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The ignorance of the British about the economic structure of their own country and the dramatic changes that have occurred to it over the past fifty years has.
Table of contents



Although fewer of our exports are now going to other EU countries, these exports are still just as important to our economy.

The Economic Impact of Brexit on UK and EU Trade – Richard Chen – Medium

The Commission told us that this should have read: We are currently at - please help Full Fact grow. Trade after we leave After the UK leaves the EU, the future rules on trade will depend on what kind of agreement, if any, the UK reaches with the EU after its departure.

The status quo

How much is UK-EU trade worth to each party? There are lots of ways to look at how much trade between the UK and EU is worth to each party.


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Correction 23 March We originally said in the first section of this article that: Isn't it nice to have the whole picture? Could leaving the European nuclear club put cancer patients at risk? The EU's other trade agreements Tariffs and barriers: Prime Minister's Questions, factchecked Tax gap, migration and trade deficit: The EU has said it would be open to a free trade deal to ensure tariff-free trade for most goods.


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It would be a stretch to persuade the EU to accept this, but it would solve some problems. It would eliminate the need for companies to make customs declarations and comply with rules of origin checks to make sure goods originating outside the free trade area do not enter without paying duty, which can be extremely complex. This would lessen the disruption to supply chains that rely on frictionless, just-in time delivery. It would also go some way to avoiding the creation of a hard Irish border.

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But regulatory barriers are often more important than tariffs. At present, the UK implements EU rules. If it has own regulatory system after Brexit, the EU will still insist on border checks to make sure that goods entering the single market meet its standards — even if Britain is part of a customs union.

How will British businesses trade after Brexit?

A deal along these lines would meet the pledges both sides have made to prevent a hard border in the island of Ireland. It would also avoid disruption at borders more generally and could dissuade big manufacturers from moving elsewhere in the EU. But the EU denounces any such arrangement as cherry-picking — attempting to retain the advantages of single market membership without accepting the corresponding obligations on free movement.

Brussels also argues that trade in goods cannot practically be separated from services: For the proposal to be taken seriously, though, Mrs May would have to make substantial concessions on money and sovereignty.

UK and the EU: Trade and economy

The UK would have to abide by EU product regulation, and guarantee not to undercut EU rules on competition, social policy and the environment. It would probably also need to make a budget contribution and either accept ECJ oversight, or agree on a new extraterritorial mechanism to resolve legal disputes. Subscribe to the FT. Brexit Add to myFT. Delphine Strauss July 5, Listen to this article Play audio for this article Pause The status quo Participation in the single market requires acceptance of all four EU freedoms: Cookies on FT Sites We use cookies for a number of reasons, such as keeping FT Sites reliable and secure, personalising content and ads, providing social media features and to analyse how our Sites are used.

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