Question

The UK’s relationship with EU after the winning of the Brexitters is uncertain. UK will have to negotiate with EU member nations on almost everything, ranging from tariff to maintaining the most favored nation’s status. Determine whether UK will be able to keep its relationship with EU through an FTA scenario.

Answer 1

The British Government recognizes that the EU would consider the UK "a third country for all reasons" without an exit contract in place. It released information of its own preparations for no-deal.

Based on its Single Market and Customs Union, trade laws would alter from those of the European Union to those of the World Trade Organization (WTO).

WTO regulations imply that all other members–except developing nations and those with free trade contracts–must have the same market access. Trade experts agree that the EU can not treat the United Kingdom differently from other nations: it would apply laws presently enforced on third nations.

The UK would no longer be part of the mutual recognition scheme of the EU. In many fields, UK would continue to obey EU regulations–but companies would have to cope with fresh regulatory regimes, such as drugs. Pharmaceutical companies are recommended to store supplies for six weeks. In agriculture, new certification is required, resulting in warnings that trade in organic food can be efficiently suspended.

The amount of customs declarations to be processed by the UK police could increase to 260 million from 55 million per year. New boundary systems would be required, but the accountable body reported 11 out of 12 projects may not be prepared in time in September. Non-tariff barriers are likely to strike more than tariffs on competitiveness, particularly for smaller firms. Highly controlled sectors like food, chemicals, aviation and automobiles would suffer most–subject to fresh security and quality standards controls.

Long delays and jams on the highways, huge disruption. In a worst-case scenario, the UK government estimated that Channel ports could be hit for up to six months. Northern France's head of the Calais area has insisted that French ports will be ready for a no-deal exit–as soon as British officials are prepared. The UK services sector accounts for an approximately 80% of the gdp of the country. While the EU is selling more products to the UK than it is buying from the UK, the UK has a "trade surplus" in services, exporting more to the EU than it imports. Under WTO rules, a' tough Brexit ' alternative provides restricted integration of services