14 July 2020
Alasdair Smith is an Emeritus Professor of Economics at the University of Sussex and is a member of the UK Trade Policy Observatory.
There were no surprises in yesterday’s government announcement of the post-Brexit ‘points-based’ immigration rules (except for those who thought that a provision for health and care might actually cover social care workers).
The government’s stated objectives are “flexibility and control over our borders”. However, an essential feature of the points-based scheme is that it is not actually operated at the border, but in the jobs market through the rules that non-UK employees must satisfy in order to take up a job offer in the UK. EU citizens will continue to have visa-free entry to the UK: the change for them is in their right to take up employment in the UK. (In all of this, Irish citizens are treated the same as UK citizens, and indeed EU citizens in Ireland can enter the UK without passport checks.) (more…)
Charlotte Humma July 14th, 2020
Posted In: UK- EU
Tags: border control, Immigration, points-based, Regions
8 July 2020
Dr Minako Morita-Jaeger, International Trade Policy Consultant and Fellow, UK Trade Policy Observatory at the University of Sussex.
Japan and the UK launched the Japan-UK Free Trade Agreement (FTA) negotiation on 9th June. The two governments agreed to “work quickly to make the new partnership as ambitious, high standard, and mutually beneficial as the EU-Japan Economic Partnership Agreement”.[1] As negotiations accelerate, there are three fundamental issues to consider when assessing the deal. (more…)
Charlotte Humma July 8th, 2020
Posted In: UK - Non EU, UK- EU
Tags: Free Trade Agreement, FTA, Japan, Post-Transition, UK-Japan
20 May 2020
L. Alan Winters CB is Professor of Economics and Director of the Observatory, Michael Gasiorek is Professor of Economics at the University of Sussex and Julia Magntorn Garrett is a Research Officer in Economics at the University of Sussex. Both are Fellows of the UK Trade Policy Observatory.
On Tuesday 19th May the UK’s ‘Global Tariff’ was published. These are the tariffs that will apply on any products that the UK imports on a Most Favoured Nation (MFN) basis from the end of the transition period when the UK is no longer bound by the EU’s Common External Tariff. The published tariffs come after a public consultation on the subject was held in February this year.
This note summarises how the new tariff compares to the UK’s current MFN tariffs (which are also the rates that the UK has bound in the WTO for after the transition period) and outlines what has changed since the tariff consultation. (more…)
Charlotte Humma May 20th, 2020
Posted In: UK- EU
Tags: Common external tariff, Global Tariff, MFN, tariffs
14 January 2020
Dr Anna Jerzewska is a independent customs and trade consultant, an independent advisor with the UN International Trade Centre and also a trade policy and customs consultant for the British Chambers of Commerce.
The UK is due to leave the EU on the 31st January 2020. A new stage of the Brexit process is set to begin – the transition period and negotiations of the future relationship with the EU. At the same time, work on the Northern Irish border arrangements is far from over. A newly established Joint Committee will negotiate the practicalities of implementing the Withdrawal Agreement.
Under the Withdrawal Agreement (“WA”), Northern Ireland would stay in the UK’s customs territory but would at the same time continue applying EU’s customs legislation, tariffs, quotas and, partially, EU Single Market rules. This will avoid a border on the island of Ireland but will mean a de facto customs and regulatory border in the Irish Sea. As a result of this dual status, goods shipped from Great Britain (“GB”) to Northern Ireland (“NI”) will be subject to EU tariffs if they are “at risk of subsequently being moved into the Union, whether by itself or forming part of another good following processing”[1]. What that means has not been fully defined within the text of the Agreement. Article 5(2) clarifies that all goods will be considered to be “at risk”, and thus subject to EU tariffs unless it is established that they will not be subject to commercial processing in Northern Ireland or they are otherwise exempt. This is one of the areas where the Joint Committee will need to introduce practical ways of implementing the agreement. (more…)
Charlotte Humma January 14th, 2020
Posted In: UK - Non EU, UK- EU
Tags: Customs, Irish border, tariffs
12 December 2019
Michael Gasiorek is Professor of Economics at the University of Sussex and a Fellow of the UK Trade Policy Observatory. Nicolo Tamberi is a Research Assistant in Economics for the UK Trade Policy Observatory.
Following Brexit, and assuming the UK is no longer part of a customs union with the EU, the UK will be able to sign free trade agreements (FTAs) with third countries. Indeed, the Conservative manifesto aims to have 80% of UK trade covered by FTAs within three years. This is clearly unrealistic, because it would require signing agreements with more than 12 countries within a time-scale which has rarely been achieved for a single agreement. The objective, however, highlights that, post-Brexit, there will be a lot of focus on trying to sign FTAs. Other than the somewhat significant matter of signing an agreement with the EU, top of the UK’s FTA wish list is an agreement with the US. (more…)
Charlotte Humma December 12th, 2019
Posted In: Uncategorised
9 December 2019
L. Alan Winters CB is Professor of Economics and Director of the Observatory.
Our analysis finds that under the UK-EU Protocol on Northern Ireland, about 75% of Northern Ireland’s imports of goods from other locations, including Great Britain, would be subject to EU tariffs on their arrival in Northern Ireland. This is not easily reconciled with the government’s assertion that Northern Ireland remains within the UK customs territory. (more…)
Charlotte Humma December 9th, 2019
Posted In: UK - Non EU, UK- EU
Tags: Ireland, Northern Ireland, Supreme Court Ruling, tariffs, withdrawal agreement
4 December 2019
L. Alan Winters CB is Professor of Economics and Director of the Observatory.
The Prime Minister seems to think that an ‘oven-ready’ Brexit deal is the best that we can choose from the menu of policy alternatives. It sounds neither appetising nor nourishing, but if it really were quick and easy, maybe it would be worth it.
But it’s not quick or easy: ‘oven-ready’ is just not true. (more…)
Charlotte Humma December 4th, 2019
Posted In: UK- EU
Tags: Brexit, oven-ready, Regulations, tariffs, withdrawal agreement
16 October 2019
Julia Magntorn Garrett is a Research Officer in Economics at the University of Sussex and Fellow of the UK Trade Policy Observatory.
In March 2019, Theresa May’s Government published a set of ‘No deal’ tariffs, designed to apply for up to 12 months in the event that the UK left the EU without a deal. The UKTPO described them in a blog and a Briefing Paper. On October 8, the new Government published an updated ‘No deal’ tariff schedule. This blog outlines the main changes, and recalculates various statistics, on the basis of the new tariff proposal. (more…)
Charlotte Humma October 16th, 2019
Posted In: UK - Non EU, UK- EU
14 October 2019
Michael Gasiorek is Professor of Economics at the University of Sussex and a Fellow of the UK Trade Policy Observatory.
With the current state of negotiations between the UK and the EU it is easy to see why attention is focussed on the politics of a possible agreement. The contentious issue is, of course, that of the Irish border. However, the focus on the politics means that there has been little discussion of the economic impacts and specifically of the vulnerability of the Northern Irish economy to the decisions being made. (more…)
Charlotte Humma October 14th, 2019
Posted In: UK- EU
Tags: Economics, Exports, Imports, Irish border, No deal, Northern Ireland
03 October 2019
L. Alan Winters CB is Professor of Economics and Director of the Observatory.
At last, a chink of clarity. Yesterday’s proposal for the treatment of the Irish economy admits, more or less for the first time officially, that there are trade-offs to Brexit. Suddenly the laws of political physics are restored. You cannot both have your cake and eat it.
The trade-off that has at last dawned on Boris Johnson is that if you want the whole of the UK to choose its own tariffs on goods, a customs border in Ireland is inevitable. And if you want Britain to be able to set its own regulations, then you need a border in the Irish Sea. (more…)
Charlotte Humma October 3rd, 2019
Posted In: UK- EU
Tags: border checks, Boris, Irish border