UK exit from Europe

In January 2020, the United Kingdom officially left the European Union after voting to leave in 2016. This move ushered in the new era of Brexit with a deal that outlined new rules for living, working and trading between the UK and EU. 5 years later, businesses in the UK and across Europe have made profound adjustments to adapt to new paperwork, customs checks, and regulatory divergence. In this piece, we discuss the rise of bilateral frameworks to address the frictions that have remained in goods trade and explore the opportunities that exist for businesses post-Brexit

The rise of bilateral frameworks post-Brexit

The UK's exit from the EU was motivated by a number of reasons, one of them being not reaping the benefits from the collective trade deals. Post-Brexit, one of the solutions, has been focusing on country-to-country trade agreements and strategic partnerships that meet the nation's interests as a global trading hub. Some of the notable bilateral frameworks include:

● UK–Spain Bilateral Framework

Anchored on the June 2025 Gibraltar deal, which resolved border issues and enabled free movement of citizens between both countries, this agreement now focuses on uniting the two countries regarding trade, innovation, energy, security, education, and culture for the growth of both economies. This framework will be brought to life through annual strategic dialogue between foreign ministers, trade and investment dialogues, joint business forums for SMEs, and working groups on education, science, and labor mobility. This bilateral framework took effect immediately, is non-legally binding, and is terminable with six months' notice.

● UK–India Agreement

The UK and India signed a free trade agreement (FTA) in July 2025 after it was announced in May. The agreement was negotiated at a high political level and described by UK ministers as a major economic prize for the country. Commitments by both countries on regulatory cooperation and mobility in niche professions were made with notable GDP growth forecasted and good trade gains expected over time.

The UK government has also noted this as the biggest and most economically significant new bilateral FTA since leaving the EU. The deal will see tariffs removed on a large share of traded goods between the two countries, with UK exporters, especially those in high-value food & drink sectors, expected to reap the biggest win.

● UK–Australia Free Trade Agreement

Following a year of negotiations between both nations and broad terms of the agreement having been agreed on six months earlier, the Australia–United Kingdom Free Trade Agreement (AUKFTA) was signed in December 2021. This trade deal had goods as the primary focus and resulted in the UK agreeing to have almost 99% of Australian goods enter the UK duty-free. Additionally, the UK made concessions on agriculture rules and quotas to secure better access for other sectors in this bilateral framework.

● UK–Japan Comprehensive Economic Partnership Agreement (CEPA)

CEPA was the UK's first major trade deal post-Brexit. It was signed in 2020 and set the foundation for future bilateral frameworks. This agreement saw both countries negotiate and agree on reduced tariffs, including new rules on regulatory cooperation, and highlighted services and digital trade as priority sectors for the UK.

Opportunities for businesses post-Brexit

● Green energy transition and cross-border projects

After leaving the EU, the UK set its Net Zero target, aiming to cut emissions to zero by 2050. Pair this with the European Green Deal, the EU's main plan to make its economy sustainable and climate-neutral by 2050, and you get an environment that prioritizes investment in renewables, hydrogen, and grid upgrades.

This environment is highly welcoming to public-private partnerships to attract EU funds and UK investors seeking long-term returns. The recently established UK–Spain Bilateral Framework has also highlighted joint green projects and energy security, creating numerous opportunities for businesses in offshore wind, hydrogen technology, and cross-border power links.

● Capitalize on the nearshoring trend

Since the pandemic and thanks to the current geopolitical uncertainties, companies are looking to shorten and diversify their supply chains. These factors make the UK a great contender for becoming the ideal planning and manufacturing hub for European firms. According to a McKinsey report, companies are now investing in nearer and more resilient suppliers compared to distant single-source chains. This shift creates opportunities for businesses in the UK to thrive, especially in the manufacturing and supply of time-sensitive products.

● Digital trade and services

Even after Brexit, London remains the fintech capital of Europe. To adapt to the changing landscape, fintech firms accelerated innovation and adoption of alternative cross-border payment systems to avoid trade frictions. This niche in digital payment solutions has exploded and continues to grow, with numerous industries benefiting. As a service, the business opportunities are limitless, with the majority of markets remaining untapped. Industries such as iGaming are big beneficiaries of cross-border payment solutions, with products such as Skrill casinos gaining popularity due to safe and secure payments for global customers.

Brexit is not being reversed, and what seemed like a doom sentence has otherwise resulted in pragmatism and innovation. While businesses now have to adhere to new compliance and regulations, these new trade agreements promise new opportunities for businesses to thrive.