World - - Mar 08,2017
Prime Minister Theresa May has planned to initiate the UK’s exit from the European Union with a deadline set for March end, but any fixed decision of British trade still remains unanswered.
UK Prime Minister, Theresa May, has ruled out sustained membership of the EU's single market once the final terms of the Brexit deal are concluded. This has left many assuming that the UK will further quit the customs union as well.
Moreover, the UK could be forced into World Trade Organization tariffs if the decision to quit the European Union proceeds without a proper Brexit trade deal. At present, this option is seriously thought by the UK government.
According to Paul Drechsler, president of the UK Confederation of British Industry (CBI), leaving the EU without a well-organized deal would create regulatory barriers as well as substantial tariff leading to economic consequences.
Mr. Drechsler added, wherever he has traveled across Europe, concerns about the UK quitting the EU without a deal and dropping into the “World Trade Organization rules” are clearly heard.
He was quite specific in pointing out that, barriers on trade would hamper firms both in the UK as well as the EU. “The UK would face tariffs on 90 percent of its EU exports by value”, said Mr. Drechsler.
Presently, a trade dispute would be an issue for the European Court of Justice. Theresa May has already stated that its influence in the UK will end.
If any sort of agreement with the EU is formulated, there are high chances that it would contain some arrangement for a committee to make rulings.
On the other hand, if no agreement is finalized over UK trade then any argument would be transferred to the WTO's dispute settlement system; it would work to establish panels to prepare the rulings.