The United Kingdom negotiates FTAs with South Korea, Switzerland, and Turkey to expand its trade in goods and services with these three nations.
As set out in the Trade Strategy, the United Kingdom is negotiating an enhanced FTA with the Republic of Korea to modernize our trade relationship and deepen our strategic partnership.
United Kingdom negotiates FTAs
The UK’s GDP grew by 1.1% in 2024, and the International Monetary Fund (IMF) estimates that it increased by 1.3% in 2025 and projects that it will also rise by 1.3% in 2026.
In the United Kingdom, headline inflation, which began to pick up in 2024, is expected to continue to rise in 2025, partly due to changes in regulated prices. According to the IMF, this is projected to be temporary, as labor market slack and wage growth moderation will eventually help bring inflation back to target by the end of 2026.
The British government is seeking new digital trade commitments focused on facilitating, streamlining, and lowering the cost of trade for UK and South Korean companies. From its perspective, a new chapter in the FTA on Rules of Origin, with facilitating Product-Specific Rules (PSRs), will help secure the future of goods trade for both economies.
The United Kingdom is a country that is highly open to international trade, with total trade (exports + imports) equivalent to 62.8% of its GDP, reflecting strong integration into global markets.
Services
The UK government is negotiating an enhanced FTA with Switzerland to reflect trade in services between the two countries. This could include an agreement in areas such as market access, digital trade, and mobility.
In addition, the government is seeking to negotiate a modernized FTA with Turkey that reflects the UK’s overall trade policy objectives. This includes strengthening provisions on services and digital trade, with possible sectoral coverage in areas such as financial services, telecommunications, and legal services.
Where appropriate, the UK will also seek to leverage existing goods trade agreements. Negotiations are ongoing and further details will be provided in due course.