Does the UK Have a Trade Agreement with Italy?
As the United Kingdom (UK) continues to navigate post-Brexit trade deals with countries around the world, many people are wondering if the UK has a trade agreement with Italy, one of the largest economies in Europe. Let`s delve into the topic and shed some light on the current situation.
Firstly, it`s important to note that before Brexit, the UK was part of the European Union (EU), which meant that it had access to the EU`s common market. As a result, any trade deals that the EU had with third-party countries, including Italy, applied to the UK as well. However, after the UK left the EU on January 31, 2020, it had to negotiate its own trade agreements with countries around the world.
So, to answer the question, at present, the UK does not have a trade agreement with Italy. However, negotiations between the two countries are ongoing.
In March 2021, the UK and Italy signed a Memorandum of Understanding (MoU) to strengthen economic cooperation and establish a bilateral dialogue on trade and investment. The MoU recognizes the importance of the UK and Italy`s trade and investment relationship and outlines ways to enhance it in the future. The document also highlights the shared commitment of the UK and Italy to free trade, fair competition, and sustainable economic development.
While the MoU is not a formal trade agreement, it`s an essential step towards establishing a closer relationship between the UK and Italy. The MoU provides a framework for future discussions on potential trade agreements and investment opportunities that could benefit both countries.
It`s worth noting that the UK and Italy have a long-standing trade relationship, and Italy is one of the largest markets for British goods and services. In 2019, the UK exported goods worth £8.4 billion to Italy, including machinery, chemicals, and pharmaceuticals, while importing goods worth £10.6 billion from Italy, including machinery, food, and cars.
In conclusion, the UK does not have a formal trade agreement with Italy at present. Still, negotiations between the two countries are ongoing, and the recently signed MoU is a positive step towards a closer trade and investment relationship. It`s crucial to keep an eye on any developments in this area as a trade agreement between the UK and Italy could have significant implications for businesses and consumers in both countries.