Brexit: the UK government introduces the Trade Bill to the Parliament
On the 7th of November, the UK government introduced the Trade Bill to the Parliament. This bill will create a legal basis in UK law for the government to establish an independent trade policy, which is currently based on the EU treaties. It empowers the UK government to implement the existing EU FTAs, after the UK leaves the Union.
Moreover, it creates a new body – the Trade Remedies Authority -, which will be in charge of applying trade defence instruments: anti-dumping duties, countervailing duties and safeguards. The Customs Bill; which aims to creating a new customs system in the UK, will enter the Parliament soon.
For companies trading with the UK, the continuity of the existing EU FTAs would be beneficial since it would avoid the loss of the corresponding trade preferences. However, this cannot be taken for granted. The application of these FTAs to the UK after Brexit would depend on the consent of the trade partner to grant the UK the same conditions that were negotiated with the EU. Some trade partners might want to re-negotiate parts of the agreement, taking into account the specificities of the UK market. Furthermore, it’s very likely that trade partners would hesitate to close a deal with the UK without knowing the content of the future EU-UK relationship.
The Trade Remedies Authority will be an important pillar of the UK independent trade policy. Once the UK leaves the Union, the UK will no longer be bound by the anti-dumping duties imposed by the EU on products from third countries. UK businesses will no longer be protected by the existing anti-dumping duties and countervailing duties that were imposed by the EU. The UK will have to conduct its own investigation before imposing anti-dumping duties on imports to the UK.
How can my company prepare for Brexit?
Customs4trade experts can help you evaluate the impact of Brexit in your business. We can provide you with an impact assessment showing the potential impact in terms of finances, customs formalities and processes, supply chain risks and other regulatory measures. Once the risks and opportunities are clearly identified, Customs4trade can establish an action plan for your company to be ready for Brexit.
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