The UK has left the EU, but its trade relations remain unchanged until the end of the year. That`s because it`s in an 11-month transition – designed to give both sides some time to negotiate a new trade deal. The EU negotiates trade agreements on behalf of member states, including Ireland. These agreements deal with preferential tariffs on the transport of goods between the EU and countries around the world. Most (but not all) Swiss free trade agreements contain such a rule. This means that the determination of the country of origin of primary materials from a third country is not taken into account, provided that their value does not exceed 10% of the factory starting price. However, if a percentage rule is established in the list, it cannot be exceeded by the application of the general value tolerance. This is why this tolerance is particularly important for products for which the list provides for a jump in position. The general value tolerance cannot apply to products listed in Chapters 50 to 63 of the harmonized system, nor does it apply to products that have received only minimal processing in Switzerland. Update to show that the UK has in principle reached a trade agreement with the Customs Union for Southern Africa and the trade bloc of Mozambique. Free trade agreements have reduced the price of products for Swiss consumers and broadened the supply.
At the same time, Swiss producers benefit from lower prices for half-products and raw materials. Discussions are ongoing with Japan regarding a UK-Japan MRA. The United Kingdom and Japan have signed an exchange of letters to ensure the continuity of existing agreements as a temporary measure. The signatories to a free trade agreement form a free trade area (for example. B Switzerland-EU). It is not a customs union, that is, the signatories of the agreement retain their own external tariffs. On the other hand, in the case of a customs union, there are only common external customs duties. Once the goods have crossed this line and reached the market, they can move freely between the different countries without any other tariffs. Examples of customs union: European Union or Swiss-Liechtenstein. If the UK were to act in accordance with WTO rules, tariffs would apply to most of the products that British companies send to the EU. This would make British goods more expensive and more difficult to sell in Europe.
The UK could also do so for EU products if it so wishes. Brexit: British trade is “difficult when the Irish border is not resolved,” if the UK leaves the EU without these agreements taking place with those countries, trade with those countries will take place under WTO rules. To date, more than 20 of these existing agreements, covering 50 countries or territories, have been shaken up with the exception of the I.V. and will begin on 1 January 2021. Based on 2018 figures, this represents about 8% of total trade in the UK. But it is clear that new agreements with some countries will not be ready in time. On 23 October, the UK government signed a new trade agreement with Japan, which means that 99% of UK exports will be tariff-free. While a member of the EU, the UK was automatically part of some 40 trade agreements that the EU has concluded with more than 70 countries. In 2018, these activities accounted for about 11% of total trade in the UK. Trade agreements also aim to remove quotas – limiting the amount of goods that can be traded. They have also evolved to cover a wider range of areas to facilitate trade. These include public procurement opportunities, business visas, mutual recognition of professional qualifications, product certification, intellectual property rights and cross-border trade in services.