the Free Trade Agreement (FTA) programme and upcoming sustainability regulations impacting trade. It displays our positions on FTA negotiations, guidance on signed FTAs, as well as trade and sustainability policy. Jonathan Reynolds, the Secretary of State for the Department for Business and Trade, announced that the government is committed to continue the FTA programme, including negotiations with the Gulf Cooperation Council, India, Israel, South Korea, Switzerland and Turkey.
We have put together a paper for FDF members that provides a comprehensive overview of the status of UK trade negotiations and concluded preferential trade agreements. It is regularly updated to reflect latest developments.
FDF's preferential trade tracker
We are continually engaging with government on the majority of trade negotiations, please see below a summary of feedback requests we need from members.
UK trade agreements in negotiation
Canada FTA: in force (paused)
Status: In March 2024, the UK and Canada paused negotiations. We still have access to the rollover agreement that came into force in 2021. We have lost access to extended cumulation of EU content and processing.
Trade with Canada: Exports to Canada in 2023 totalled £389.9 million, down 14.6% from 2022. Top products exported included chocolate, cheese and sweet biscuits. Imports from Canada totalled £654.3 million in 2023, down 11.2% from 2022. Top import products included wheat, cereal grains, and pulses.
Gulf Cooperation Council: live negotiations
Status: Negotiations with the GCC are at a late stage, with the majority of chapters closed under the previous government, these could be reopened but not confirmed yet. We expect a deal in principle soon.
Trade with the GCC: Exports to the GCC in 2023 totalled £811.1 million, down 6.8% from 2022. Top products exported included breakfast cereals, chocolate and sweet biscuits. Imports from the GCC totalled £51.2 million in 2023, up 24.3% from 2022. Top import products included oils, fruits, and pulses.
India: live negotiations
Status: Negotiations with India are at a late stage, with the majority of chapters closed under the previous government, these could be reopened but not confirmed yet. We expect a deal in principle soon.
Trade with India: Exports to India in 2023 totalled £256.2 million, down 18.9% from 2022. Top products exported included breakfast cereals, chocolate and spices. Imports from India totalled £837.6 million in 2023, up 6.4% from 2022. Top import products included brown rice, shellfish, and spices.
Israel FTA: in force and being renegotiated
Status: Negotiations are ongoing with Israel, the latest rounds have been postponed.
Trade with Israel: Exports to Israel in 2023 totalled £134.3 million, down 20.3% from 2022. Top products exported included chocolate, breakfast cereals and oats. Imports from Israel totalled £147.2 million in 2023, up 16.0% from 2022. Top import products included fruit, vegetables, and savoury snacks.
Mexico FTA: in force (paused)
Status: Negotiations were paused in early 2024 due to resourcing issues on the Mexican side. We still have access to the rollover agreement that came into force in 2021, which will remain in force until a new FTA is signed. The UK has secured an extension to EU cumulation rules with Mexico, meaning EU inputs will be considered of UK origin. This extension will last until the UK and Mexico update the rollover agreement.
Trade with Mexico: Exports to Mexico in 2023 totalled £134.3 million, down 20.3% from 2022. Top products exported included malt extracts, coffee and ice cream. Imports from Mexico totalled £186.8 million in 2023, up 24.3% from 2022. Top import products included vegetables, fruits, and vegetable oils.
South Korea FTA: in force but will be renegotiated
Status: The UK and South Korea are re-negotiating the rollover agreemnet which came into force in 2021. There have been two rounds so far. The UK has secured an extension to EU cumulation rules with South Korea, meaning EU inputs will be considered of UK origin. This extension is until 31 December 2025.
Trade with South Korea: Exports to South Korea in 2023 totalled £248.2million, down 2.3% from 2022. Top products exported included shellfish, pork and malt extracts. Imports from South Korea totalled £94.6 million in 2023, down 6.8% from 2022. Top import products included pasta, fish, and prepared fruit and vegetables.
Switzerland FTA: in force and being renegotiated
Status: The UK and Switzerland are re-negotiating the rollover agreement which came into force in 2021. The last round was in March 2024.
Trade with Switzerland: Exports to Switzerland in 2023 totalled £145.1 million, down 4.7% from 2022. Top products exported included wheat, cheese and breakfast cereals. Imports from Switzerland totalled £471.4 million in 2023, up 4.7% from 2022. Top import products included coffee, soft drinks, and chocolate.
Turkey FTA: in force but will be renegotiated
Status: The UK and Turkey are re-negotiating the rollover agreement which came into force in 2021. Negotiations were launched in March, with the first round of negotiations yet to take place.
Trade with Turkey: Exports to Turkey in 2023 totalled £236.2 million, down 20.3% from 2022. Top products exported included eggs, sauces and chocolate. Imports from Turkey totalled £763.7 million in 2023, up 24.3% from 2022. Top import products included fruits, fish, and confectionery.
Trade agreements in force/pending
Australia: in force
The UK and Australia signed a preferential trade agreement on 17 December 2021 and this entered into force on Wednesday 31 May 2023.
UK government has published guidance on this agreement and trade with Australia.
We produced a document for FDF members that sets out key provisions in this agreement.
CPTPP: pending
Status: The UK signed an agreement to join the Comprehensive and Progressive Agreement for Trans-Pacific partnership (CPTPP) on 16 July 2023.
Seven members of CPTPP have now ratified UK accession (Malaysia, Chile, Japan, New Zealand, Peru, Singapore, and Vietnam). As of December, the UK will be able to trade with these markets under CPTPP. The UK will not be able to trade under CPTPP to countries who have not yet ratified the UK accession until 60 days after they ratify.
FDF member guidance
FDF overview of key points in CPTPP
New trade opportunities in Malaysia
European Union: in force
The EU-UK Trade and Cooperation Agreement (TCA) is a free trade agreement between the UK and the European Union that was signed and published on 30 December 2020. The agreement entered into force on 1 January 2021.
We produced a paper for FDF members that sets out key points in this agreement for food and drink manufacturers.
FDF overview of key points in the TCA
With an upcoming TCA review, the FDF has put together a draft paper outlining priorities for the food and drink sector. Members can access this below, please send any views to George.hyde@fdf.org.uk
If you trade with the EU and want to avoid payment of tariffs, you need to ensure your goods comply with the TCA's rules of origin. These are the detailed terms and conditions that goods must meet to demonstrate the product’s ‘economic origin’ to allow it to be traded tariff-free.
We produced guidance for FDF members to help them in navigating the TCA rules of origin when exporting to or importing from the EU.
Japan: in force
The UK and Japan signed an updated preferential trade agreement on 23 October 2020 and this entered into force on 1 January 2021.
UK government has published a series of explainers on this agreement, including papers on:
We produced a document for FDF members that sets out key provisions in this agreement.
New Zealand: in force
The UK and New Zealand signed a preferential trade agreement on 28 February 2022 and this entered into force on Wednesday 31 May 2023.
UK government is has published sector-specific guidance on this agreement and trade with New Zealand.
We produced a document for FDF members that sets out key provisions in this agreement.
Developing Country Trading Scheme (DCTS): in force
The UK's new Developing Countries Trading Scheme (DCTS) entered into force at 00.01 on 19 June 2023, replacing the Generalised Scheme of Preferences (GSP).
This new scheme unilaterally provides preferential access into the UK market for imports originating from developing countries. With entry into force, the government published a selection of new guidance for businesses.
We produced guidance for FDF members that sets out the key provisions contained in the DCTS, focusing on:
- what this means for tariffs and rules of origin for imports from qualifying countries;
- the process by which products graduate out of the scheme to face the full UK Global Tariff as sectors in recipient countries become globally competitive; and
- revisions to the conditionality required by some countries to benefit from the provisions.
Guidance
Overview of Export support
Export support is available through DBT. FDF members can access an overview of the support below:
Export Finance can help your business export through:
- Export insurance policies
- Buyer finance
- Working capital products
FDF members can access more information below:
Defra Agri-food Attachés are in-market staff who's role is to broaden market access, break down barriers and drive export growth. If you think an Attaché can help you, please get in touch with us. FDF members can see the locations of the Attachés below:
UK and EU initiatives to deliver deforestation-free supply chains
In May 2023, the EU passed a regulation to establish deforestation-free supply chains which will apply to a range of commodities when imported into the EU. The EU Commission has proposed a 12 month delay to implementation, meaning it is likely the EUDR will come into effect from December 2025. Please see the latest guidance below:
The UK is developing its own policy, which aims to deliver the same outcomes but will place different requirements on businesses.
We produced a paper for FDF members that outlines the EU regulation and upcoming UK regulation proposal and summarises key points of difference.
UK and EU initiatives to tackle deforestation
The FDF will be running a webinar on 24 October, where we will be joined by Rambolls, looking at the impact of the EUDR. You can register below.
UK trade negotiations: a comprehensive overview of UK trade
This paper for FDF members provides a comprehensive overview of the status of UK trade negotiations and concluded preferential trade agreements. It is regularly updated to reflect latest developments and key announcements from the Department for Business and Trade (DBT) and includes links to:
- official information on negotiations including legal texts and announcements; and
- FDF position papers, explainers and guidance.
FDF's preferential trade tracker
We are continually engaging with government on the majority of trade negotitaions, please see below a summary of feedback requests we need from members.
Carbon Border Adjustment Mechanisms (CBAM): addressing carbon leakage
A UK CBAM will be introduced in January 2027.
The FDF have responded to the latest CBAM consultation that ended on 13 June 2024. This consultation focused on the scope of products, carbon measurement, documentation and administrative burdens, minimum thresholds, and penalties for non-compliance. Members can view a copy of our response below.
Key documents we have published to help FDF members are:
FDF response to CBAM consultation
Developing Countries Trading Scheme (DCTS) enters into force
The UK's new Developing Countries Trading Scheme (DCTS) entered into force at 00.01 on 19 June 2023, replacing the Generalised Scheme of Preferences (GSP).
This new scheme unilaterally provides preferential access into the UK market for imports originating from developing countries. With entry into force, the government published a selection of new guidance for businesses.
We produced guidance for FDF members that sets out the key provisions contained in the DCTS, focusing on:
- what this means for tariffs and rules of origin for imports from qualifying countries;
- the process by which products graduate out of the scheme to face the full UK Global Tariff as sectors in recipient countries become globally competitive; and
- revisions to the conditionality required by some countries to benefit from the provisions.
Understanding the parliamentary process for new FTAs
When the UK concludes a new or updated trade agreement, a complicated process then follows in Parliament to ratify the agremeent and enable its entry into force. This process varies depending on the scope of the deal and will take longer where new primary legislation is required.
We produced guidance for FDF members that details the required steps and includes examples of what will be required to finalise the UK's new FTAs with Australia and New Zealand to enable implementation in 2023.
How to report trade barriers to government
The Department for Business and Trade (DBT) has a report a trade barrier service which is a useful way to ensure all key parts of the government are aware of barriers affecting your exports.
We recommend that UK manufacturers use this service wherever you encounter barriers to trade that delay, block or add unnecessary costs to exports.
Any issues reported are shared with officials in relevant government departments, including DBT and Defra, and to UK embassies. Where possible, they will seek to resolve these issues and it can also shape UK priorities in trade negotiations.
We produced a short paper for FDF members on the information you need to provide when reporting a trade barrier.
Rules of origin: their importance to trade in food and drink
In 2018, we published a report with Global Counsel to help UK government and businesses understand the importance of rules of origin for the UK food and drink sector in the context of trade negotiations with the EU and it sets out practical solutions that can deliver the best outcomes for UK food and drink. Our report explains:
- how origin requirements work and why they can pose a particular challenge for our sector; and
- how various approaches to origin requirements can impact supply and distribution models in a series of case studies.
The ideas and solutions set out in our report can be used in any UK trade deal to deliver the simplest and most generous outcomes that will benefit trade and support export growth in UK food and drink.