Logistics sits at the heart of global trade and whether you’re importing raw materials or expanding into new export markets, understanding Free Trade Agreements (FTAs) is essential for building a competitive, future-ready supply chain.
As we entered the summer months (and – for many in logistics – start advance preparations for meeting the demands of the peak festive season), the UK and Cooperation Council for the Arab States of the Gulf (GCC) announced the successful conclusion of negotiations for a new free trade agreement between them.
“While geopolitical tensions across the Middle East remain an important consideration operationally, this agreement sends a strong signal that the UK is continuing to prioritise international trade relationships and global market access,’ says Associate Director of Air Freight, Sarah Powell.
“The agreement is a significant milestone, but businesses should be aware that it will not come into force immediately. The deal must still go through a number of legal, regulatory and parliamentary scrutiny processes in both the UK and GCC member states before it is formally ratified and implemented.
“In the meantime, businesses have an important window in which to review their supply chains, customs processes and export strategies so they are well placed to take advantage of emerging opportunities once the agreement becomes active.”
Join us in finding out more about Free Trade Agreements, how they work and how your business could benefit!
What is a Free Trade Agreement?
A Free Trade Agreement or ‘FTA’ is a legally binding deal between two or more countries to reduce or remove tariffs, quotas and/or other barriers that might slow down or increase the cost of cross-border trade.
Though they don’t remove all trade restrictions, by reducing or eliminating some barriers to international trade, FTAs promote economic cooperation by creating a more efficient and predictable trading environment – meaning easier market access for those navigating customs, compliance and their associated costs.
Who does the UK currently have an FTA with?
Since the leaving the EU in 2020 after the Brexit referendum, the UK government has developed an extensive network of trade agreements. Currently, as of 2025-2026, the UK has approximately 40 such agreements with 70 different countries alongside its foundational Trade and Cooperation Agreement with the EU.
Alongside the many agreements (with countries such as South Korea, Switzerland and Canada) rolled over from before Brexit, key agreements include:
- UK-EU Trade and Cooperation Agreement (TCA)
- UK-Japan CEPA
- UK-Australia and UK-New Zealand FTAs
- UK-India
- CPTPP membership – opening access to markets across Asia-Pacific (including Canada, Japan, Vietnam and Mexico)
What are the benefits of FTAs?
FTAs deliver several clear advantages for businesses from both a commercial and logistical perspective.
- Improved market access
- Reduced costs and improved margins through reduced tariffs
- Greater supply chain flexibility due to companies being able to more easily diversify their procurement and distribution strategies
- Reduced delays and friction at borders due to more streamlined customs processes
What opportunities do FTAs offer?
When leveraged correctly, Free Trade Agreements can transform a supply chain – enabling new lanes by removing barriers to trade, driving competitiveness and improving resilience to the threats posed by a volatile global market. Too often however, companies can risk overlooking preferential rates due to not fully understanding the rules of origin or the documentation required to claim them.
From a logistics perspective, this knowledge gap is where industry expertise becomes critical. Understanding how to effectively route freight, structure shipments and manage compliance within FTA requirements can unlock real commercial value for businesses.
How can a freight forwarder like Baxter Freight help customers leverage FTAs?
Eliminating trade barriers through Free Trade Agreements aren’t just about evolving policy decisions. They represent practical tools that directly shape how goods are moved across the world; dramatically impacting not only the economic growth and stability of those working in international freight but also that of the countries involved.
At Baxter Freight, we are here to provide expert insights on sourcing, customs, and finding ways to maximise your business’ competitive advantage within its supply chain.
As a multimodal logistics provider that covers air freight, sea freight, road and rail alongside dedicated customs expertise, our team is connected globally to ensure you receive the fastest, most reliable, most tailored service to fit your bespoke needs.
