Beyond India: The UK’s Expanding Web of Global Trade Deals

In this article, David Sapsted explores the UK’s recent wave of global trade negotiations, from fresh deals with the US and EU to slower-moving talks with the Gulf and Switzerland. With global alliances shifting and trade blocs expanding, the UK’s post-Brexit strategy is gaining complexity and urgency.

David Sapsted

23 June 2025

A Busy Spring for UK Trade Diplomacy

It turned out to be quite a spring for the UK's trade deal aspirations. At the forefront, of course, was the free trade agreement (FTA) with India, but one other not-quite-so-free deal was agreed with the United States, and progress made for a post-Brexit "reset" with the European Union. Meanwhile, out of the spotlight, talks continued over a pact with Gulf states and over an advanced FTA with Switzerland.Additionally, last December the UK became the first European nation to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) - a move that even the government conceded would have little immediate effect on the nation's trade prospects. Now, though, that might be about to change.Spurred on by Donald Trump's global tariffs policy, leaders of the EU and the CPTPP - whose membership comprises Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore, the UK and Vietnam - have held tentative discussions over a possible trading partnership. And in late May, Sweden formally proposed at a meeting of foreign ministers in Brussels that the EU join the CPTPP with the aim of forming the world's biggest free trade bloc.It remains to be seen if such a development is feasible. Here is what we do know about other UK trade deals, already achieved or in the offing (the India FTA is covered separately in this edition of the magazine)...

EU Deal Signals a Pragmatic Post-Brexit Reset

British business groups, manufacturers and even supermarket chains unanimously praised the UK-EU deal, the first to be agreed since Brexit became a reality five years ago.Although a host of details, timeframes and costs remains to be resolved, the agreement promises a reduction of Brussels red tape on UK exports, particularly on food and drink; and opens up the prospect of British passport holders the chance to use e-gates when travelling to mainland Europe.Additionally, a new UK-EU defence and security pact has been pencilled in, which could offer British arms firms access to Europe's Security Action for Europe (Safe) - a £150 billion fund providing loans for defence projects. There will also be a link-up between carbon markets to avoid tariffs on carbon-intensive goods, such as steel and cement.The big UK concession has been to extend by 12 years the Brexit deal allowing EU and Norwegian fishermen access to UK waters, which was due to expire next year. The move has not gone down well with the British fishing industry, although there will be annual reviews of catch quotas.Rain Newton-Smith, CEO of the Confederation of British Industry, welcomed the deal overall. "After the turbulence of the last decade, today's Summit marks a leap forward in the EU-UK relationship. The government has been relentless in its commitment to free and fair trade on the international stage, providing businesses with a shot of confidence through recent deals with the US and India," she said. However, Ms Newton-Smith added: "The work must not stop here: making the most of this opportunity means not just resetting the relationship but futureproofing it. With the EU as our largest trading partner, continued cooperation will unlock the investment needed to drive growth, protect jobs, and raise living standards. "The bleak global trading environment - from escalating geopolitical tensions to sluggish growth has underscored the importance of deepening ties with trusted, like-minded partners. Lookingahead, continued progress on business travel and youth mobility can help give more momentum to the government's sustainable growth mission." Shevaun Haviland, director-general of the British Chambers of Commerce (BCC), said the deal "marks a turning point in UK-EU relations which puts our trade relationship at the forefront of our partnership going forward". “For four years, businesses have fought hard to sustain sales to the EU in the face of a rising tide of costs and paperwork which has severely dented their competitiveness."But we must not stop here, this agreement must be the foundation on which we aspire to build a much stronger business relationship going forward. That can only be of benefit to all our economies.”

Historic But Imperfect: A Compromise Deal with the US

Sir Keir Starmer hailed the deal reached with the US in May as "historic" and he was right in as much as it was the first agreement reached with Washington since President Trump imposed tariffs across the world on the occasion he labelled - with unintended irony, according to many - Liberation Day.Unfortunately, by the beginning of June, the confusion surrounding the White House's clampdown had been thrown into further confusion after a US federal court ruled that Congress, not the president, had exclusive powers under the constitution to regulate commerce with other nations. The ruling affected only the blanket, global tariff of ten per cent, apparently leaving industry-specific tariffs in place.Only weeks before the ruling, the US-UK Economic Prosperity Deal (EPD) had been hailed as an agreement that would save thousands of manufacturing jobs in the UK, even though it was far from a free trade deal. The British enthusiasm stemmed mainly from the fact that the Americans reduced the tariff on British-made cars from 27.5 per cent to ten per cent (subject to a maximum quota of 100,000 vehicles per year) and abolished the 25 per cent tariff on UK exports of steel and aluminium products, subject to a quota still to be determined.Adrian Mardell, CEO of Jaguar Land Rover - which, in April, suspended all exports to the US when the car tariff leapt to 27.5 per cent - said the firm “warmly welcomed the deal, which secures greater certainty for our sector and the communities it supports”. An economic security alignment also means zero tariffs on jet engines and aerospace components imported into the US, but other UK exports will still be subject to the universal ten per cent tariff imposed by the White House.The two governments have also agreed to negotiate a digital trade agreement but the concessions so far made by the British to the US have caused concerns, not least the fact that US has trebled tariffs on the UK from the pre-Trump 3.4 per cent to ten per cent now, while the UK has cut its tariffs by two-thirds from 5.1 per cent to 1.8 per cent.Specific grievances centre on the zero duty rates that will allow up to 13,000 tonnes of US beef into Britain a year (though UK rules banning hormone treated beef will remain, along with the outlawing of chlorinated chicken) and the abolition of the current 19 per cent tariff on ethanol. On beef, the National Farmers’ Union (NFU) applauded the protection of UK food standards in the deal, but condemned the level of access it granted US competitors. Tom Bradshaw, NFU president, said: “Our biggest concern is that two agricultural sectors have been singled out to shoulder the heavy burden of the removal of tariffs for other industries in the economy.“While we understand this, we also know that today is the start, not the end, of a process and UK agriculture cannot continue to shoulder such imbalances in future negotiations.”On ethanol, a petrol substitute produced from agricultural products, the leaders of the two companies that dominate the industry in Britain warned that they could collapse as a result of the deal.Paul Kenward, chief executive of ABF Sugar, and Grant Pearson, chairman of Ensus, told The Times the deal posed “an existential threat” for the sector and put at risk hundreds of jobs at plants in NE England and Yorkshire.However, Garima Srivastava, legislation senior adviser at the Chartered Institute of Export & International Trade said that, overall, the agreement represented “very welcome news” for UK exporters. “After years of uncertainty, especially post-Brexit, the removal of steel and aluminium tariffs could breathe new life into the British metals industry. And for car manufacturers, the reduced tariffs, though capped, give a clearer path to the US market," she said. “Of course, the trade-offs on agricultural access and digital taxes mean the UK is walking a fine line. But this deal signals a fresh momentum in transatlantic trade and businesses would do well to pay attention.”Ms Srivastava added that although “it is not a done deal across the board, it is a strong signal that deeper cooperation could be coming”.

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Cautious Optimism in the Gulf: GCC Deal Still in Limbo

Although the UK government has branded a trade agreement with the six GCC nations (Saudi Arabia, the UAE, Qatar, Kuwait, Oman, and Bahrain) the "next deal" it will make, relatively little has emerged after three years of negotiations. These negotiations "have been going on for yonks so we should be further on than we are now,” according to Edward Lister, co-chairman of the UK-UAE Business Council. He questioned why the UK had not pursued deals with individual Gulf states. “You cannot underestimate the importance of a direct deal between two countries," he stated.The UK government remains committed to securing a deal, which it estimates will boost bilateral trade by 16 per cent, equivalent to an extra £8.6 billion a year in trade between the GCC and UK.Current sticking points in negotiations are believed to include the choice of a mutually-acceptable jurisdiction to resolve trade disputes, and the removal of complex non-tariff barriers such as standards and procedures affecting foreign companies.Alana Li, Middle East analyst at the Asia House think-tank, told Arabian Gulf Business Insight (AGBI): “A deal would pave the way for the UK to enhance commercial relationships across the region, potentially leading to deeper bilateral agreements with individual economies such as the UAE.“The Gulf states are not a homogeneous bloc. Differing economic priorities and regulatory frameworks can complicate collective negotiations.”A spokesman for the Department for Business and Trade said: “Negotiations are progressing at pace, with the priority being to get the right deal for both sides.” Mr Lister said that against the backdrop of Donald Trump’s tariffs, trade deals were “more important than ever before” and this should encourage both sides to move swiftly towards an agreement.

Switzerland Talks Offer Hope for Services Sector Boost

A seventh round of negotiations on an enhanced FTA with Switzerland are scheduled for "early summer", according to a government spokesman in London, with optimism high that a deal is not far away.In January, the two nations signed the Recognition of Professional Qualifications Agreement making it easier for qualified professionals in regulated sectors to work in both countries.Now, the FTA negotiations will centre on "the UK’s ambition to secure improved market access for its service suppliers, ensuring that data and innovation flow seamlessly between two of the world’s foremost service-driven economies," according to the EU Today website."The agreement also aims to provide long-term assurances regarding UK business travel to Switzerland, a key consideration for British professionals operating across sectors such asfinance, law, and consultancy."The report added that in the latest round of negotiations in the spring, the two sides "made substantial headway", adding: "Both sides are reportedly working towards what could be the most comprehensive financial services chapter ever agreed by either country in a trade deal. Given London and Zurich’s status as global financial hubs, an agreement in this area could bolster cooperation, reduce barriers, and set a new benchmark for international financial trade agreements."

Looking Ahead: CPTPP and the EU’s Surprise Move

The UK’s accession to the CPTPP was initially seen as more symbolic than substantial. But with Sweden proposing that the EU join the bloc, potentially forming the world’s largest free trade area, the strategic implications could grow dramatically. Whether this proves feasible or not, it signals shifting sands in global trade diplomacy.

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