Briefing Paper 15 – CERTIFICATES AND RULES OF ORIGIN: THE EXPERIENCE OF UK FIRMS
Rules of Origin (RoOs) are used by importing Customs authorities in the international trading system to determine if a product is considered as sufficiently linked to the exporting country to count as originating there, in order apply preferential or MFN (Most Favoured Nation) rates of tariff to the goods, and to check for quota, anti-dumping and related compliance. The importance of RoOs is due to the fact that duties and restrictions in many cases depend upon the source of imports. Proving origin will be a far bigger issue than it is now for UK business exporting to the EU after Brexit. With all businesses likely to have to rethink their compliance with Rules of Origin post-Brexit, this paper, based on a study carried out with the support of the British Chambers of Commerce, outlines the current Certificates of Origin regime and the options for change after Brexit.
Read Briefing Paper 15- CERTIFICATES AND RULES OF ORIGIN: THE EXPERIENCE OF UK FIRMS and the Online Appendix
Briefing Paper 14 – BREXIT AND REGIONAL SERVICES EXPORTS: A HEATMAP APPROACH
The UK’s exit from the European Union (EU) is likely to have significant ramifications for services trade because the Single Market has been particularly salient for facilitating the international exchange of services. Yet the discussion of potential effects on the British economy of Brexit has largely been confined to manufacturing sectors at the national level. Less attention has been paid to services sectors, even though the UK economy is particularly strong in exporting services. To address this void, this Briefing Paper describes the rich pattern by which UK regions are exporting different kinds of services. In particular, it traces the extent to which UK regions export services relatively intensively to EU countries relative to other destinations outside the EU.
Read Briefing Paper 14 – BREXIT AND REGIONAL SERVICES EXPORTS: A HEATMAP APPROACH and the Online Appendix.
Magic realists and economic realists
15 December 2017
Alasdair Smith is an Emeritus Professor of Economics at the University of Sussex, and is a member of the UK Trade Policy Observatory.
The deal done on Friday December 8 in the Brexit negotiations has already been subject to conflicting interpretations. The UK has committed to having no hard border in Ireland, and committed in terms which seem to admit no rowing back. […]
Softer Brexit, Softer Irish border?
8 December 2017
Jim Rollo is Deputy Director of UKTPO, Emeritus Professor of European Economics at the University of Sussex and Associate Fellow, Chatham House. Dr Peter Holmes Reader in Economics at the University of Sussex and Fellow of the UKTPO.
The agreement to proceed to the next phase of Brexit talks is a step forward on the road to a softer Brexit. But it does not offer a definitive solution to the status of the Irish border, which will depend on the nature of the final agreement on the UK-EU trade relationship. At best, it represents an exercise in constructive ambiguity designed to allow the shape and length of any interim agreement, which will help determine the shape of the long-term agreement and, in turn, will be the basis of any permanent solution to the status of the Irish land border with Northern Ireland. […]
Hard Brexit, soft Border. Some trade implications of the intra-Irish border options.
7 December 2017
Dr Emily Lydgate is a lecturer in Law at the University of Sussex and a fellow of the UK Trade Policy Observatory.
How can the UK uphold its commitment to leaving the EU Single Market and Customs Union while also preserving the invisible intra-Irish border? Leaving aside crucial questions of political feasibility, this post looks at some of the options and their trade and border implications. Notably, there are limits to ‘flexible and creative’ solutions that involve turning a blind eye to customs and regulatory checks solely on the intra-Irish border: trade rules leave little room for such ad hoc approaches. […]
Briefing Paper 13 – GRANDFATHERING: WHAT APPEARS BILATERAL IS TRILATERAL
Rolling over the 37 Free Trade Agreements (FTAs) with more than 60 countries that the UK currently has through the EU will be a monumentally complicated task and one that needs to be completed by March 2019. This Briefing Paper outlines why it may not be easy to get agreement on grandfathering with the FTA partner countries, and why even if agreement could be reached it is unlikely that trade will continue on the same basis as previously. A key point which emerges is that with regard to several key issues – Rules of Origin (RoOs), Most Favoured Nation (MFN) clauses, mutual recognition, and tariff-rate quotas – grandfathering the agreements is unlikely to happen without some engagement or negotiation with the EU. Hence what you might think is a bilateral issue between the UK and a given FTA partner, becomes a trilateral issue which also involves the EU.
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With Brexit less than 500 days away, enshrining the Brexit date into law will not provide certainty that consumers and businesses really need.
16 November 207
Ilona Serwicka is Research Fellow in the Economics of Brexit at the UKTPO.
The European Chief Negotiator for Brexit, Michel Barnier, has recently confirmed that the UK will cease to be a member of the EU at midnight (Brussels time) on 29 March 2019. This means that we are now less than 500 days and under 350 working days away from the Brexit date. More time has already passed since the United Kingdom voted to leave the European Union on 23 June 2016. […]
Briefing Paper 12 – TRADE AND CONSUMERS AFTER BREXIT
Consumers face many challenges post-Brexit. The new UK Trade White Paper published by the Department for International Trade in October 2017 has stated that it will give a major priority to consumers, but details remain to be spelled out. Increasing scepticism about free trade puts at risk the classic gains from trade – lower prices and better choice – and gives rise to fears of job losses from increased imports. On the other hand, some fear that Brexit – and potential trade agreements with third countries – will weaken or undermine consumer protection. In the addition to these substantive issues there are procedural questions too – how is consumer interest represented? This briefing paper addresses these issues of trade policy and consumer interests.
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Will Brexit Raise the Cost of Living?
2 November 2017
Ilona Serwicka is Research Fellow in the Economics of Brexit at the UKTPO.
As the United Kingdom is preparing to leave the European Union, Government policy is to seek a deep and comprehensive free trade agreement with the EU. But Brexit talks have not moved onto the trade issues yet and even if the future trade relationship is taken up in December, this gives little time and offers no guarantee that an agreement will be reached and ratified before 29 March 2019, the Brexit date. The Government has recently recognised the possibility that talks might break down and started to outline a ‘no deal’ vision of the UK-EU trade.
Our analysis reveals that unemployed households, those with children, and pensioners will all fare off worse than average in the case of a ‘no deal’. A new paper, Will Brexit Raise the Cost of Living? by Stephen Clarke, Ilona Serwicka and L. Alan Winters, and published by the National Institute Economic Review, looks at the impact that imposing Most Favoured Nation (MFN) tariffs on UK imports from the EU would have on the price of goods sold in the UK […]
Briefing Paper 11 – A UK BREXIT TRANSITION: TO THE UKRAINE MODEL?
The UK is searching for a framework for its post-Brexit trade arrangements with the EU. A clean Brexit from the EU has always been unrealistic and the EU is limited in the kind of trade arrangements it offers to third countries. This briefing paper examines the EU-Ukraine Association Agreement (AA) suggesting how a similar agreement may offer a way forward for the UK-EU negotiations. The EU-Ukraine AA reveals that the EU is willing to adapt previous Agreements to new circumstances. A similar UK-EU Agreement could provide access to the Single Market, maintain inward investment incentives and provide an attractive location for establishment of firms and enterprises, especially in the services sector – an area the UK is keen to protect. For the UK, the adoption of this approach would require less unravelling of existing UK laws, but offer some room for independence in negotiating future issues.
Read Briefing Paper 11 – A UK BREXIT TRANSITION: TO THE UKRAINE MODEL?