The NFU have summarised the three international trade scenario’s available for the UK to adopt in an article called: ‘British Agriculture: The implications of a UK exit from the EU’.
- Free Trade Agreement between the Eu and the Uk – this scenario is most commonly proposed by those who advocate Brexit. Under this scenario agricultural trade between the EU and the Uk is fully liberalised apart from the Uk Lamb exports to the EU, which the EU would deem as a sensitive product and therefore seek to limit.
- World Trade Organisation default position – under this scenario the EU applies its external Common Customs Tariff to UK exports and the UK applies the same rates set by the Eu’s Common Customs tariff to EU and non-EU country imports.
- UK trade liberalisation- under this scenario the EU applies its external Common Customs to the UK exports and the Uk applies a 50% reduction in those same rates to EU and non-Eu country imports.