In an increasingly fragmented global economy, the ability to reach new customers, diversify supply chains and operate with greater certainty is going up the boardroom priority list.
The UK’s new generation of free trade agreements (FTAs) offers British businesses an important first-mover advantage in some of the world’s most dynamic and fast-growing markets.
Take, for example, the Comprehensive and Progressive Agreement for Trans-Pacific Partnership – or the slightly pithier CPTPP. When the UK joined CPTPP in December 2024, it became the first European country to enter a trading bloc spanning Asia-Pacific and the Americas. The UK’s membership saw it gain preferential access to nine member markets from the outset. With Mexico and Canada subsequently ratifying the UK’s accession, the agreement is now fully in force across all 11 other members, opening access for UK businesses to economies collectively worth almost £10 trillion.
The benefits of trade agreements are measured over the long run, but the broad trade picture with CPTPP members is encouraging. The latest figures show that in the four quarters to the end of Q1 2026, total UK exports to CPTPP amounted to £86.3 billion – an increase of 8.1% compared to the four quarters to the end of Q1 2025.
While trade growth cannot be attributed to the agreement alone, CPTPP provides firms with a stronger platform for sustaining it. Businesses can benefit from lower tariffs, more flexible rules of origin, better access to services and procurement markets, and modern rules supporting digital trade.
The opportunity is not simply to sell more of the same products. CPTPP allows companies to think differently about where they source components, how they structure regional supply chains and how they serve customers digitally. For senior leaders, it should therefore inform decisions on market entry, investment and long-term resilience, not sit solely with customs or compliance teams.
The UK’s agreement with India provides an even sharper example of first-mover advantage. The FTA entered into force on 15 July 2026, with British firms benefitting from over £400m of tariff reductions on day one of the agreement. Meanwhile, businesses in the United States and the European Union must wait for their respective agreements with India to complete the negotiation and ratification process before accessing comparable benefits.
The prize is considerable. UK exports to India were worth £20.2 billion in the 12 months to March 2026, up 14.1% on the previous year, and it is estimated the FTA will increase UK exports to India by nearly 60% in the long run. Businesses that establish partnerships, distribution channels and brand recognition now could gain an advantage before international competitors receive comparable preferential access.
More opportunities are on the horizon. The UK is the first G7 country to conclude a comprehensive FTA with the Gulf Cooperation Council, offering new possibilities across six major Gulf markets. Meanwhile, the enhanced agreement with Switzerland is expected to unlock £5.2 billion a year in additional UK services exports in the long run. The new, upgraded agreement with South Korea protects preferential access across 98% of tariff lines and is expected to increase UK services exports by some £400 million.
These agreements have huge potential to support growth in every nation and region of the UK, but only when businesses use them. The strategic question for leaders is therefore straightforward: where could the UK’s new trading relationships reduce costs, strengthen resilience or create a head start in fast-growing markets?
- Further information can be found at export support for UK businesses
