Brexit trade deals signed so far worth just 8 per cent of UK total trade

The EU, taken as a whole is the UK’s largest trading partner. In 2018, UK exports to the EU were £291 billion (45% of all UK exports). UK imports from the EU were £357 billion (53% of all UK imports).

Therefore, the UK had an overall trade deficit of -£66 billion with the EU in 2018. A surplus of £28 billion on trade in services was outweighed by a deficit of -£94 billion on trade in goods.

Services accounted for 41% of the UK’s exports to the EU in 2018. Financial services and other business services (a category which includes legal, accounting, advertising, research and development, architectural, engineering and other professional and technical services) are important categories of services exports to the EU – in 2018 these two service categories made up just over half of of UK service exports to the EU.

(Source – Research briefings – UK Parliament – published Nov 1st 2019)

 

Most of these trade deals now signed to replace those within the EU are in fact, ‘continuity of trade deals. ‘ These were already in place but required adjusting due to the current arrangement with the EU.

So far, the UK has signed 18 “continuity” deals covering 48 countries or territories. Combined, these deals represent just 8% of total UK trade. No other trade deals have been signed although some are being negotiated. The current Conservative government considers a trade deal with America to be the big prize. Currently, Britain enjoys a trade surplus with America of nearly $19billion. Outside of the EU, America is Britain’s biggest trading partner. U.S. goods and services trade with the UK totalled $261.9 billion in 2018. Exports were $140.4 billion; imports were $121.5 billion.

A full trade agreement with America would mean a significant trade deficit being created with America as lower quality/regulated goods will be allowed in. Any deal to be signed with the USA is likely to take a number of years to sign meaning the UK will be trading through WTO rules – an organisation that America has been undermining for years.

Trade deals signed so far:

 

• Morocco (signed 26 October)
• Georgia (21 October)
• Southern African nations (9 October)
• Tunisia (4 October)
• Lebanon (19 September)
• South Korea (22 August)
• Central America (18 July)
• Andean countries (15 May)
• Norway and Iceland (2 April)
• Caribbean countries (22 March)
• Pacific Islands (14 March)
• Liechtenstein (28 February)
• Israel (18 February)
• Palestinian Authority (18 February)
• Switzerland (11 February)
• The Faroe Islands (1 February)
• Eastern and Southern Africa (31 January)
• Chile (30 January

 

And that’s it.

 

 

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