Since our last overview of the UK’s trade agreements, there have been several important developments. Some deals have moved closer to implementation, one major agreement has been upgraded, and the UK-India Free Trade Agreement now has a confirmed start date of 15 July 2026.
For UK importers, these changes are worth monitoring. Trade agreements can affect duty rates, documentation requirements, customs processes and the overall cost of bringing goods into the UK. However, the benefits are not always automatic, and each agreement needs to be understood in relation to the specific goods being moved.
Why Trade Agreements Matter
Trade agreements are designed to make it easier for countries to trade with each other. In practical terms, this can mean reduced or removed tariffs, improved market access and clearer rules for businesses moving goods internationally.
However, they do not apply automatically to every shipment. Whether a business can benefit from preferential treatment depends on the product, where it comes from and the specific terms of the agreement.
For that reason, trade agreements can create opportunities, but they also need to be understood and applied carefully.
The UK’s existing trade agreements
The UK already has trade agreements in place with a wide range of countries and trading blocs. These include continuity agreements carried over or adapted after Brexit, as well as newer agreements negotiated independently by the UK.
Existing agreements include arrangements with the EU, Japan, Australia, New Zealand, Singapore, South Korea, Canada and Mexico, among others.
New and expanded UK trade deals
Alongside its existing agreements, the UK has continued to pursue new and expanded trade arrangements with key international markets.
These include the UK-India Free Trade Agreement, the UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership, known as CPTPP, and negotiations with countries and regions including South Korea, Turkey, Switzerland and the Gulf Cooperation Council.
Several of these developments are now moving into a new stagethe upgraded UK-South Korea agreement has been concluded but is not yet in force, CPTPP continues to roll out across more member countries, and other negotiations remain ongoing.
For more detail on the UK’s existing trade agreement network and the agreements that were already in progress, read our previous article: Where the UK Stands on Trade Deals.
Recent Developments in UK Trade Deals
The UK’s trade agreement landscape continues to evolve. For UK importers, the main areas to watch include the UK-India Free Trade Agreement, the upgraded UK-South Korea agreement, the continued rollout of CPTPP, and changes affecting trade with the US.
India: confirmed start date of 15 July 2026
The UK and India have confirmed that their landmark Free Trade Agreement will enter into force on 15 July 2026, marking an important milestone in the trading relationship between the two countries.
The agreement was signed in July 2025 and businesses now have a short preparation period before preferential trading arrangements become available. From 15 July, eligible goods moving between the UK and India may be able to trade under the terms of the agreement, provided the relevant product, customs and origin requirements are met.
The UK Government has described the agreement as the most comprehensive trade deal India has ever brought into force. It is expected to increase bilateral trade by £25.5 billion a year in the long term, add £4.8 billion to UK GDP and increase real wages by £2.2 billion. The Government also expects businesses and consumers to benefit from around £400 million in tariff reductions within the first year.
For UK businesses sourcing from India, the agreement could create opportunities to reduce costs, improve landed cost calculations and review future sourcing strategies. Key tariff reductions for Indian goods entering the UK include product areas such as clothing, footwear and some food products. More broadly, customers importing from India should review product coverage carefully, as the exact benefit will depend on the specific goods involved, the commodity code, the applicable tariff schedule and whether the goods meet the required rules of origin.
This changes the immediate message for businesses importing from India. The agreement is no longer simply signed and awaiting implementation. It now has a confirmed start date, which means importers should use the remaining preparation period to check whether their goods are covered, whether tariff reductions are immediate or phased, and whether suppliers can provide the documentation needed to support origin claims. You can read more about this here: UK-India Free Trade Agreement to Start on 15 July: What Customers Need to Know.
It is also important to be aware of separate tariff changes that may affect India-sourced goods in the meantime. From 1 January 2026, the UK suspended preferential tariff rates on selected goods from India and Indonesia under the Developing Countries Trading Scheme. This is separate from the UK-India Free Trade Agreement, but it may affect landed costs for importers of certain products while the new agreement is still awaiting implementation. You can read more about this in our previous update: UK to Suspend Preferential Tariffs on Selected Goods from India and Indonesia.
For businesses importing from India, the key message is now to prepare for the agreement coming into force on 15 July. Importers should also check whether any current DCTS tariff changes apply to their goods in the meantime.
South Korea: upgraded agreement now concluded
The UK and South Korea have now concluded negotiations on an upgraded Free Trade Agreement. The agreement is not yet in force, as both countries still need to complete their domestic procedures, but it is an important development.
The upgraded agreement is designed to modernise the existing UK-South Korea trading relationship, which was originally carried over after the UK left the EU. It is expected to support continued preferential access and provide more certainty for businesses moving goods between the two countries.
One practical area to watch is rules of origin. These determine whether goods qualify for preferential tariffs under the agreement. Updated or simplified rules can make a real difference where goods include components or materials from more than one country.
For businesses importing from South Korea, this is a positive development, but the same caution applies: the new terms cannot be used until the agreement has entered into force.
CPTPP: Mexico enters the picture
The UK’s accession to CPTPP was already an important development, giving the UK access to a major trade bloc covering markets across the Asia-Pacific and the Americas.
Since then, CPTPP has become more practical for UK traders as more parties complete the process needed for the agreement to apply to the UK.
The UK can already trade under CPTPP terms with several members, including Australia, Brunei, Chile, Japan, Malaysia, New Zealand, Peru, Singapore and Vietnam. Mexico has now ratified the UK’s accession, meaning UK traders will be able to trade with Mexico under CPTPP terms from 22 June 2026.
Canada has not yet ratified the UK’s accession, so UK businesses cannot yet use CPTPP terms when trading with Canada.
For UK importers, CPTPP may offer new opportunities, but it is important to check the detail. CPTPP does not automatically replace every existing trade arrangement, and businesses will need to consider which agreement gives the most appropriate treatment for their goods.
As always, rules of origin, commodity codes and supporting documentation will be central to whether a shipment can benefit from preferential terms.
UK-US: not a full free trade agreement, but still relevant
The UK does not have a comprehensive Free Trade Agreement with the US. However, recent UK-US trade arrangements are still worth noting, particularly because tariffs and market access have become more prominent issues for businesses trading with the US.
The UK-US Economic Prosperity Deal is more limited than a full FTA and focuses on specific sectors and areas of trade. It includes measures relating to goods such as cars, pharmaceuticals, beef and ethanol.
For many businesses, the most relevant point is that UK-US trade remains an area to monitor closely. Any change to tariff arrangements, customs treatment or shipment rules can affect landed costs and the practical movement of goods.
What is Still Being Negotiated?
Alongside the agreements that have already been signed, concluded or brought closer to implementation, the UK continues to pursue further trade discussions.
Negotiations remain relevant with countries and regions including the Gulf Cooperation Council, Switzerland and Turkey. These could become more important for UK importers if agreements are finalised in the future.
It is also important to note that not all negotiations continue indefinitely. Some discussions may pause, change direction or be replaced by other trade arrangements. For this reason, businesses should check the current status of any agreement before relying on expected tariff benefits.
What This Means for PFE Customers
The UK’s trade agreement landscape continues to develop, but the practical message for importers remains the same.
Trade agreements can create opportunities, particularly where they reduce tariffs or provide more certainty around market access. The confirmed start date for the UK-India Free Trade Agreement is a good example of how quickly a signed agreement can move into a practical preparation phase once implementation is confirmed. However, the benefits depend on the goods being moved, where they originate, how they are classified and whether the correct documentation is in place.
Before assuming a shipment qualifies for preferential treatment, businesses should check the commodity code, whether the goods are covered by the relevant agreement, the applicable rules of origin, whether any tariff reductions are immediate or phased, and what origin evidence or supporting documentation is required.
For customers sourcing from India, this review should now take place ahead of 15 July, when the UK-India Free Trade Agreement is due to come into force.
In many cases, the agreement itself is only the starting point. The practical benefit comes from applying the rules correctly.
PFE will continue to monitor developments in the UK’s trade agreements and support customers with the movement of goods as new arrangements come into force.
References:
GOV.UK – The UK’s trade agreements
https://www.gov.uk/government/collections/the-uks-trade-agreements
GOV.UK – UK-India FTA enters into force on 15 July 2026
https://www.gov.uk/government/news/the-countdown-begins-uk-india-fta-enters-into-force-on-july-15th
GOV.UK – UK-India CETA Chapter 3: Rules of Origin
https://www.gov.uk/government/publications/uk-india-ceta-chapter-3-rules-of-origin
GOV.UK – Register to complete origin declarations under the UK-India Free Trade Agreement
https://www.gov.uk/guidance/register-to-complete-origin-declarations-under-the-uk-india-free-trade-agreement
