The Independent: No-deal Brexit would wipe out deals that deliver 12% of the UK’s total trade, government admits

12 October 2018

Trade agreements enjoyed with other countries, through EU membership, will “cease to apply” if the UK crashes out of the EU. The government said it would attempt to replicate the deals “as soon as possible thereafter” – but admitted those “third countries” would have leverage to demand better terms.

Until fresh agreements could be struck, exports and imports to these countries would fall under World Trade Organisation rules – and be subject to tariffs.

The admission came as the department for exiting the European Union (DExEU) released the final batch of technical papers, to prepare the public and businesses for a chaotic Brexit

The Food and Drink Federation immediately condemned the “shambolic” prospect of a no-deal exit – warning of higher shop prices and a huge loss of jobs, if tariffs were imposed.

And the British Chamber of Commerce said it underlined the need for the UK and EU to break the deadlock “as soon as possible, to avoid the confusion and significant disruption of a no deal scenario”.

The UK boasts around 40 free trade agreements, with more than 70 countries, because it is an EU member, including the United States, Canada, Switzerland, Turkey and Norway

They give businesses “a range of preferential market access opportunities”, including cheaper import tariffs and duties and more relaxed “rules of origin” requirements.

The deals also provide “enhanced market access” for services, “public procurement opportunities” and “improved protections for intellectual property”, DExEU said. [...]

Full article on The Independent

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