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The Brexit transition period ended last January 1. This means that from that date, the UK controls its external border itself, as well as the movement of goods between the UK and the EU. It can also independently conclude trade agreements with other countries around the world.
However, last week, Foreign Secretary Dominic Raab said the UK should introduce new rules for its companies, in order to keep goods linked to China's Xinjiang region out of their supply chains.
To add to that, UK lawmakers are considering proposals that would give courts the power to overturn free trade agreements with other countries, especially if they consider them to be genocidal.
Raab told BBC on Sunday: "Britain must not participate in free trade negotiations with countries that violate human rights."
"I think there is a second problem, which is actually related to what we now know about what is happening in Xinjiang. The question is whether you are participating in free trade negotiations with any country involved in these human rights violations, "added Raab.
As a result, GBP / USD continues to actively decline from 1.37.
"We really shouldn't delegate the political issue of who you're negotiating free trade with," Raab said. "This is what MPs should demand from the government, and we absolutely agree with that."
Speaking to parliament last week, Raab said there is evidence of forced labor among Muslim Uighurs in Xinjiang.
However, China denies the charges, and a Foreign Ministry spokesman called the allegations "a lie".
Nonetheless, the UK hopes to forge its own trade agreements with other countries around the world.
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