Scotland`s Trade Agreements: What You Need to Know

Scotland, a country with a population of about 5.5 million, is a significant player in international trade. Although it is a part of the United Kingdom, Scotland has its own distinct economy and trading relationships. With Brexit and the pandemic shaking up the global economy, it`s essential to understand Scotland`s trade agreements and their impact on the country`s economic growth.

Trade agreements are formal agreements between countries that eliminate or reduce tariffs, various trade barriers and promote trade and investment. Scotland has trade agreements with both the European Union and countries outside the EU. The EU has been Scotland`s largest trading partner, accounting for 43.7% of their international exports and 40.1% of their imports in 2018.

However, since the UK`s exit from the EU, Scotland`s position has changed. Although the UK has signed a trade deal with the EU, Scotland`s access to the single market has become limited. This means that Scottish businesses now face trade barriers and increased tariffs when exporting to the EU. Therefore, the Scottish government is exploring new ways to expand Scotland`s trading relationships with other countries worldwide.

To accomplish this, Scotland has started to engage in bilateral trade agreements with key partners outside the EU. The Scottish Parliament has also developed the Scottish Export Growth Plan to promote economic growth through expanding Scotland’s international trade and investment. As part of this plan, Scotland aims to increase its exports from 21.7% of GDP to 25% of GDP by 2029.

One of the prominent trade agreements Scotland recently signed is the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). The CPTPP is a regional trade agreement involving eleven countries, including Canada, Japan, Australia, and New Zealand. This trade agreement provides Scottish businesses with access to a market of over 500 million people and a GDP of around $13.5 trillion. The Scottish government believes the CPTPP will help diversify Scotland`s economy, reduce dependence on the EU, and provide new export opportunities for Scottish businesses.

Another significant trade agreement under negotiation is the UK-USA trade deal. This deal could provide Scottish businesses with access to the world`s largest economy. However, it`s essential to note that trade agreements can take years to negotiate and reach an agreement. Also, Scottish businesses must not compromise product quality and standards in the pursuit of new market opportunities.

In conclusion, Scotland`s changing economic position calls for a more deliberate approach to international trade. Scotland`s access to the EU single market has been curtailed, but the country is taking positive steps to promote economic growth by signing significant trade agreements outside the EU. Scottish businesses must understand these trade agreements and take advantage of the opportunities they provide while avoiding potential risks. The Scottish government must continue to prioritize the development of trade agreements that support business growth and secure Scotland`s economic future.