Brexit customs – access to EU FTAs

SCENARIO:  The UK  will no longer be able to access EU Free Trade Agreements (FTAs) with non-EU or “third countries” such as Chile, South Africa, Turkey, South Korea and Mexico as well those in the pipeline such as with USA, Canada or Japan.

EFFECT:  UK exports and imports may be subject to significant customs duty, tariffs, levies and increased compliance costs and act as a barrier to trade.  Although negotiating separate trade agreements is a long process, the UK will benefit from independence in the negotiating process and can structure the agreements to suit its own requirements.  UK MNCs relying on EU FTA’s as well as UK companies buying from or selling to non-EU countries with FTAs are expected to be impacted.

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