Free Trade Agreements (FTAs) are more than tariff cuts; they open doors to new markets, reduce costs, and create frameworks for collaboration in sectors where the UK leads globally: advanced manufacturing, digital services and green technologies to name just a few. Two agreements in particular – at different stages – demonstrate the opportunities for growth afforded to UK businesses: the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and our new free trade agreement with India (CETA).
A gateway to the Indo-Pacific
Last December the UK joined CPTPP, a dynamic trade bloc that spans Asia-Pacific and the Americas which includes Australia, Brunei, New Zealand, Chile, Peru, Japan, Singapore, Malaysia and Vietnam. Canada and Mexico’s ratification of the UK’s accession to CPTPP is pending, which means UK businesses can’t trade with these markets under the agreement yet.
What does this mean for you? CPTPP removes tariffs on over 99% of UK goods exports to CPTPP markets over time. It also sets modern rules for services, investment and digital trade – areas where the UK excels. Its chapters on e-commerce, data and intellectual property make it one of the most progressive trade agreements and support the UK’s position as a services superpower and a digital innovation hub.
For the first time, UK firms gain preferential access to Malaysia and Brunei – fast-growing economies with rising demand for the high-quality goods and services the UK has to offer. Beyond tariffs, CPTPP simplifies customs processes and supports business mobility, making it easier to build partnerships across the Indo-Pacific. To learn more about CPTPP and the commercial opportunities that may await, visit the agreement page on business.gov.uk.
Furthermore, CPTPP is a “living agreement”, designed to expand and adapt. Costa Rica is already negotiating accession, and the UK is actively shaping the bloc’s evolution through institutional reviews. Commencement of accession negotiations for Uruguay was announced in November 2025, with accession processes anticipated for the UAE, Indonesia and the Philippines in 2026, if appropriate. This means UK businesses benefit not only now but as CPTPP grows and responds to emerging trade priorities.
A landmark deal with an economic giant
More recently, the UK signed a Comprehensive Economic and Trade Agreement (CETA) with India on 24 July 2025 – a transformative deal with the world’s 4th largest economy. Once ratified, it is expected to boost UK GDP by £4.8 billion and bilateral trade by £25.5 billion annually in the long run.
The tariff cuts are game-changing: Scotch whisky duties fall from 150% to 75% immediately and to 40% over ten years, while car tariffs drop from up to 100% to 10% under a quota. Tariff cuts will make UK products – from spirits and cars to machinery and textiles – far more competitive in India. UK consumers will also benefit from lower prices on Indian imports.
This agreement will also strengthen the already strong services trade relationship between the UK and India by guaranteeing market access and making it easier for service suppliers to trade and for professionals to operate in each other’s countries.
Whilst the FTA is not yet in force, and we expect ratification in 2026, now is the time for UK businesses to prepare for opportunities in India. If you’re a goods exporter, in early 2026 pre-registration for HMRC’s authentication portal will open; registration is a requirement for exporting under the UK-India FTA preferential tariffs. Take the time to look up the new tariff rates your products will benefit from and what the rules of origin will require for you to qualify. DBT is also drafting practical guides for businesses covering provisions such as customs and procurement as well as sector-specific information. These will go live on business.gov.uk closer to implementation of the agreement.
The UK’s trade strategy is clear: open markets, strengthen industrial competitiveness and create opportunities for businesses of all sizes. These FTAs are tools to achieve that, but the benefits firms stand to gain won’t realise themselves. That’s why the Department for Business and Trade is putting in place the policies, support and services needed to drive export-led business growth. For example, for the first time, DBT has integrated its support for business in a single, accessible place – the Business Growth Service – designed to help businesses across the UK start, scale and succeed globally. From tailored market advice and free Business Academy training to UK Export Finance and our on-the-ground network around the world, we are making it easier for businesses to navigate global markets, seize opportunities and build resilience.
The UK is opening up new global opportunities for its businesses. By joining dynamic trade blocs, signing new agreements and negotiating further deals – such as with the Gulf Cooperation Council and the Republic of Korea – we are making it easier for them to access overseas markets, benefit from lower tariffs, explore new partnerships and grow.
