Chapter 5: Trade
How will Brexit affect Britain's trade with Europe? Britain will have to reach a new trade agreement with the European Union. The task will be complex and will have to be carried out under the pressure of the two-year deadline. These discussions will need to consider the framework for exporting and importing goods (cars and food) and the basis for continued services trade (such as legal advice on big company takeovers) to and from the EU. One of the most prominent matters about a possible new deal would be tariffs imposed on UK goods and services. This is a very distinct possibility, as the no-fee policy under effect now, only exists between EU members. Brussels could easily impose a 5% tariff on all UK exports (more than eight of 10 UK-made cars are sold abroad), to which Britain could respond with tariffs on imported goods. In any case, it seems like EU has the upper hand since they are willing and able to apply more pressure than the British politicians. It is important t...