In: Economics
UK post BREXIT trade agreements For the past 40 years, the UK has been precluded from carrying out its own international trade policy. Under the Common Commercial Policy, the EU has the exclusive competence to conduct trade policy and relations on behalf of its Member States. This includes the right to regulate all aspects of external trade and to conclude trade agreements. Those powers will be repatriated once the UK formally leaves the EU, meaning that the UK will be solely responsible for its external trade relations. This will enable the UK to negotiate and conclude its own trade agreements and to regulate market access issues (eg tariffs, subsidies, trade remedies) in the future, and it will also require the establishment of new legislative and institutional frameworks under which the UK’s trade policy will operate. The ability to negotiate trade agreements has also been identified by the UK government as one of the key ‘red lines’ in the negotiating objectives for exiting the EU,1and the UK has already established a Department of International Trade whose remit includes the negotiation of future UK trade agreements. Much has already been discussed and written about the existing legal parameters (at both EU and international level) within which the UK trade policy will be conducted, as well as the shape that the UK’s future trade policy may take.2Far less attention, however, has been devoted to the decision-making processes which will underpin the UK’s trade policy and law and, in particular, the constituent actors that will be involved in shaping such policy and law. This question is particularly relevant with respect to the UK’s the devolved administrations, which will all have a significant stake in the UK’s future trade policy
. Q1. Discuss the challenges and potential that UK will face in the post BREXIT.
Q2. Discuss the future of trade agreements that UK may establish after the BREXIT.
Q3. Discuss who is the loser and the gain from BREXIT
1. Post BREXIT, UK will face the challenges of handling solely its external trade relations. The UK will have the potential of negotiating and concluding its own trade agreements and also regulate issues of market acess for example, tariffs, subsidies and trade remedies etc.) in the future.
2. The UK will be required to establish new legislative and institutional frameworks under which the its trade policy will operate. The UK government has identified the ability to negotiate trade agreements as one of the key ‘red lines’ in the negotiating objectives for exiting the EU. The UK has established a Department of International Trade whose remit includes the negotiation of future UK trade agreements.
3.The gain from BREXIT is clearly the UK . Because UK is now independent in carrying out its own international trade policy. The UK negotiates and concludes its own trade agreements and regulates market access issues. And the loser is the EU because the earnings which were received by the EU earlier would not be available anymore.