The United Kingdom will face several challenges in light of Brexit and the COVID-19 pandemic, as it endeavours to reorient and rebuild its economy to reflect this brave new world.

To meet those challenges, the UK government has started negotiations with a number of countries and free-trade blocs that are eager to do business with the UK. 

The objective is simple: create lasting partnerships with mutually beneficial terms that advance the interests of domestic businesses, as well as overseas businesses outside the EU. 

So who are we negotiating with and what does it mean for business? Let's take a look at some of the agreements that have been signed and are currently in force, as well as those that are looming on the horizon. 

Notable agreements that are in force

UK-Singapore Digital Economy Agreement

Broadening the digital economy will be a core part of the UK's post-Brexit economic plan.

As one of the most advanced nations in digital trading, the UK government has struck an exciting new Digital Economy Agreement (DEA) with Singapore. The agreement was brought into force in June 2022 and benefits any UK business whose goods or services are rendered with the assistance of digital technology.

So what are the benefits? The DEA offers those businesses trading with Singapore several advantages over the previous trade agreement. The key arrangements are:

1. Substantial savings in time and money with digitised trade documents, speeding up cross-border transactions via electronic invoicing and digital signatures.
2. Relaxed customs duties on all electronic transactions, allowing UK businesses unprecedented access to Singapore's digital economy. 
3. Improved data flow, meaning businesses will have fewer restrictions imposed on the storage and transfer of their data. 

UK-Norway, Iceland, and Liechtenstein free trade agreement

UK businesses trading with Norway, Iceland and Liechtenstein will benefit from a new free trade agreement (FTA) secured with these three nations. Although the agreement hasn't reached "full ratification" (meaning it's officially valid), its provisions are already in effect. 

The agreement provides preferential trading terms for certain sectors by removing tariffs and streamlining data flow for digitally traded goods. Here are some of the industries the FTA impacts:

• Dairy. For producers of West Country Farmhouse Cheddar Cheese, Orkney Scottish Island Cheddar, Traditional Welsh Caerphilly and Yorkshire Wensleydale, the tariff for exports to Norway has dropped from as high as 277% to a modified £2.30 per kilogram. Additionally, UK egg producers can export up to 48 tonnes tariff-free. 
• Small to medium-sized enterprises (SMEs). For SMEs, the advantages of the agreement lie in its commitment to improving transparency, making it easier for smaller businesses to navigate trade with the FTA members and encouraging new businesses to enter the market. 
• Digital. The agreement aims at improving safeguards around data protection and removing stipulations on data storage that are costly to businesses. Data flow between the UK, Norway, Iceland and Liechtenstein will be free of charge and paperless trading will be effective between states. 

Agreements that are being negotiated

Joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership 

The UK are currently in negotiations with the commission for the Comprehensive and Progressive Agreements for Trans-Pacific Partnership (CPTPP), a club of free-trading nations located around the Pacific rim that represents 13% of the world's GDP. 

The CPTPP is made up of 11 countries:

• Australia
• Brunei
• Canada
• Chile
• Japan
• Malaysia
• Mexico
• New Zealand
• Peru
• Singapore
• Vietnam

Joining this trading pact supports a number of the UK's long-term economic interests as membership will open the door to a number of dynamic markets forecasted for expansion. 

The agreement will see reduced tariffs on trading between associated partners and a focus on liberalising the trade of goods and services by loosening restrictions. Here are a few important areas worthy of your attention:

• The Indo-Pacific region is a key strategic market for the UK. Many members of the CPTPP have been identified as areas of substantial future growth over the next 50 years – and the UK's export portfolio is set to benefit from these foreign expansions.
• With updated provisions on digital trading rules, the agreement will make cross-border transactions simpler and cheaper.
• With increased access to a diverse pool of free-trading economies, UK businesses will enjoy cheaper, more competitive imports.
• The CPTPP's favourable "rules of origin" means any stage in the production of goods and services "originating" from any of the CPTPP members immediately qualifies for low tariffs.

Free trade agreement with the Gulf Cooperation Council

The UK is also negotiating a trade agreement with the Gulf Cooperation Council (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the United Arab Emirates).

This is another sizeable market that represents opportunities for businesses to take advantage of the growing demand in the GCC for UK exports in goods, tech services and digital.

Who stands to benefit most from this FTA?

1. SMEs

SMEs account for 89% of goods exported to GCC countries. With the preferential access to these markets that an FTA would facilitate, UK SMEs will be the first to notice the lightening of tariffs and improved transparency the trade agreement offers. 

2. Service industries

As GCC countries look to reduce their reliance on oil and gas and increase investment in their private sector, the FTA puts the UK's service exports in a unique position to influence economic growth in these countries.

Services such as education, technology, business and finance, are in high demand among GCC members and were valued at £12.2 billion in 2020.

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