Brexit: trade in goods

Author (Corporate)
Series Title
Series Details (2016-17)HL129
Publication Date 14/03/2017
Content Type ,

The EU External Affairs Sub-Committee of the House of Lords EU Select Committee published a report Brexit: trade in goods on the 14 March 2017.

The report examined the implications of Brexit for the UK’s trade in goods with the EU. The report considered the potential impact of Brexit on trade in six goods sectors: chemicals and pharmaceuticals, capital goods and machinery, food and beverages, oil and petroleum, automotive and aerospace and defence.

Key findings

+ The manufacturing and primary commodities sectors are important employers, particularly outside the South East of England, and goods make up the bulk of the UK’s trade. Ensuring that these industries do not face additional barriers to trade will be essential to driving growth across the UK, as envisaged in the Government’s industrial strategy.
+ The manufacturing and primary commodities sectors are integrated into efficient EU-wide supply chains. Supplies and components may cross the Channel multiple times during production, and tariffs on UK-EU trade in goods could be imposed every time, increasing costs. Many UK businesses cannot easily substitute their imports from the EU, or find alternative export destinations.
+ Leaving the EU customs union would be likely to result in a significant additional administrative burden for companies and delays to consignments of goods, incurring additional costs. The customs agreement proposed by the Prime Minister would be unprecedented and it is unclear whether it will be possible outside a formal customs union.
+ There may be significant benefits in the UK continuing to participate, where possible, in EU agencies such as the European Medicines Agency and the European Aviation Safety Agency. The Government should clarify whether it would accept being subject to some form of oversight and dispute resolution to so do.
+ The Government should give serious consideration to a transitional agreement, as it begins its negotiations.

Source Link
Related Links
ESO: Background information: Brexit: the options for trade
ESO: In Focus: Brexit - The United Kingdom and the European Union
UK: Parliament: House of Lords: Committees: News, 14.03.17: Customs admin and delays a serious concern for firms after Brexit
UK: GOV.UK: Department for Exiting the European Union: Government response to the EU External Affairs Sub-Committee report on Brexit: trade in goods, 30.10.17

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