UK Trade with EU

(asked on 2nd February 2021) - View Source

Question to the HM Treasury:

To ask the Chancellor of the Exchequer, what assessment the Government has made of the effect of the UK's withdrawal from the European Customs Union on businesses in the UK that import goods from third countries via the EU.


Answered by
Jesse Norman Portrait
Jesse Norman
This question was answered on 9th February 2021

The UK-EU Trade and Cooperation Agreement (TCA) ensures there will be zero tariffs or quotas on trade between the UK and the EU, where goods meet the relevant rules of origin, and also includes provisions to facilitate trade and address non-tariff barriers. At the same time, it takes the UK out of the EU’s Customs Union and Single Market and enables the UK to develop an independent trade policy and take full advantage of the new international trading opportunities available.

Rules of origin are a standard feature of trade agreements and serve to protect UK industry from unfair competition by ensuring that products from third countries cannot unduly benefit from the TCA. The rules of origin in the TCA were developed in close consultation with stakeholders to reflect the needs of UK-EU supply chains.

The Government has always been clear that leaving the Single Market and Customs Union will result in new customs processes for businesses trading with the EU. There will also necessarily be some circumstances where goods do not satisfy rules of origin requirements, including where products contain significant inputs from countries outside the UK or EU. The Government has published detailed guidance on rules of origin in the TCA and is working with businesses and trade associations to ensure that businesses understand any new requirements.

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