Brexit deal has created ‘bumpy’ trade relations

The trade deal provides for tariff and quota-free trade in goods between the EU and UK but scarcely covers trade in services. Meanwhile, the imposition on non– tariff barriers have hit UK small businesses disproportionately hard. [Shutterstock / pitchr]

The post– Brexit Trade and Cooperation Agreement between the EU and UK has not made a level playing field for trade between equals but an imbalanced and only narrowly “free” trading relationship, according to a report published on Thursday 21 October by the London School of Economics.

The report also argues that the TCA, which came into force on 1 January, just days after officials completed negotiations, has left the UK in a trading limbo.

The TCA “produces a dilemma for the UK: either stick to EU standards to preserve trade with European counterparts, or modify its standards to facilitate new free trade agreements, but with the substantial risk of cutting off its companies from the single European Market,” the report says.

The trade deal provides for tariff and quota-free trade in goods between the EU and UK but scarcely covers trade in services. Meanwhile, the imposition on non– tariff barriers have hit UK small businesses disproportionately hard.

(Benjamin Fox | EURACTIV.com)

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