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12th October
written by Tellus

Updated to reflect ongoing trade negotiations with Turkey and Vietnam The UK has signed a free trade agreement with Japan. After 31 December 2020, EU trade agreements will no longer apply to the UK. Kenya has been added to the list of countries where trade agreements have been signed and the East African Community (EAC) has been removed from the list of countries where trade agreements are still under discussion. For now, the government seems to be focusing on a trade deal with the US, with its potential impact on the price of NHS drugs or chlorinated chicken. But the United States has another priority: to limit the growth of the Chinese economy as much as possible, especially in areas such as technology. The new trade deal between the U.S., Canada and Mexico contains a “poison pill” clause that would allow the U.S. to pull out if one of the other two countries signs a trade deal with a “non-market economy” like China. The U.S. will likely demand a similar clause in a deal between the U.S.

and Britain. Trade agreements also aim to remove quotas – restrictions on the amount of goods that can be traded. As of 31 October 2020, the UK had concluded 24 trade agreements with 53 countries, some using an appropriate approach to quickly replicate existing agreements between the EU and these countries, mentioning only those areas of low differentiation (which has reduced some agreements to around 40 pages from the original 1400 agreement). Among these, there are important economies – in terms of nominal GDP – such as South Korea, Switzerland, Israel and South Africa. The UK and the EU are negotiating a trade deal that will start on 1 January 2021, when the new relationship between the UK and the EU will begin. Few developed economies have a comprehensive free trade agreement with China, and those that do, such as Australia and Switzerland, usually have a particular product (minerals, special machinery) that makes such an agreement attractive to Beijing. Instead, many countries have concluded less comprehensive bilateral agreements that cover only certain areas. The EU and China have been discussing a comprehensive free trade agreement for years, but issues such as China`s violation of intellectual property rights have slowed progress.

The UK does not have an obvious sector that China sees as an imperative advantage for its own interests, so it is unlikely that a deal will be reached quickly. Table “Trade agreements signed” Updated with the latest statistics from the Office for National Statistics Progress in the agreements with Algeria, Bosnia and Herzegovina and Serbia has been modified. Update statistics for all UK trade with countries with which we have signed an agreement using the latest statistics. The following agreements are still under discussion with countries that have already concluded trade agreements with the EU. Last week, Donald Trump and Liu He, China`s vice premier, signed the first phase of a new U.S.-China trade deal. Talks around the deal have been winding and have led to fears about the world`s involvement in a trade conflict between the two economic giants. The signing showed that there is room for compromise and confrontation in relations with China, but the negotiations illustrate the difficulties faced by the United States, which has embraced economic nationalism, and a China whose markets are still limited in many important areas. .

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