Guide

UK bilateral trade relations

UK trade relations with the North America Free Trade Agreement area

There are many opportunities for UK businesses in each of the markets of the North America Free Trade Agreement (NAFTA) - US, Canada and Mexico. The UK has bilateral trade relations with all three countries individually, as well as through the European Union (EU).

There is already significant UK investment and trade with the NAFTA countries. You may find that a simple and cost-effective way to start trading is through these businesses. Also, as the NAFTA countries are aiming to increase measures to combat climate change, there are new opportunities in environmental business.

Read more about NAFTA rules.

NAFTA is a complex and highly integrated regional market, and much manufacturing has relocated to Mexico since NAFTA was launched in 1994. This has resulted in rising prosperity in Mexico and the development of the consumer market.

One third of NAFTA trade is concentrated in the automotive, energy and agriculture sectors, which are badly affected by the present economic crisis. The benefits of NAFTA have been unevenly spread, and all three countries involved want to revise parts of the agreement.

The three countries also have individual bilateral free trade agreements with other countries. Mexico has a free trade agreement with the EU, and Canada is also negotiating for this. The US and EU have a free trade dialogue.

Read our detailed country-specific profiles.