Over the past few years, the government has prioritised securing trade agreements and exploring investment opportunities globally to capitalise on its newfound independence. This document outlines the key aspects of the UK's post-Brexit trade strategy and examines potential investment opportunities created by these changes.

Shaping Global Trade Relationships

Post-Brexit, the UK has sought to assert itself as a standalone global trading power. Key to this strategy is the government's effort to establish new bilateral and multilateral agreements while reinforcing its relationships with existing trade partners.

Key Post-Brexit Trade Deals

Free Trade Agreements (FTAs)

The UK has signed over 70 trade deals, replicating many of the agreements it had as an EU member while expanding uniquely tailored ones, particularly with countries such as Japan, Australia, and New Zealand. Notably, the UK-Japan Comprehensive Economic Partnership Agreement (CEPA) serves as an upgrade of the EU-Japan deal, incorporating additional benefits for financial services and digital economies, two critical sectors for the UK.

The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP)

The UK’s application to join this major Asia-Pacific trade bloc signifies its ambition to tap into rapidly growing economies and reduce dependence on EU markets. Increased access to markets like Canada, Japan, and Australia could be highly strategic.

US Trade Relationship

While a formal UK-US trade deal remains elusive, advances have been seen in state-level agreements, particularly in mutually advantageous areas like technology and energy.

Strengthening Commonwealth Trade Ties

Rekindling trade relationships within the Commonwealth nations has been another pillar of the UK’s strategy. Agreements with countries like Canada and India offer opportunities to deepen trade connections steeped in shared history and existing cultural ties.

Focus on Digital Trade

The UK has demonstrated particular interest in leading the charge in digital trade, evidenced by provisions in FTAs involving data sharing, cybersecurity, tech innovation, and digital services. For example, the digital trade agreement with Singapore sets critical standards for cross-border data flows and financial technology operations.

Investment Opportunities in Post-Brexit Britain

High-Growth Sectors

Clean Energy and Sustainability: The UK is promoting its green industrial revolution with investments in wind farms, hydrogen solutions, and EV technology. Post-Brexit freedoms have allowed streamlined legislation and incentives such as freeports.

Financial Services and Fintech: Despite changes in EU market access, the UK’s leadership in fintech and insurtech continues to attract investment, bolstered by agreements with Singapore and Japan.

Advanced Technology and Artificial Intelligence (AI): Newly secured trade provisions open doors in AI, data analysis, and robotics, benefiting from the UK’s thriving tech ecosystem.

Life Sciences and Pharmaceuticals: Trade liberalisation offers R&D partnerships in vaccines and biomedicine, reinforcing the UK as a health-tech innovation hub.

Beyond Business Hubs

The government’s levelling-up agenda directs funding to cities in the North and Midlands for transport, education, and innovation projects, diversifying investment regions beyond London.

Challenges to Consider

Complex regulatory frameworks, ongoing EU negotiations such as the Northern Ireland Protocol, and geopolitical uncertainties including pandemic aftereffects and Russia-Ukraine tensions must be factored into risk analyses.

Positioning for Success Post-Brexit

The UK's post-Brexit strategy offers global connectivity and sector innovation. Businesses and investors will benefit from careful planning and robust partnerships. For tailored advice on leveraging these avenues, get in touch with our expert team.