The year 2025 has marked a turning point in the UK’s post-Brexit trade transition. While headlines spotlight whisky and cars, these deals carry a deeper meaning for key UK sectors. Behind the tariff figures lies a critical question about the UK’s competitive edge in biopharma, protection of intellectual property and securing a resilient supply chain for medical technology. With the NHS under pressure and the global competition for innovation heating up, the structure and content of these trade agreements are essential in shaping British healthcare. This blog explores three important deals including the UK-India Deal, the CPTPP Agreement and the UK-US Economic Prosperity Agreement.
US-UK Economic Prosperity Agreement
The 2025 US-UK mini deal, formally known as the Economic Prosperity Agreement, represents a cautious step forward in bilateral cooperation, particularly in pharmaceutical, agricultural and digital services. As the media reports, the Economic Prosperity Agreement is one of a kind and it marks a historic event in the economic partnership between the two countries. The Agreement expresses a mutual intention to negotiate ‘significantly preferential treatment’ for pharmaceuticals and pharmaceutical ingredients, potentially paving the way for streamlined regulatory processes and faster market access of UK-made medicines and devices into US markets.
The deal supports the UK automotive industry, with the commitment to ease tariffs and streamline certification processes for British vehicles entering the US market. This is welcomed by the industry facing increased competition in the post-Brexit world. This will save thousands of jobs across the UK, as such industry remains key to regional economic development. The deal also supports eased restrictions on beef exports, reopening access to the US markets for British producers. The new provisions could boost British agriculture by allowing high-quality UK beef to enter a lucrative consumer market.
The Economic Prosperity Agreement opens a great opportunity for UK-based drugmakers, biotech firms and MedTech innovators to enter the world’s largest healthcare sector. However, one of the challenges is the deal’s new supply chain stipulations, which mandate the exclusion of Chinese-made active pharmaceutical ingredients (APIs) destined for export to the US. China is the main producer of APIs, which means that UK pharmaceuticals may face increased costs, supply disruption and complex sourcing challenges.
Another point that the Agreement fails to address is the elimination of US tariffs on UK pharmaceutical exports. The government is confident that tariffs could be removed from pharmaceutical products, but there is no sign this will be applied in broader innovation in medical technologies, AI, etc. The Association of British Pharmaceutical Industry (ABPI) has voiced disappointment that while promising, the agreement lacks a relief of heavy tariffs and falls short of supporting the UK’s long-term life sciences ambitions.
Overall, the Economic Prosperity Agreement represents a cautious but meaningful step towards deeper UK-US trade integration, offering early benefits for sectors such as healthcare, agriculture, and manufacturing, while leaving the most substantial gains to be defined through future negotiations and sustained policy efforts.
A Landmark Trade Deal: Boosting UK-India Economic Ties
The UK-India Trade Agreement, signed in May 2025, is a breakthrough in post-Brexit Britain as it is promising to deepen the economic partnership between India and the UK. The deal includes sweeping tariff reductions including the automobile tariff which will reduce from 100% to only 10% and levies on British whisky and gin will be halved from 150% to 70%. Overall, 90% of UK exports to India will benefit from this deal, and 99% of India’s export to the UK will face no duties. Despite the immense opportunity for British producers in sectors such as alcohol, manufacturing, and services, for healthcare the deal falls short.
However, as the Association of the British Pharmaceutical Industry points out with this deal falls short on the life science ambitions as it fails to address long-standing concerns over intellectual property protections for UK life science firms operating in the Indian market. As Healthcare Today reported, the deal excludes clear provisions for regulatory data protection that pose a risk for UK pharmaceutical firms looking to safeguard innovations in the Indian market. Without enforceable IP standards, UK companies may hesitate to launch products or invest in R&D collaborations with Indian counterparts, undermining the UK’s broader ambition to position itself as a global life sciences superpower.
While the agreement undoubtedly strengthens bilateral trade and benefits multiple sectors, there is limited support for research-intensive sectors which highlights a missed opportunity to align economic growth with health innovation.
A Strategic Milestone: UK Joins CPTPP to Strengthen Trade Ties in Asia-Pacific
The UK’s accession to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) in December 2024 was a significant milestone for trade strategy. CPTPP was first signed by 11 countries in 2018-Australia, Brunei, Canada, Chile, Japan, Malaysia, Mexico, New Zealand, Peru, Singapore and Vietnam. The CPTPP obliges member countries to substantially lower or eliminate tariffs, commit to opening their services and investment sectors, and adhere to regulations concerning competition, intellectual property rights, and the treatment of foreign business. This membership grants UK businesses access to a combined market of £12 trillion and over 500 million people, with more than 99% of UK goods exports to CPTPP countries set to become tariff-free.
Moving from goods, the CPTPP offers substantial opportunities for the UK’s healthcare and life sciences sectors. The agreement includes provisions that facilitate the establishment of UK healthcare service providers in member countries, such as Vietnam. This enhances the potential for UK firms to expand their services in these markets, particularly diagnostics, remote monitoring, and private health consultancy, in rapidly growing markets. The deal also strengthens protection for foreign investors and enforces high-standard intellectual property rules, which are crucial for pharmaceutical and biotechnology companies developing novel therapies and vaccines.
As Reuters reports, while the immediate economic impact on the UK’s GDP is projected to be modest, the strategic value of CPTPP membership lies in its ability to diversify trade relationships and unlock long-term growth in high-value sectors like healthcare and digital services. As global demand for healthcare innovation continues to rise, the CPTPP provides a way for the UK to export its expertise and services to a broader international audience.
UK’s Trade Future Hinges on Next Steps
The UK secured three major trade deals that signal a new global strategy. While these agreements open markets for goods like whisky, cars and beef, their long-term impact depends on how they support strategic sectors like healthcare and life sciences. Key gaps remain, particularly in protecting pharmaceutical innovation and securing resilient supply chains. Though progress is evident, the UK’s global competitiveness will rely on closing these gaps in future negotiations, with the upcoming industrial strategy offering a key opportunity to align trade policy to align trade policy with the growth of the life science sector.
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At RPP, we specialize in navigating highly regulated sectors. We approach our role in the political and social landscape with a deep sense of responsibility, viewing public affairs as a critical tool for advancing societal progress, rather than a commercial pursuit. Our commitment is to leverage our sector-specific knowledge to drive meaningful change and contribute positively to the communities we serve.
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