While overshadowed by the Senate hearing here in the United States, the United Kingdom formally left the European Union at 11:00PM GMT on January 31st. This formally begins an 11 month transition period during which the UK will continue to follow EU rules and remain within the customs union but will also be free to negotiate free trade agreements with the EU and other countries. This will be a tall order for the UK, considering FTA negotiations had been managed by the EU since the UK formally joined the bloc 47 years ago, however, the country has taken steps to prepare for this colossal task. For one, the British Government created the Department for International Trade in 2016 and hired hundreds of new members of staff to build skills within the department of trade negotiations. They have also pulled top talent from countries such as New Zealand, Australia, and Canada to further support this department.
Outside of an FTA with the EU, the second most significant FTA for the UK Government will be with the United States. Both countries constitute the largest origins of foreign direct investment and both countries constitute significant export markets for the other nation. For these reasons, it should be easy for both sides to see the significant benefits of a closer trading relationship between our countries. However, with just an 11 month transition period with which to negotiate this agreement before the UK is forced to trade on WTO terms and US elections set to take place in November both sides will face significant pressure to secure quick wins for their side. With all of this in mind, it will be incredibly interesting to see how these negotiations develop over the coming months.
To give a big of a broader background on Brexit please take a look at this article from the BBC.