Taller Bretix

BREXIT

Jorge Del Rio Ortega

Leonardo Domínguez Ruiz

Maria José Puerta Nieto

Is Brexit a non- tariff or tariff barrier? Why?

In my opion Brexit is a non-tariff barrier for the strong government intervention in trade measures. In case they do not reach an agreement, the government has established its protection plans, which go beyond a fee. For example: there will be some protection for companies that produce cars in the United Kingdom. On the other hand, the government has tried to balance the benefits of free trade to obtain cheaper products for consumers, with the protection of the livelihoods of some UK producers

These are what are known as "non-tariff barriers" and include things like product standards, safety standards and sanitary controls on food and animals. Once the United Kingdom is no longer part of the EU, both parties must find a way to work with the regulations of the other. Under a Brexit without agreement, it is unlikely to happen immediately, because the standards are different.

1. How can both the UK and EU markets get affected by Brexit?

The EU is the UK’s largest trading partner, although its importance has been slightly declining. Official UK figures show that 44% of all UK exports went to the EU in 2017, while 53% of all UK imports came from the EU. As a bloc, EU countries sell more to the UK than vice-versa.

The consequences of a "non-deal Brexit" particularly in trade predict cross border disruptions, higher prices and shortages of essential goods. Tariffs would raise the cost of exports. That would hurt exporters as their goods became higher-priced in Europe. Some of that pain would be offset by a weaker pound. Higher import prices would create inflation and lower the standard of living for U.K. residents.

In addition, Britain trades with the rest of the world as a member of the EU. Under the no deal, some 40 existing trade agreements, in whole or in part, between the EU and dozens of countries would no longer apply to the UK.

1. What a type of products may be affected with Brexit?

There are a lot of products that could be affected with brexit and this is one of the biggest causes for concern about brexit. Supermarket shelves, fridges and stomachs couuld be altered.

Some examples of the main food and drink ítems which may be at risk due to Brexit are:

1. Cheese: A report from the British Retail Consortium released last year warned that could lead to a cheese crisis due to rising import costs.
2. Wine: UK Trade Policy Observation found that by 2025 the Price of wine for Brits might be 22 percent higher than it would be without Brexit.
3. Olive oil: In 2018 the Price of olive oil hit a seven year high due to the brexit-induced collapse of the pound and erratic weather in Spain and Italy.
4. Pork: Tariffs of between 45p/kg and 150p/kg on exports into Europe would be likely to render trade unviable and create a significant challenge for UK pig producers – particularly because they lay open the potential for cheaper meat from outside the UK to be imported without such sanctions.
5. Gin: because British distillers rely on Eu shipments for a whole host of botanicals including juniper most of wich come from the mediterranean.

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