SCENARIO: Assuming the UK does not join the EEA, it is expected it will no longer have access to the EU “single” or “internal” market.
EFFECT: In the absence of bi-lateral agreements, UK customs duty will apply to goods imported from the EU and EU customs duty will apply to goods imported from the UK. This means increased cost of goods imported into the UK and for UK goods sold to the EU. There will also be increased compliance costs and red-tape with potential delay of goods at borders. This will affect MNCs trading in goods from / into the UK and for UK companies selling or buying goods from EU member states.
It is hoped the UK will retain rights to access the single market either via membership of EEA/EFTA or concluding other bi-lateral trade agreements.