UK Trade Deals 2026: Which Countries Get Preferential Import Duty Rates?

How UK trade deals work

Under a free trade agreement (FTA), the UK agrees to reduce or eliminate import duty on goods from partner countries in exchange for similar concessions on UK exports. The duty reduction applies only if the goods meet the rules of origin — proving they genuinely originate in the partner country rather than simply being shipped through it.

When there is no trade deal, goods are subject to the UK Global Tariff — the standard MFN (Most Favoured Nation) rates that apply to all countries without preferential access. MFN rates are applied equally to all non-deal countries, so China and the US pay the same rate as each other.

The UK's main trade agreements in 2026

UK–EU Trade and Cooperation Agreement (TCA)

The UK's most significant trade deal, covering the EU's 27 member states. Under the TCA, goods that originate in the UK or EU can be traded with zero tariffs. However, rules of origin requirements are strict — the goods must genuinely originate in the UK or EU, not simply pass through.

For importers sourcing from EU countries (France, Germany, Italy, Spain, Netherlands, Poland, etc.), this means zero duty — provided your supplier can confirm the goods meet UK-EU origin rules.

CPTPP — Trans-Pacific Partnership

The UK joined CPTPP in December 2024. Members include Japan, Vietnam, Malaysia, Singapore, Australia, New Zealand, Canada, Mexico, Chile and Peru. Duty reductions are phased in over several years depending on the product and member country. This is particularly significant for importers sourcing clothing, footwear and electronics from Vietnam and Malaysia. See our full CPTPP guide for details.

UK–Australia FTA

In force since May 2023. Eliminates tariffs on the vast majority of goods traded between the UK and Australia over a transition period. Immediately zero on many goods from day one; the remaining tariffs phase to zero by 2027–2030.

UK–New Zealand FTA

In force since February 2024. Similar structure to the Australia deal — most tariffs eliminated immediately or phased out within 5–7 years.

UK–Japan CEPA

In force since January 2021. Broadly mirrors the EU-Japan EPA. Eliminates or reduces duty on a wide range of goods including cars, electronics, sake and seafood. Phased reductions continue through the 2020s on some product categories.

UK–Singapore FTA

In force since February 2024. Eliminates tariffs on all goods in both directions. Singapore already had low or zero tariffs on most UK goods under the existing EUSFTA, but the bilateral deal consolidates this.

UK–South Korea FTA

Rolled over from the EU-Korea FTA post-Brexit. Reduces duty on goods including cars, electronics and processed foods. Phase-in reductions continuing through 2026.

UK–Canada TCA

Rolled over from CETA post-Brexit, with interim arrangements in place. Covers most Canadian goods with reduced or zero duty.

DCTS — Developing Countries Trading Scheme

Not a bilateral FTA but a unilateral UK preference scheme replacing the EU's GSP. Provides reduced or zero duty for eligible developing countries in three tiers:

• Enhanced Preferences (EP) — most comprehensive reductions, for least-developed and vulnerable countries (e.g. Bangladesh, Ethiopia, Cambodia, Myanmar)
• Standard Preferences (SP) — broader scheme covering India, Kenya, Ghana, Sri Lanka, Pakistan and many others
• Least Developed Countries (LDC) — zero duty on essentially all goods for countries like Nepal, Tanzania, Mozambique

DCTS is particularly relevant for importers sourcing clothing and textiles from South Asia and sub-Saharan Africa, where MFN duty rates of 12% can be reduced significantly or eliminated.

Country reference table

How to actually claim a preferential rate

Simply sourcing from a country with a trade deal isn't enough. You must follow the correct procedure to claim the preferential duty rate:

Step 1: Confirm your goods qualify under rules of origin

The goods must originate in the partner country according to the agreement's rules of origin. For manufactured goods, this usually means either a "change of tariff classification" rule or a "regional value content" threshold. Ask your supplier to confirm and document the origin eligibility.

Step 2: Obtain proof of origin

Different agreements require different evidence:

• UK-EU TCA: Exporter's statement on the invoice (for exports above €6,000, the exporter must be a Registered Exporter (REX))
• CPTPP: Self-certification by exporter or importer, or a certificate of origin from an approved body
• DCTS: REX statement from a registered exporter, or a GSP Form A certificate for smaller exporters
• UK bilateral FTAs (Japan, Korea, etc.): Origin declaration by approved exporter, or a certificate of origin (EUR.1 or equivalent)

Step 3: Declare the preference on your customs entry

When your customs broker files the import declaration through HMRC's Customs Declaration Service, they must enter the correct preference code and attach or reference the proof of origin. Without this, the system will default to the full MFN rate.

Step 4: Keep records for 4 years

HMRC can audit preference claims up to 4 years after the import. Keep copies of all origin declarations, supplier confirmations and relevant product documentation.

What about goods not covered by the deal?

Even within countries covered by a trade agreement, some goods are excluded from preference or subject to tariff-rate quotas (TRQs). Agricultural goods are frequently excluded or limited. If your specific commodity code isn't covered, you'll pay the MFN rate regardless of the country of origin.

Always check the specific tariff schedule for your agreement and commodity code — don't assume a deal covers your product just because it covers most goods from that country.

Deals in negotiation

As of mid-2026, the UK is actively negotiating or scoping FTAs with:

• India — negotiations ongoing since 2022; a comprehensive deal would significantly improve on current DCTS rates
• Gulf Cooperation Council (GCC) — covering Saudi Arabia, UAE, Qatar, Kuwait, Bahrain, Oman
• Israel — modernisation of existing agreement
• ASEAN countries — exploratory discussions; Thailand and Indonesia not yet covered by any UK deal