Currently, thanks to its membership of the European Union, the UK enjoys more than 40 trade agreements with more than 70 different countries.
However, after the UK departs the EU on 29 March it will no longer have access to these deals, which is why the Government has said for months that it is committed to replicating its existing agreements “as far as possible” and has therefore begun negotiations with a number of countries to get arrangement in place.
Liam Fox, the international trade secretary, told MPs in January last year that the Government wanted to achieve “continuity and stability” by ensuring that the UK would continue to benefit from these arrangements.
These are an important element of the UK economy as Government estimates suggest that around 11 per cent of UK trade relies on existing agreements via the EU.
So far, the country has managed to agree six deals with Israel, the Palestinian Authorities, Switzerland, the Faroe Islands, Eastern and Southern Africa and Chile.
These vary in what they offer, but on the whole, they seek to relax certain rules, reduce tariffs and grant easier access to markets.
Despite ongoing efforts by the Government, it is quickly becoming clear that it may not be possible to negotiate all of the 40 deals it hopes to achieve by 29 March.
George Hollingbery, an International Trade Department minister, told MPs that some of the trade agreements would be “challenging”, with “one or two…close to impossible” to complete by the Brexit deadline.
Countries, where the UK has no formal trade agreement by 29 March, will rely on the World Trade Organization rules in order to trade with them in the short term.
If you are looking to expand your trade network with other nations, but are concerned about the impact of Brexit, please speak to our team.