The International Trade Secretary has signed a free trade agreement with Singapore, unlocking billions of pounds for British businesses and paving the way for a new era of trade with Asia.
Since leaving the EU, the Government have made securing modern and bespoke trade deals one of our top priorities. These deals will help us build back better and level up opportunities and prosperity in every part of the UK.
The Government have now agreed a free trade agreement with Singapore, the UK’s largest trading partner in South-East Asia, which will provide a gateway to Asia for UK businesses and lock in the benefits of our existing trading relationship, worth more than £17 billion last year.
The International Trade Secretary will now travel to Vietnam to conclude another agreement, which will also maintain an important trading relationship that has tripled between 2010 and 2019 in nominal terms to £5.7 billion. 99% of tariffs will be eliminated after seven years, including on machinery and pharmaceutical products, our top exports to Vietnam.
International trade will help us to overcome the challenges of coronavirus and drive economic growth across the whole United Kingdom.
Digital Economy Agreement (DEA)
International Trade Secretary Liz Truss and Singaporean counterpart, also announced their intention to launch negotiations for a ground-breaking DEA. This would be the first DEA that Singapore has struck with a European country.
This agreement would enable the UK to become a hub for digital trade with strong connections to Asia, cutting red tape for UK businesses and setting global standards in key areas such as cyber-security and emerging technology.
This follows the launch of the UK’s first Digital Trade Network in Asia Pacific, to increase digital trade and investment opportunities and to forge new digital partnerships in the region, helping more British businesses export digitally.
Singapore and the UK are both global leaders in the digital economy and 70% of UK services exports were delivered remotely to Singapore last year, worth £3.2 billion.
Trans-Pacific Partnership (CPTPP)
The agreements with Singapore and Vietnam mark another step towards the UK joining the Trans-Pacific Partnership, which accounted for 13% of global GDP in 2019, rising to 16% if the UK were to join.
Both economies are founding members CPTPP and have publicly shown their support for the UK acceding to this fast-growing trade bloc. Joining would provide British businesses with an unparalleled gateway to the Pacific region.
UK’s Ongoing Success
In under two years we have agreed trade deals with 57 countries that account for £193bn of UK bilateral trade. This is unprecedented. No other country has ever negotiated so many trade deals simultaneously. The Government’s ambition is to secure free trade agreements with countries that cover 80% of UK trade within three years.
For any more information on the Singapore and Vietnam trade deals, please visit: https://www.gov.uk/government/news/uk-strikes-singapore-and-vietnam-trade-deals-start-of-new-era-of-trade-with-asia.
