Reports Brexit: options for trade


Brexit: options for trade

The UK’s decision to leave the EU will fundamentally change its terms of
trade with the 27 other Member States, and with the rest of the world. The
Government has stated that it will trigger Article 50 by the end of March 2017.
The UK’s current trading arrangements with the EU will cease at the end of the
two-year period specified by Article 50, unless this period is extended by the
unanimous agreement of the EU-27. This report considers the principal possible
frameworks for trade after this time, namely joining the European Economic
Area (EEA), a customs union with the EU, a Free Trade Agreement (FTA) or
trade based on World Trade Organisation (WTO) rules. It asks whether they
might be modified—in line with the Government’s desire for a “bespoke UK
agreement” and explores the implications of the different options for the
sequencing and timeline of negotiations.