This article is from the source 'bbc' and was first published or seen on . It last changed over 40 days ago and won't be checked again for changes.

You can find the current article at its original source at https://www.bbc.co.uk/news/uk-47213842

The article has changed 40 times. There is an RSS feed of changes available.

Version 31 Version 32
Brexit: What trade deals has the UK done so far? Brexit: What trade deals has the UK done so far?
(25 days later)
The European Union (EU) has about 40 free trade deals, covering more than 70 countries. That means the UK, as a member of the EU, can currently trade with countries like Canada without having to pay taxes (tariffs) on most goods. The UK is no longer a member of the European Union (EU), which means it's now free to negotiate and sign trade deals around the world.
In the run-up to Brexit, the UK has been trying to replicate all of the EU's trade deals. This is to make sure the UK has the same tariff-free access to these countries after the transition period, rather than paying extra taxes on goods under WTO (World Trade Organization) terms. Securing a UK-EU trade deal will be top a priority over the months ahead. But what are free trade deals and why does the UK need them?
Up to now, the UK has only been allowed to negotiate and sign deals with countries that have existing EU trade agreements. After Brexit day, which is due on 31 January, the UK will be free to negotiate and sign new trade deals with countries that have no existing EU deals - like the US. What is a trade deal?
At the same time, the UK will also need to negotiate a free trade deal with the EU to ensure that UK goods are not subject to tariffs and other trade barriers after the transition period ends on 31 December 2020. A trade deal aims to increase trade between countries - usually in goods, but occasionally in services too.
How many deals have been rolled over? Making it cheaper to trade between countries is one way of doing this. A free trade deal will often reduce or eliminate tariffs - charges for bringing certain products across borders.
So far, the UK has signed 20 "continuity" deals covering 50 countries or territories: Trade agreements also aim to remove quotas - these are limits on the amount of goods that can be traded.
Which deals won't be rolled over? Trade can also be made simpler and faster if countries have the same rules, such as the colour of wires in plugs. The closer the rules are, the less likely goods need to be checked to make sure they meet the required standard.
The UK government has previously said some deals are unlikely to be rolled over by exit day. San Marino, Andorra and Turkey won't be ready because these countries are already in a customs union with the EU. A deal with Japan - which is worth just over 2% of total UK trade - also won't be ready. So why have tariffs and quotas at all?
While free trade agreements aim to boost trade, too many cheap imports could threaten a country's manufacturers.
So in order to protect local car makers, for example, a country could impose tariffs on vehicles from other parts of the world.
Why does the UK need an EU trade deal?
The UK will need to secure an agreement with the EU to stop new tariffs and other trade barriers coming into force after the transition period ends on 31 December 2020.
During the transition period the UK will still be part of the EU's trading arrangements - the single market and the customs union. That means no tariffs, quotas or checks will be introduced.
The point of the transition is to give both sides some breathing space while the trade deal is negotiated, and to give businesses time to get ready.
If any trade deals are reached, either with the EU or other countries, they won't start until the UK has left the transition.
What about a Canada-style deal?
Prime Minister Boris Johnson has spoken in favour of an EU trade agreement that builds on the deal that Canada currently has with the EU.
Tariffs on most Canadian goods, such as machine parts, have been eliminated, although there are some additional checks (such as customs and VAT).
Services, like banking, are much more restricted.
The financial sector is very important to the UK economy - so getting a deal in this area will be a priority in the talks.
How easy will it be to negotiate a UK-EU trade deal?
Neither side wants tariffs and quotas - so that part of the trade deal could be straightforward.
But getting agreement around rules and regulations could be much tougher.
The UK and the EU begin the negotiations with exactly the same rules - from the financial help companies are allowed to get from governments, to the way wine is labelled.
If the UK moves away from some of these rules, it might make it easier for it to secure trade deals with other countries, like the US.
The EU, on the other hand, wants to keep close alignment with the UK, to prevent its companies gaining a competitive advantage.
But even if a detailed trade deal is agreed, it won't eliminate all checks. That's because the EU requires certain goods (such as food) from non-EU countries to be checked, no matter how closely they follow EU rules.
Time is also a problem. The transition is due to end on 31 December, and formal trade talks are not likely to start until early March. That's because the EU needs to agree its negotiating objectives among its 27 members first.
What happens if UK-EU trade talks fail?
If negotiators fail to reach a deal in time, then the UK faces the prospect of trading with the EU under the basic rules set by the World Trade Organization (WTO), which is where countries negotiate the rules of international trade.
If the UK had to trade under WTO rules, tariffs would be applied to most goods which UK businesses send to the EU. The worry for companies is that this would make their goods more expensive, and harder to sell in Europe.
Trading on WTO terms would also mean full border checks for goods, which could cause traffic bottlenecks at ports, such as Dover.
And the UK service industry would lose its guaranteed access to the EU single market.
That would affect everyone from bankers and lawyers, to musicians and chefs.
What trade deals has the UK done so far?
While it was an EU member, the UK was automatically part of around 40 trade deals the EU had struck with more than 70 countries.
In the run-up to Brexit, the UK was given permission to replicate these agreements. So far, the UK has managed to roll over 20 "continuity" deals, covering 50 countries or territories:
How much are these trade deals worth?How much are these trade deals worth?
In 2018, the total value of UK trade (goods and services) was £1.3tn. About 11% of this trade came from countries with EU trade agreements.In 2018, the total value of UK trade (goods and services) was £1.3tn. About 11% of this trade came from countries with EU trade agreements.
The 20 trade agreements the UK has reached represent just over 8% of total UK trade. That means the UK has so far rolled over about three-quarters of the EU's trade deals, based on the 2018 trade figures.The 20 trade agreements the UK has reached represent just over 8% of total UK trade. That means the UK has so far rolled over about three-quarters of the EU's trade deals, based on the 2018 trade figures.
Kosovo
The agreement with Kosovo is the smallest trade deal to be rolled over. UK-Kosovo trade was just £8m in 2018.
Jordan
The agreement with Jordan was reached on 14 November. Total trade between the UK and Jordan was worth £448m in 2018.
Morocco
The UK's deal with Morocco was signed on 26 October. Trade between the two countries was worth £2.5bn in 2018.
Georgia
The UK signed an agreement with Georgia on 21 October. Trade between the two countries was worth £123m in 2018.
Southern Africa customs union and Mozambique
The UK signed a continuity deal with six African nations - South Africa, Botswana, Lesotho, Namibia, Eswatini (formerly Swaziland) and Mozambique - on 9 October.
Trade between the UK and these six countries was worth £10.2bn in 2018.
Tunisia
Signed on 4 October, the government says UK consumers will continue to benefit from from lower textile and clothing prices following the agreement.
Trade between the UK and Tunisia was worth £542m in 2018.
Lebanon
The deal with Lebanon was signed on 19 September. Total trade between the UK and Lebanon was worth £762m in 2018.
South Korea
Signed on 22 August, the South Korea agreement is the first to be struck in Asia.
Total trade between the UK and South Korea was worth £14.8bn in 2018.
Central America
Six Central American countries (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua and Panama) signed the UK-Central America Association Agreement on 18 July.
The government says the deal means UK consumers will continue to benefit from lower prices on goods such as prawns and fruit.
Total trade between the UK and Central America was worth £1.1bn in 2018.
Andean countries
Colombia, Ecuador and Peru are the countries covered by the Andean agreement, signed on 15 May.
Total trade between the UK and the Andean countries was worth £3.4bn in 2018.
Norway and Iceland
The agreement, signed on 2 April, maintains the same level of tariffs on goods traded between the UK, Iceland and Norway.
The government says UK businesses will continue to benefit from lower import prices, such as aluminium and some fuel and oil products.
Total trade between the UK and Norway-Iceland was £30.6bn in 2018.
Caribbean countries
The deal with the Caribbean states (known as the Cariforum) covers 12 countries, including Barbados and Jamaica, and was signed on 22 March.
A further two countries, the Bahamas and the Republic of Suriname, have agreed to the deal in principle and are "expected to sign shortly".
Exporters of rum, bananas and sugar cane are all expected to benefit from the arrangement.
Total trade between the UK and the region was worth around £3.7bn in 2018.
Pacific Islands
The deal with the Pacific Islands - covering Fiji and Papua New Guinea - was signed on 14 March.
The UK says the deal will maintain access to goods such as fish and sugar.
In 2018, total trade between the UK and the region was worth around £163m.
Israel
The deal was formally signed on 18 February. The government says the agreement could save the UK vehicle industry up to £9m a year in tariff charges.
Total trade between the UK and Israel was worth £4.2bn in 2018.
Palestinian Authority
The UK-Palestinian Authority agreement was signed on 18 February.
The UK government says the deal will benefit Palestinian exporters of fruit, nuts and olive oil.
Total trade between the two was £41m in 2018.
Switzerland
The UK-Switzerland agreement was confirmed in Bern on 11 February.
Without the deal, the UK government says the motor industry could have faced up to £8m in tariff charges, while aluminium exporters could have faced up to £4m.
Trade between the UK and Switzerland was worth £32.4bn in 2018 - accounting for about 2.5% of total UK trade.
An additional agreement, which applies the main parts of the Swiss-UK deal to Liechtenstein, was also signed.
The Faroe Islands
The Faroe Islands is the UK's 114th largest trading partner, according to the government. Total trade between the two countries was worth £252m in 2018.
The UK government says that the agreement will mean fish prices won't rise as a result of tariffs.
Eastern and Southern Africa
Trade between the Eastern and Southern Africa region was worth £2bn in 2018. The deal covers Madagascar, Mauritius, Seychelles and Zimbabwe.
Meat and fish are the main goods imported from the region by the UK.
Chile
The UK-Chile trade arrangement was the first agreement to be signed. Total trade was £2bn in 2018.
Fruit, nuts and drinks are the top goods imported by the UK. The government says the deal will help to protect parts of the UK's wine industry.
Mutual recognition agreements
The UK has also signed deals with the United States, Australia and New Zealand, but these are "mutual recognition agreements" and not free trade agreements.
The Australia and New Zealand deal replicates all aspects of the current EU agreements when it comes to recognising product standards, such as the labelling and certifying of wine.
The US agreement will, according to the Department for International Trade, particularly benefit the pharmaceutical sector which accounts for around £7.7bn of UK exports to the US - about 18% of the total.
Read more from Reality CheckRead more from Reality Check
Send us your questionsSend us your questions
Follow us on TwitterFollow us on Twitter