მაგისტრანტი, ბიზნესის ადმინისტრირების დეპარტამენტი, აკაკი წერეთლის სახელმწიფო უნივერსიტეტი, ქუთაისი, საქართველო
მაგისტრანტი, სოციალურ მეცნიერებათა დეპარტამენტი, აკაკი წერეთლის სახელმწიფო უნივერსიტეტი, ქუთაისი, საქართველო
The challenges for the UK in post-Brexit foreign trading relationships
(თანამედროვე ეკონომიკა, ეკონომიკური პოლიტიკა და სოციალურ-დემოგრაფიული პროცესები)
Introduction and aim: This paper discusses the challenges for the UK as it attempts to redefine and renegotiate its post-Brexit foreign trading relationships. It starts from the position that the UK faces an immediate strategic choice in its approach to trade policy: whether to remain in the EU customs union. A decision to remain part of the customs union would mean a minimum of change in the UK’s relationship with the EU 27 as far as goods trade is concerned. Under this arrangement, the UK would continue to apply the existing EU common external tariff, as well as any preferences negotiated with third countries.
Research methodology: The analysis of qualitative and quantitative data is based on official reports of the UK Trade Policy Observatory (2016), ‘The World Trade Organization: A Safety Net For A Post-Brexit UK Trade Policy?” ; – Eurostat's updated report on post-Brexit foreign trading;
Results and implications: The key advantage of remaining in the customs union is that there would be no need to introduce rules of origin, which would require potentially expensive customs procedures. These could delay transit and reduce trade volumes. The main disadvantage of remaining in the customs union is that the UK could not directly negotiate trade agreements with third countries, either in the WTO or bilaterally. That would remain in the hands of the European Commission. Another challenging aspect of negotiating a new set of external trade relations is the extent to which UK diplomacy will have to be engaged simultaneously on multiple levels. That said, the success of this venture will inevitably depend on the sequencing of diplomatic endeavours, with negotiations with the remaining EU members being the foundation.
Conclusion: In developing a trade strategy, the UK must immediately navigate the detail of specific agreements while striving to manage its strategic objectives. Ideally, it would use its withdrawal from the EU as an opportunity to rethink the basis of UK trade policy and pursue a UK-specific vision.
The new document of the country's government notes that since March 2019, when negotiations on the Brexit are completed, a temporary customs union will be created. Within the framework of the Union, the trade of Britain and EU countries will continue under the existing conditions, but London will also be able to negotiate trade negotiations with countries that are not member states. As long as Britain is a member of the EU, it has no right to negotiate trade negotiations with non-member states.
Keywords: Brexit, trade negotiation, EU members, EU common external tarrif