Last week, the UK finalised two significant trade agreements—one with India and another with the United States—marking a step forward in its post-Brexit global trade strategy.

On May 6, the UK and India concluded a long-anticipated free trade agreement after more than three years of negotiations. Touted as the UK’s most comprehensive trade deal since leaving the European Union, the pact is expected to boost bilateral trade by £25.5 billion by 2040.

Key elements include eliminating tariffs on 90% of UK exports to India, benefiting whisky, machinery, and food sectors. The deal also simplifies regulations for UK businesses operating in India, offering improved market access and reducing bureaucratic hurdles.

Just two days later, on May 8, the UK signed a separate agreement with the United States aimed at strengthening industrial and agricultural trade, but without a reduction in the 10% base duty rate that Trump has applied to the majority of UK products.

The US agreed to scrap tariffs on British steel and aluminium and significantly cut duties on UK car exports—from 27.5% down to 10% on up to 100,000 vehicles annually.

In return, the UK will lift tariffs on US ethanol and beef import quotas. While the agreement is seen as a win for British automotive and aerospace sectors, it has sparked concerns about increased US competition.

Some details in the US agreement are still being finalised and the team at Multifreight is closely monitoring developments.