Q&As

What are the implications for trading in goods with the EU27 if the UK trades on World Trade Organization rules in the event of a ‘no deal’ outcome in March 2019?

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Published on LexisPSL on 04/02/2019

The following Commercial Q&A provides comprehensive and up to date legal information covering:

  • What are the implications for trading in goods with the EU27 if the UK trades on World Trade Organization rules in the event of a ‘no deal’ outcome in March 2019?
  • The WTO
  • WTO Rules
  • Schedules
  • Challenges for the UK in enforcing WTO rules
  • Impact of trading under WTO Rules
  • Customs and excise duties
  • Value added tax (VAT)
  • Guidance from the UK government and the EU Commission on tax in the event of a no deal Brexit
  • Customs checks and controls and the need to prove the origin of goods
  • More...

For the purposes of this Q&A we have focused on the matters directly relevant to World Trade Organization (WTO) rules as they relate to trade in goods between the remaining members of the EU (EU27) and the UK.

This Q&A does not focus on other legal, commercial and operational aspects which may be impacted by a ‘no deal’ Brexit in March 2019, such as the implications for haulage or transportation or product safety or labelling; or the impact on goods which are restricted, subject to export controls, require a licence for import or export, or are otherwise subject to specific rules.

Key guidance available focusing on the WTO rules in a ‘no deal’ Brexit scenario includes:

  1. Practice Note: International trade hub (in particular News Analyses: Brexit—customs implications for trade in goods and Brexit and the UK’s status in the WTO)

  2. Practice Note: Brexit—UK tax consequences

  3. Practice Note: Brexit—alternative UK trade models [Archived]

  4. Practice Note: Import and export of goods between the UK and EU post-Brexit [Archived]

The UK is due to exit the EU at 11:00pm UK time on 29 March 2019. Following that date the UK/EU27 legal and commercial relationship may be subject to a Withdrawal Agreement (the draft text of which includes a transitional period, during which the UK would generally remain subject to EU law (including the EU Customs Union and Single Market) for

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