Government sets out framework for future EU trade partnership

1 June 2018

A series of measures to promote mutually-beneficial trade are at the heart of a proposed framework set out by the UK Government for a “new, deep and special partnership” with the EU after Brexit.

The 21-page framework document, which covers the whole spectrum of measures, including an economic and security partnership, says that the depth of the existing UK and EU relationship creates a chance to break new ground once Brexit takes effect.

On trade, the framework document calls for:

* A system of mutual recognition for goods which would support €246bn of EU exports to the UK and €142bn of UK exports to the EU.

* A new customs arrangement in addition to maintaining zero tariffs between the EU and the UK.

* Minimising the barriers to trade for services and investment and mutually recognising professional qualifications, as the UK is the EU’s second-largest services trading partner.

* An agreement to support €37bn of EU exports to the UK and €15bn of UK exports to the EU for agrifood and fisheries products.

* For financial services, mutual market access based on equivalent outcomes and cooperation, to benefit businesses and consumers in the UK and the EU

The framework document adds: “Like any trading agreement, the economic partnership will need to include reciprocal, binding commitments to ensure fair and open competition. This is in our mutual interest.

“We have said we will consider keeping in step with the EU’s state aid rules and competition regime. Binding commitments that go further than those in a standard free trade agreement (FTA) should be in return for commensurate levels of market access.“

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