Post-Brexit trade deals for competitive British exports

Post-Brexit trade deals for competitive British exports

With the pound sterling at it’s lowest level for decades, UK exports are incredibly good value to overseas buyers, we review the post-Brexit trade deals, to channel the UK’s competitive export sectors.

The UK has signed trade deals and agreements in principle with 71 countries and one with the EU, but the majority of these are rollovers, that copy the terms of deals the UK previously had when it was an EU member.

Despite the US accounting for 17% of total UK trade, President Biden has played down the chances of a UK-US trade deal and Prime Minister Liz Truss has confirmed that any deal could be many years away.

Since Brexit, the UK has pursued its own independent trade deals, most recently signing a deal with New Zealand in February and agreeing a deal with Australia, which should bolster the UK’s chances of joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP).

The CPTPP is a trade agreement between 11 countries: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The UK applied to join in February 2021. Negotiations started in September 2021 and the Government says it hopes they will be concluded by the end of 2022.

A deal with Japan was signed in October 2020 and was the first one that differed from the existing EU trade deal.

Agreements with Norway, Iceland and Liechtenstein were announced in June 2021 and talks with India began in early 2022, although no deal has yet been reached.

There is an existing trade agreement with Canada which largely replicates that which Canada has with the EU. Negotiations for a new UK-Canada trade agreement were launched in March 2022.

Negotiations were launched in May 2022 to update the existing UK-Mexico trade agreement. This largely replicates the agreement Mexico has with the EU.

The Gulf Co-operation Council (GCC) represents six states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE). The UK currently does not have a free trade agreement with any of these countries. Negotiations started in June 2022.

In April 2022, the Government launched a consultation on a new trade agreement with Switzerland, to update the existing FTA which largely replicates the EU-Switzerland agreement and negotiations are expected to start later in 2022 with Israel.

Over the past four decades Metro has gained essential knowledge and experience in designing and managing supply chains into new international markets, for multiple verticals including retail, fashion, automotive, chemicals, industrial, and manufacturing. 

To review your sourcing options or for advice on entering new markets, please contact Elliot Carlile to discuss your current situation and review options to achieve your export objectives.

No one is better placed to assist, support and deliver your export logistics aspirations than the experienced Metro export team and platform that has already assisted exporters over five decades. Take advantage of our experts for advice and growing your own global markets with slick and fit for purpose supply chains. We can and will assist.

Trade agreements in effect

Agreements with the following countries and trading blocs are in effect. Where the agreement has not yet been ratified by both countries, provisional application or bridging mechanisms have been put in place to ensure continuity of trade.

AlbaniaFull ratification
ColombiaFull ratification
EcuadorFull ratification
PeruFull ratification
CanadaFull ratification
CameroonFull ratification
Antigua and BarbudaProvisional application
BahamasProvisional application
BarbadosProvisional application
BelizeProvisional application
DominicaProvisional application
Dominican RepublicProvisional application
GrenadaProvisional application
GuyanaProvisional application
JamaicaProvisional application
St. Kitts and NevisProvisional application
Saint LuciaProvisional application
St. Vincent and the GrenadinesProvisional application
SurinameProvisional application
Trinidad and TobagoProvisional application
Costa RicaFull ratification
El SalvadorFull ratification
GuatemalaFull ratification
HondurasFull ratification
NicaraguaFull ratification
PanamaFull ratification
ChileFull ratification
Côte d’IvoireFull ratification
MauritiusFull ratification
SeychellesFull ratification
ZimbabweFull ratification
EgyptFull ratification
Faroe IslandsFull ratification
GeorgiaFull ratification
GhanaProvisional application
IcelandProvisional application
NorwayProvisional application
IsraelFull ratification
JapanFull ratification
JordanFull ratification
KenyaFull ratification
KosovoFull ratification
LebanonFull ratification
LiechtensteinFull ratification
MexicoFull ratification
MoldovaProvisional application
MoroccoProvisional application
North MacedoniaProvisional application
FijiProvisional application
Papua New GuineaProvisional application
SamoaProvisional application
Solomon IslandsProvisional application
Palestinian AuthorityFull ratification
SerbiaFull ratification
SingaporeFull ratification
South KoreaFull ratification
BotswanaFull ratification
EswatiniFull ratification
LesothoFull ratification
MozambiqueFull ratification
NamibiaFull ratification
South AfricaFull ratification
SwitzerlandFull ratification
TunisiaFull ratification
TurkeyProvisional application
UkraineFull ratification
VietnamProvisional application
UK trade after Brexit

UK trade after Brexit

The public accounts committee said the government has failed to demonstrate the economic benefits of its post-Brexit trade deals and it was doubtful that the government would hit its target of ensuring that 80% of UK trade was covered by a free trade deal by the end of 2022.

The UK has signed just three new trade agreements since leaving the EU.

The agreement with Australia was signed in December 2021 and that with New Zealand in February 2022. These agreements are not yet in force, but the digital trade agreement with Singapore was signed in February 2022 and entered into force on 14th June 2022.

The UK Government has started trade agreement negotiations with:

Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The CPTPP is a trade agreement between 11 countries: Australia, Brunei Darussalam, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The UK applied to join in February 2021. Negotiations started in September 2021 and the Government says it hopes they will be concluded by the end of 2022.

United States
Negotiations started in May 2020. An agreement is hoped for by the government, but not expected soon.

India
There is no current trade agreement between the UK and India. Negotiations started on 17th January 2022.

Canada
There is an existing trade agreement with Canada which largely replicates that which Canada has with the EU. Negotiations for a new UK-Canada trade agreement were launched in March 2022.

Mexico
Negotiations were launched in May 2022 to update the existing UK-Mexico trade agreement. This largely replicates the agreement Mexico has with the EU.

Gulf Co-operation Council (GCC)
The GCC represents six states (Bahrain, Kuwait, Oman, Qatar, Saudi Arabia and the UAE). The UK currently does not have a free trade agreement with any of these countries. Negotiations started in June 2022.

The UK is preparing for free trade agreement negotiations with:

Israel
Negotiations expected to start later in 2022.

Switzerland
In April 2022, the Government launched a consultation on a new trade agreement with Switzerland, to update the existing FTA which largely replicates the EU-Switzerland agreement.

Over the past four decades Metro has gained essential knowledge and experience in designing and managing supply chains into new international markets, for multiple verticals including retail, fashion, automotive, chemicals, industrial, and manufacturing. 

To review your sourcing options or for advice on entering new markets, please contact Elliot Carlile to discuss your current situation and review options to achieve your export objectives.

July UK border updates – consistent trade with the EU Bloc

July UK border updates – consistent trade with the EU Bloc

The government, who would like your feedback on UK border controls, have announced an unexpected border easement, but another one that nearly a quarter of a million traders would welcome is unlikely to happen.

Customs Declaration Service
The customs handling of import and export freight system (CHIEF) has been in use by HM Revenue and Customs (HMRC) for nearly 30 years and is being replaced from the 30th September 2022.

Metro clients will be migrated onto the CDS platform and will maintain the same support currently provided by our export, import and off service brokerage teams, but they must be registered to use CDS. 

With just three months to go HMRC recently contacted 220,000 businesses, to urge them to move over to CDS, because it takes time to move across, depending on the size and nature of their business and they must start the process now to ensure they are fully set up ahead of the 30th September deadline.

Effective from last Tuesday all new registrations must be made on the Customs Declaration Service, because CHIEF is closing for import declarations on the 30th September and HMRC needs time to ensure that the shutdown proceeds in an orderly manner.

It consequently appears extremely unlikely that the September switch-off date for CHIEF, for UK imports, will be postponed and the date is now set in stone.

Brokerage manager, Andy Fitchett, “We’re ahead of the curve, hiring 35 brokers to ready us for the CDS launch, with procedures, processes and training in place. We’re going through the process of getting our clients onboard now, and our aim is to have this done by August, so we can spend September organising any stragglers.

SEE OUR GUIDE

Safety and security easements
On the 1st July HMRC introduced four new border easements, focused around the submission of safety and security (S&S) information and designed to simplify the movement of vehicles taking goods into and out of the UK.

The announced changes will benefit hauliers, because they will not be burdened with the administration of creating documentation for the port of departure and will benefit the ports of departure in the UK because the haulier can move through the port unheeded.

The quicker circulation of vehicles does means that equipment should be available to shippers faster.

SEE OUR REPORT

Border users survey
The government’s 2025 UK Border Strategy is intended to make the UK border the most effective in the world, embracing innovation and simplified processes and your experiences will help them understand how the border can be improved.

With improved security and biosecurity, the ambition is to make border documentation digital, to reduce complexity for traders and the border industry.

The new Target Operating Model will set out the transformative programme that will digitise the border; harnessing new technologies and data to reduce friction and costs for businesses and consumers.

The government’s border users survey aims to understand how the experience of the border can be improved through digitisation of government or trade documentation and processes.

ACCESS THE SURVEY HERE

RESPONSES MUST BE SUBMITTED BY THE 11TH JULY 2022

Our customs brokerage team have been processing live entries through CDS and our CuDoS automated customs platform has been updated for and integrated with CDS for nationwide declarations, at any point of entry or exit.

Metro are at the forefront of UK/EU customs brokerage solutions, with our automated CuDoS declaration platform and a dedicated team of customs experts, reacting swiftly to any changes in the UK’s trading relationship with the EU.

To learn how we can simplify and automate customs declarations for your businesses, please contact Elliot Carlile to talk through the options.

UK inches towards potential EU trade war – impact on European logistics

UK inches towards potential EU trade war – impact on European logistics

After the PM’s trip to Northern Ireland this week failed to trigger any progress in the dead-locked political situation, the government has announced plans to table legislation that will scrap parts of the Northern Ireland protocol, in spite of fears that it could initiate a trade war with the EU.

The political parties in Stormont all criticised the prime minister after a series of meetings on Monday and the Democratic Unionist Party (DUP) has withheld its support until the government takes “decisive action” on post-Brexit trade arrangements.

Mr Johnson said a “legislative solution” was needed and the Foreign Secretary has now confirmed that the government would, in the coming weeks, introduce legislation to strip away parts of the protocol to enable easier trade, though it would have to go through parliament, which could take months.

Brexit opportunities minister, Jacob Rees-Mogg claimed last week that the EU “wants to make the UK feel bad about having left the European Union”, but doubted the EU would retaliate with something as severe as a trade war, saying it would be a “pretty silly” thing to do.

While the former Brexit minister David Frost has said the UK may face EU retaliation, although it would be disproportionate to the trade involved and logic may yet prevail, but if it does happen, “we should not fear it.”

However, Britain’s former ambassador to the EU, Sir Ivan Rogers, has warned there’s a severe risk that we are heading into a trade war and that the threatened legislation wouldn’t even have to come into force for the EU to think that it was entitled to retaliate.

While many hope that the EU would launch lengthy legal proceedings that could result in the UK being fined, the real fear is they may terminate the trade deal with the UK and impose tariffs on all British exports to the bloc.

The imposition of tariffs could be triggered quite quickly and the EU could also increase border checks, to disrupt Channel trade and even if the UK does not retaliate, there could be shortages and price rises, which would be deeply unpopular, at a time of rampant inflation, a cost of living crisis and looming recession.

The EU has already ejected the UK from its flagship Horizon research programme because it no longer trusts the government and could take similar steps in other areas.

Let’s hope the politicians can agree a sensible solution, quickly, encompassing all stakeholders and rather than confuse future trade within Europe, simplify it. We are closely monitoring the situation and the impact and ‘fallout’ of any negative outcome over coming weeks and months, and possibly beyond.

Metro are at the forefront of UK/EU customs brokerage solutions, with our automated CuDoS declaration platform and a dedicated team of 40 customs experts, which means we are well positioned to react swiftly to any changes in the UK’s trading relationship with the EU.

Automating and submitting customs declarations and associated paperwork, CuDoS simplifies compliant border processing, in either direction.

To learn how we can simplify and automate customs declarations for your businesses, please contact Elliot Carlile to talk through the options.