Research and analysis

UK-Australia, UK-New Zealand and UK-Japan FTAs monitoring report – executive summary

Published 29 January 2026

Background

This monitoring report provides a structured overview of the implementation and utilisation of the UK’s free trade agreements (FTAs) with Australia, New Zealand and Japan. It looks at the first 2 years since entry-into-force (EIF) for the agreements with Australia and New Zealand and the first 4 years since EIF of the Japan Comprehensive Economic Partnership Agreement (CEPA).

It meets the commitment, as set out in the respective impact assessments for these agreements, to publish monitoring results that show how they are operating in practice. In publishing this report, the government reaffirms its commitment to transparency, accountability and evidence-led trade policy, as set out in the Trade Strategy. 

Report scope, purpose and data sources

Monitoring is distinct from evaluation in both scope and purpose. Monitoring of FTAs in their early years focuses on their implementation and general functioning (for example, how their provisions and institutional mechanisms are operating in practice) and on gathering early insights on uptake among businesses. It does not attempt robust assessment of the medium- to long-term impact and effectiveness of FTAs. That is the purpose of evaluation conducted in an FTA’s later years and is therefore beyond the scope of this report.

This report draws on a combination of UK national statistics, international trade data, and customs administrative data. All figures are non-seasonally adjusted and presented in current prices. Data should be interpreted in light of seasonal variations and global economic conditions. All statistics are up to date as of the 22 January 2026. Further information on data sources used and analytical caveats are in the Technical Annex.

Trade flows are inherently volatile in the short term and influenced by commercial, seasonal, and macroeconomic factors and the impacts of FTAs can take time to materialise. As such, this report focuses on implementation indicators rather than attempting to robustly determine the FTAs’ effects on trade flows. The findings of this report will inform the design of future evaluations.

Executive Summary

Since the UK-Australia FTA entered into force on 31 May 2023:

• total trade growth with Australia has outpaced total trade with the world, up 14.3% in the 12 months to June 2025 when compared to the 12 months to June 2023 while UK total trade with the world increased by just 0.02%^{[footnote 1]}
• UK exports of services to Australia have been particularly strong (+25.3%) in the 12 months to June 2025 when compared to the 12 months to June 2023, led by substantial increases in exports of other business services (+41.7%) and financial services (+55.2%)^{[footnote 2]}
• goods exports to Australia (excluding unspecified goods) have fallen (-16.3%) in the 12 months to June 2025 when compared to the 12 months to June 2023.^{[footnote 3]} Goods imports from Australia (excluding unspecified goods) have also decreased (-4.8), but by less than imports from the world (-7.0%)^{[footnote 4]}
• imports of beef from Australia are still a small proportion of total UK beef imports in the 12 months to May 2025 when compared to the 12 months to May 2023—comparable to 2012 to 2016 levels—but have increased in the 12 months to May compared to the 12 months to EIF (rising from 700 to 7,200 metric tonnes), with this increase partially offset by decreased imports from the EU^{[footnote 5]}
• between June 2023 and December 2024, 65.9% of eligible UK exports to Australia^{[footnote 6]} and 77.3% of eligible imports from Australia utilised the FTA’s preferential tariffs^{[footnote 7]}, equivalent to estimated tariff savings of £89 million on UK exports^{[footnote 8]} and £139 million on UK imports^{[footnote 9]}

Since the UK-New Zealand FTA entered into force on 31 May 2023:

• UK-New Zealand trade has grown (+19.7%) in the 12 months to June 2025 when compared to the 12 months to June 2023, while total trade with the world grew 0.02%, however the increase since 2018 (pre-COVID-19) is less than the growth in the UK’s trade with the world^{[footnote 10]}
• UK export growth has been driven by large increases in UK services exports to New Zealand (+42.7%) in the 12 months to June 2025 when compared to the 12 months to June 2023, mostly driven by growth in other business services (+200.0%) and travel services (+34.0%)^{[footnote 11]}
• goods exports (excluding unspecified goods) have fallen (-29.2%) in the 12 months to June 2025 when compared to the 12 months to June 2023, and are still lower than 2018 levels (-13.6%),^{[footnote 12]} while goods imports from New Zealand have increased (+23.4%), driven by imports of food and live animals^{[footnote 13][footnote 14]}

• imports of sheepmeat in the 12 months to May 2025 when compared to the 12 months to May 2023 have increased from 26,800 to 40,900 tonnes,^{[footnote 15]} however imports are still below 2018 levels and have been below the 90% quota fill rate necessary to use preferential quotas for 2023, 2024 and 2025^{[footnote 16]}

• between EIF and December 2024, 80.7% of eligible UK exports to New Zealand^{[footnote 17]} and 82.6% of eligible imports from New Zealand^{[footnote 18]} utilised the FTA’s reduced tariffs, equivalent to estimated tariff savings of £9.3 million on UK exports^{[footnote 19]} and £67 million on UK imports^{[footnote 20]}

For the UK-Japan CEPA:

• in the 12 months to June 2025, when compared to 2018, UK total trade with Japan has increased (+13.0%), but lags UK trade with the world over the same period (+31.7%)^{[footnote 21]}
• UK services exports to Japan have grown since 2018 (+30.2%) but are behind UK-world growth (+63.5%) over the same period^{[footnote 22]}
• goods exports to Japan (excluding unspecified goods) have increased since 2018 (+5.8%) mirroring an increase in goods exports to the world (+6.9%). The largest increases in goods exports to Japan were in chemicals (+37.8%), material manufactures (+43.2%) and crude materials (+211.5%)^{[footnote 23]}
• between 2022 and 2023, 63.0% of eligible UK exports to Japan utilised preferential tariff rates, resulting in estimated duty savings of £58 million.^{[footnote 24]} Between 2023 and 2024, 73.9% of eligible UK imports from Japan utilised preferential tariff rates, resulting in significant estimated duty savings of £311 million^{[footnote 25]}

For more detailed findings on each FTA see the key messages in sections A, B and C of the PDF.

1. Office for National Statistics (ONS) UK total trade: all countries, non-seasonally adjusted, April to June 2025.  ↩

2. ONS UK trade in services: service type by partner country, non-seasonally adjusted, January to March 2025.  ↩

3. ONS Trade in goods: country-by-commodity exports, November 2025. ↩

4. ONS Trade in goods: country-by-commodity imports, November 2025. ↩

5. HMRC Overseas Trade Statistics by Country of Origin, November 2025 ↩

6. Department for Business and Trade (DBT), Australia-UK Free Trade Agreement Joint Committee Statement - GOV.UK, June 2025. ↩

7. DBT calculations using HMRC Import by Preference, November 2025. ↩

8. DBT, Australia-UK Free Trade Agreement Joint Committee Statement - GOV.UK, June 2025. ↩

9. DBT calculations using HMRC Import by Preference, November 2025.  ↩

10. Office for National Statistics (ONS) UK total trade: all countries, non-seasonally adjusted, April to June 2025.  ↩

11. ONS UK trade in services: service type by partner country, non-seasonally adjusted, January to March 2025.  ↩

12. ONS Trade in goods: country-by-commodity exports, November 2025. ↩

13. ONS Trade in goods: country-by-commodity imports, November 2025. ↩

14. This refers to the Standard International Trade Classification (SITC) 1-digit sector, imports of live animals at the 2-digit level were less than 0.01% of these imports in the 12 months to June 2025. ↩

15. HMRC Overseas Trade Statistics by Country of Origin, November 2025.  ↩

16. DBT, UK trade quotas, January 2026. ↩

17. DBT, Joint trade statement between New Zealand and United Kingdom - GOV.UK, May 2025. ↩

18. DBT calculations using HMRC Import by Preference, November 2025. ↩

19. DBT, Joint trade statement between New Zealand and United Kingdom - GOV.UK, May 2025. ↩

20. DBT calculations using HMRC Import by Preference, November 2025. ↩

21. Office for National Statistics (ONS) UK total trade: all countries, non-seasonally adjusted, April to June 2025.  ↩

22. ONS UK trade in services: service type by partner country, non-seasonally adjusted, January to March 2025.  ↩

23. ONS Trade in goods: country-by-commodity exports, November 2025. ↩

24. Ministry of Foreign Affairs for Japan, Exchange of import statistics in 2023 based on Article 2.31 of the Japan-UK Comprehensive EPA. ↩

25. DBT calculations using HMRC Import by Preference, November 2025. ↩