By the end of 2020, the UK will move to WTO terms with all countries with which it does not have a preferential trade agreement. Can the UK continue to benefit from EU-negotiated trade agreements? The UK is currently in a transition phase with the EU until the end of the year, which means that it still complies with EU rules and that trade remains the same. The transition should give both sides some time to negotiate a future trade agreement. If, before Brexit, the car or aircraft in question was mainly built within the EU, with a largely European supply chain, certification of European citizenship was relatively simple. After Brexit, without a deal with the EU, things will get complicated for both the EU and the UK. Consider a car where 55% of its value comes from production throughout the EU (excluding the UK) and 30% of its value comes from the UK. If the EU has a free trade agreement that favours cars at 65% of the EU before Brexit, that would not be a problem, but after Brexit it would be as good for the UK as it is for the Relevant European institutions. Both sides have tried to reach a new free trade agreement that would get rid of tariffs and quotas, but not a new border bureaucracy. The UK and the EU are entering a key phase of negotiations on their future trade relations and, as things stand, it is quite possible that a free trade agreement (FTA) will not be concluded, which would mean a hard Brexit with a hard Brexit between the UK and the EU under WTO terms. If there is no trade agreement between the UK and the host country, act under the conditions set out in the host country`s General Agreement on Trade in Services (GATS). Conditions are defined in the list of specific commitments and in the list of exceptions covered by Article II (MFN). This page contains instructions for interpreting service schedules.
After the end of the transition period, the UK will not lose the benefit of the agreements negotiated by the EU unless it has managed to negotiate a separate bilateral rollover agreement with the country concerned. For more details, please see question 8 of this series of questions. Once the UK formally leaves the EU at the end of the Article 50 procedure, there are a number of framework opportunities for trade in goods and services between the UK and the EU. One possibility is that trade between the UK and the EU will comply with WTO rules, at least until a comprehensive free trade agreement is in place. In practice, the effects of trade facilitation agreements can often be quite significant, both in terms of cost reduction and guaranteeing the rapid movement of goods, particularly given the extent to which modern supply chains depend on „just-in-time“ delivery. For example, it is estimated that the cost of complying with customs bureaucracy may be an additional fee of 2 to 15%, depending on the goods involved and the resulting bureaucratic burden. Check out the UK`s trade deals.