FW17 wrote: ↑
Tue Jan 22, 2019 2:49 am
Do you need a trade agreement to trade?
I thought an agreement was done so that trade between two countries may have reduced or no customs tariffs and reduced paper work
A trade agreement is that you agree how to do business and how large the tariffs would be and/or how you deal with movement of people. So after Brexit, the UK has to set rules how to deal with goods coming in from 100+ regions and visa versa. There will be no protection from deals put in place over the last few decades by the EU. So for instance, the EU has basic rules with China. As a EU citizen you can work there, get a visum without much hassle and we know what the tariffs are. Because the UK is totally unprepared and has no idea what to do, there is no idea what to do with goods coming in from china. And China can do whatever they want with goods, people and tariffs.
And that's just trade. Think about all the rules and regulations that come from the EU now. By what standards do good coming into the UK go by? Or protection, from April on, anyone can make Scottish Whiskey, etc etc.
One of the major benefits of Europe is that we bundled all of the bureaucracy for the 27 members into one. So if you want to sell baby clothing, you have, for Europe, one set of rules (how long it may burn for instance) and have to test it once instead of 27 times. The UK has to re-do this for themselves again and largely expand their trade offices. They will need truckloads of new rules and regulations and companies who want to do business with the UK have to go trough that process if they want to do business in the UK. Or will the UK just except all goods with an ECE approval? For British companies, they can't have their goods approved inside the UK anymore because as a non EU member you can't give anything a ECE badge.
Best case scenario is that counties will handle the UK with their default customs and tariffs rules (for when they deal with a country with no agreement in place) but they are high and steep plus a very complicated process. Going in to the UK is a bit more of a problem because the UK has noting in place. It hasn't traded with anyone in decades (it was all under the umbrella from the EU).
Either way, the UK is and will be in lots of trouble if no deal goes on.