I wonder how many people realise that a tariff free trade deal doesn't mean tariffs are never paid on trade between the countries concerned
Remember those Rules of Origin we've been boring you with for years? Under an EU FTA the UK companies who source raw materials from all around the world for their products will not necessarily be eligible for zero tariffs
Sectors most likely to face tariffs in a future EU FTA because not enough of the product is locally sourced include car manufacturing and food and drink. Together they account for approx £55 billion of exports each year.
Getting the details of a trade deal wrong will mean business and economy losses. But you won't achieve everything you want and have to choose. Hence why business and government must take the time to understand those details, rather than setting arbitrary deadlines.
This by the way is also true. Even a zero tariff means paperwork to prove it.
Also worth mentioning another big issue - how do we choose between cheap imports for consumers and local production supporting exporters?
Also worth mentioning another big issue - how do we choose between cheap imports for consumers and local production supporting exporters?
In the event of the Conservatives winning the election 2020 will be another year in which business has to focus on Brexit - planning for no-deal again, but also identifying in detail what they'd need from UK trade deals, which could be offensive or defensive interests.
