Since leaving the EU’s common commercial policy, the UK has built its own network of free trade agreements (FTAs). Used correctly, these agreements let importers pay reduced or zero duty on qualifying goods. Ignored or misapplied, they mean overpaying HMRC by thousands of pounds a year.
This guide covers every UK FTA currently in force, explains the Developing Countries Trading Scheme (DCTS), and walks through the practical steps for claiming preferential rates.
Key Takeaways
- The UK has over 70 trade agreements in force, covering more than 170 countries and territories.
- Preferential duty rates can reduce import costs to zero on many goods, but only if you meet rules of origin and hold the correct documentation.
- The EU-UK Trade and Cooperation Agreement (TCA) is the single most important FTA for most UK importers, covering roughly 50% of UK goods trade.
- The DCTS replaced the old GSP scheme in June 2023, giving duty-free or reduced-duty access to goods from around 65 developing countries.
- Failing to claim preferences you are entitled to is one of the most common and costly mistakes in UK importing.
Why Trade Agreements Matter for Importers
Every time goods cross the UK border, import duty is calculated based on the commodity code and the country of origin. The UK Global Tariff (UKGT) sets the standard (MFN) rate, which applies to countries without a trade agreement.
FTAs override that default. If your goods originate in a country with a UK trade agreement, and you can prove it, you pay the preferential rate instead. On many product lines that rate is 0%.
The savings are not marginal. A standard MFN rate of 12% on a shipment worth GBP 500,000 means GBP 60,000 in duty. If the same goods qualify for a 0% preferential rate under an FTA, that entire cost disappears. Over a year of regular shipments, the numbers compound quickly.
Trade agreements also matter beyond duty. Many FTAs include provisions on services, data adequacy, regulatory cooperation, and mutual recognition of conformity assessments. But for most logistics and procurement teams, the duty reduction is the headline benefit.
Full List of UK FTAs in Force
The following table covers the UK’s major bilateral and regional trade agreements currently in force. The UK has also rolled over many smaller agreements from its EU membership era. For the definitive and most current list, check the UK Government’s trade agreements page on GOV.UK.
| Country / Region | Agreement Type | In Force From | Key Sectors Covered |
|---|---|---|---|
| European Union | Trade and Cooperation Agreement (TCA) | 1 Jan 2021 | All goods (zero tariffs, zero quotas on qualifying goods) |
| Australia | FTA | 31 May 2023 | Agriculture, wine, manufacturing, services, digital |
| New Zealand | FTA | 31 May 2023 | Agriculture (dairy, meat), wine, services, digital |
| Japan | CEPA | 1 Jan 2021 | Automotive, digital, financial services, food & drink |
| Canada | Continuity FTA | 1 Apr 2021 | Automotive, agriculture, fish, forestry, manufacturing |
| Mexico | Continuity FTA | 1 Jun 2021 | Automotive, agriculture, manufacturing |
| South Korea | Continuity FTA | 1 Jan 2021 | Automotive, electronics, chemicals, agriculture |
| Singapore | Continuity FTA | 1 Feb 2021 | Electronics, pharmaceuticals, services, digital |
| Vietnam | Continuity FTA | 1 Jan 2021 | Textiles, footwear, electronics, agriculture |
| Switzerland | Trade agreement + MRA | 1 Jan 2021 | Pharmaceuticals, watches, machinery, financial services |
| Norway, Iceland, Liechtenstein | FTA | 1 Dec 2021 | Fish, agriculture, manufactured goods |
| Turkey | Continuity FTA | 1 Jan 2021 | Automotive, textiles, steel, manufacturing |
| Israel | Continuity FTA | 1 Feb 2021 | Technology, pharmaceuticals, agriculture, chemicals |
| Chile | Continuity FTA | 1 Jan 2021 | Copper, wine, fruit, fish |
| Colombia, Ecuador, Peru | Continuity FTA | 1 Jan 2021 | Agriculture, bananas, coffee, flowers, minerals |
| Central America (Costa Rica, El Salvador, Guatemala, Honduras, Nicaragua, Panama) | Continuity FTA | 1 Jan 2021 | Agriculture, textiles, manufacturing |
| CARIFORUM (Caribbean states) | Continuity EPA | 1 Jan 2021 | Sugar, rum, bananas, rice, services |
| Eastern & Southern Africa (Madagascar, Mauritius, Seychelles, Zimbabwe) | Continuity EPA | 1 Jan 2021 | Fish, sugar, textiles, horticulture |
| SACUM (Southern African Customs Union + Mozambique) | Continuity EPA | 1 Jan 2021 | Automotive, agriculture, wine, citrus, minerals |
| Kenya | EPA | 28 Mar 2024 | Tea, coffee, horticulture, textiles |
| Cameroon | Continuity EPA | 1 Jan 2021 | Bananas, aluminium, cocoa, timber |
| Ghana | Continuity EPA | 5 Mar 2021 | Cocoa, aluminium, tuna, horticulture |
| Cote d’Ivoire | Continuity EPA | 1 Jan 2021 | Cocoa, bananas, tuna, rubber |
| Pacific States (Papua New Guinea, Fiji) | Continuity EPA | 1 Jan 2021 | Sugar, tuna, palm oil, timber |
| Jordan | Continuity FTA | 1 Jan 2021 | Textiles, chemicals, pharmaceuticals |
| Morocco, Tunisia | Continuity FTA | 1 Jan 2021 | Agriculture, textiles, automotive components, phosphates |
| Egypt | Continuity FTA | 1 Jan 2021 | Textiles, agriculture, chemicals, energy |
| Georgia | Continuity FTA | 1 Jan 2021 | Agriculture, wine, minerals |
| Moldova | Continuity FTA | 1 Jan 2021 | Agriculture, textiles, wine |
| Ukraine | Continuity FTA | 1 Jan 2021 | Agriculture, steel, minerals, machinery |
| India | FTA | 2025 | Textiles, machinery, pharmaceuticals, services, digital |
| GCC (Gulf Cooperation Council) | FTA | Under negotiation | Energy, petrochemicals, services (not yet in force) |
| CPTPP | Accession | 15 Dec 2024 | Cross-sector (comprehensive market access with 11 Pacific Rim nations) |
Note: The CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) is a significant addition, giving UK businesses preferential access to markets including Malaysia, Brunei, and Chile on terms beyond existing bilateral deals. Entry into force dates vary by CPTPP member as each ratifies the UK’s accession.
The EU-UK Trade and Cooperation Agreement (TCA)
The TCA is the backbone of UK trade policy. The EU remains the UK’s largest trading partner, accounting for around 42% of UK exports and 50% of imports by value.
What the TCA delivers:
- Zero tariffs and zero quotas on all goods that meet the rules of origin.
- A single set of preferential rules of origin, product by product, set out in the agreement’s annexes.
- Provisions on customs cooperation, VAT, and mutual administrative assistance.
What the TCA does not deliver:
- Frictionless trade. Goods moving between the UK and EU still require customs declarations, safety and security declarations, and regulatory checks.
- Automatic preferential treatment. You must actively claim the preference and hold a valid statement on origin.
Claiming preferences under the TCA:
The TCA uses a self-certification system. The exporter (or importer, with sufficient knowledge) makes a “statement on origin” with a prescribed text, which must appear on the commercial invoice or another commercial document that describes the goods in enough detail to identify them.
There is no EUR.1 movement certificate under the TCA. The old EU system of movement certificates does not apply. This catches out businesses accustomed to pre-Brexit EU trade documentation.
For goods to qualify, they must meet the product-specific rule of origin in the TCA’s origin annex. For many manufactured goods, this means sufficient processing must take place in the UK or EU. Cumulation provisions allow UK and EU content to be combined when assessing origin.
DCTS (Developing Countries Trading Scheme)
The DCTS replaced the UK’s Generalised Scheme of Preferences (GSP) on 19 June 2023. It is the UK’s own unilateral preference scheme for developing countries and is more generous than the old GSP in several respects.
The three DCTS tiers:
| Tier | Description | Approximate Number of Countries | Duty Treatment |
|---|---|---|---|
| Comprehensive Preferences | Least Developed Countries (LDCs) | ~46 countries | Duty-free, quota-free on everything except arms and ammunition |
| Enhanced Preferences | Low-income and lower-middle-income countries meeting certain criteria | ~18 countries | Duty-free on a wider range of goods than Standard, reduced rates on others |
| Standard Preferences | Other eligible developing countries | ~7 countries | Reduced tariffs on specific goods |
Key DCTS features:
- Simplified rules of origin compared to many bilateral FTAs, with more generous local content thresholds.
- Cumulation is permitted with the EU, Norway, Switzerland, and Turkey for origin purposes.
- Product graduation applies: if a country becomes highly competitive in a product category, preferences for that category can be suspended.
- Countries “graduate” out of the scheme entirely when they reach upper-middle-income status for three consecutive years.
Common DCTS countries for UK importers: Bangladesh (textiles), Cambodia (garments), Ethiopia (coffee, horticulture), India (Standard Preferences tier, though now largely superseded by the bilateral FTA), Vietnam (though the bilateral FTA may offer better rates on some goods).
To claim DCTS preferences, importers need either a GSP Form A certificate of origin or, increasingly, a statement on origin from a registered exporter (REX) in the exporting country. Check which system applies to the specific country of export.
How to Claim Preferential Rates: Step by Step
Claiming preferences is not automatic. You must take deliberate action at the point of import. Here is the process.
1. Identify the correct commodity code
Get the 10-digit commodity code right. The preferential rate is tied to the code. A wrong classification means the wrong rate, potentially a wrong preference claim, and possible penalties. See the commodity codes guide for detailed guidance.
2. Check whether a trade agreement covers the goods and origin country
Use the UK Global Tariff tool on GOV.UK. Enter the commodity code and origin country. The tool will show the MFN rate and any preferential rate available under an FTA or the DCTS.
3. Verify that the goods meet the rules of origin
This is the critical step most businesses underestimate. You must confirm that the goods satisfy the product-specific origin rule in the relevant agreement. This usually involves one or more of the following criteria:
- Wholly obtained: The goods are entirely grown, harvested, extracted, or manufactured in the originating country (e.g. fresh produce, raw minerals).
- Sufficient processing/working: The goods have undergone enough manufacturing steps in the originating country to qualify. The specific threshold varies by product and agreement.
- Value-added rules: A minimum percentage of the product’s ex-works price must be attributable to originating materials or processing.
4. Obtain the proof of origin
The form of proof depends on the agreement:
- TCA (EU): Statement on origin by the exporter on a commercial document.
- DCTS: GSP Form A or REX statement on origin.
- Most rolled-over FTAs: EUR.1 movement certificate or origin declaration by an approved exporter.
- Australia/New Zealand FTAs: Self-certification by the exporter, importer, or producer.
- CPTPP: Certificate of origin or origin declaration, depending on the partner country.
5. Declare the preference at import
Your customs broker or freight forwarder must enter the correct preference code on the customs declaration. If you handle your own customs clearance, ensure the preference claim is included. You will need a valid EORI number to make any import declaration.
6. Retain records
Keep all proof of origin documents, supplier declarations, and supporting evidence for at least four years (six years for some agreements). HMRC can audit preference claims retrospectively.
Rules of Origin Basics
Rules of origin are the gatekeepers of every trade agreement. Without meeting them, the preferential rate does not apply regardless of what country the goods ship from.
Key concepts:
- Non-originating materials: Materials sourced from countries outside the agreement. These must be sufficiently transformed to confer origin.
- Cumulation: The ability to count materials or processing from partner countries as originating. Bilateral cumulation (between UK and the FTA partner) is standard. Some agreements allow diagonal or full cumulation with additional countries.
- Tolerance/de minimis: Most agreements allow a small percentage (typically 10-15% of the ex-works price) of non-originating materials that do not need to meet the product-specific rule.
- Insufficient processing: Certain basic operations (repackaging, simple assembly, sorting, labelling) never confer origin, regardless of where they are performed.
- Direct transport/non-manipulation: Goods must generally be shipped directly from the originating country to the UK without being altered in transit. Transhipment through a third country is usually permitted provided the goods remain under customs supervision and are not processed.
Supplier declarations are essential for manufacturers who source components from multiple countries. These are written confirmations from your suppliers stating the origin status of the materials they supply. Without them, proving origin at an audit becomes extremely difficult.
Common Mistakes When Claiming Preferences
1. Assuming country of dispatch equals country of origin. Goods shipped from Germany are not necessarily of EU origin. If they were manufactured in China and merely warehoused in Germany, they do not qualify under the TCA.
2. Not checking rules of origin before placing orders. Many businesses only discover their goods do not qualify after the shipment has arrived. Check origin eligibility at the sourcing stage, not at the border.
3. Using the wrong proof of origin document. Each agreement has specific requirements. An EUR.1 is not valid under the TCA. A statement on origin is not valid under agreements that require an EUR.1. Using the wrong document means the preference claim is rejected.
4. Failing to hold supplier declarations. If HMRC audits your preference claims and you cannot produce supplier declarations to back up the origin determination, expect the preference to be denied and a duty demand issued, potentially with interest.
5. Missing validity periods. Most proofs of origin have an expiry date, typically 12 months from issue. Presenting an expired document will result in the claim being rejected.
6. Incorrect commodity codes. If the commodity code on the declaration does not match the goods, the preference claim falls apart. Classification accuracy is the foundation.
7. Not reviewing agreements periodically. FTA terms, tariff schedules, and rules of origin can be updated. Product graduation under the DCTS can remove preferences. Review your exposure at least annually.
FAQ
Do I need to claim a preferential rate, or is it applied automatically?
You must claim it. Preferential rates are never applied automatically by HMRC. The correct preference code must be declared on the customs entry, and you must hold valid proof of origin at the time of import. If you do not claim, you pay the full MFN rate.
Can I claim a preference retrospectively if I forgot at the time of import?
Yes, in most cases. You can submit a C285 amendment request to HMRC within the relevant time limits (generally three years from the date of import) to claim back overpaid duty. You will need to provide the proof of origin and demonstrate that the goods qualified at the time of import. This is a common way to recover significant sums, and it is worth auditing past entries for missed preferences.
What happens if HMRC challenges my preference claim?
HMRC can request verification of the proof of origin with the customs authority in the exporting country. If the origin cannot be verified, or the proof of origin is found to be invalid, HMRC will deny the preference and issue a duty demand for the full MFN rate plus interest. In serious cases involving fraudulent or negligent claims, penalties may also apply.
Which UK trade agreement saves importers the most money?
For most UK businesses, the EU-UK TCA delivers the greatest savings simply because of the volume of UK-EU trade. However, the value depends entirely on your supply chain. If you import textiles from Bangladesh under the DCTS Comprehensive Preferences tier at 0% duty versus an MFN rate of 12%, that single agreement could be your most valuable. Analyse your specific import profile rather than relying on general rankings.
How do I find out which preferential rate applies to my goods?
Use the UK Trade Tariff tool on GOV.UK. Enter your 10-digit commodity code, select the country of origin, and the tool will display all available duty rates including any preferential rates under applicable trade agreements. Cross-reference with the import duty guide for a full walkthrough of how duty is calculated.