What if an agreement is not reached?

What if the deadline set by British Prime Minister Boris Johnson passed without reaching a trade agreement with the European Union? And what does the UK bloc want? In short, Europeans want Britain to agree to follow its own rules related to fair and open competition, so that British companies that are given duty-free access to the EU market cannot undermine their European competitors. . The union is warning the UK that it will not be allowed a “high quality” market unless it adheres to the agglomeration’s social and environmental standards. He also wants the European Court of Justice to have legal powers to monitor any free trade agreements reached between him and Great Britain, which rejects this order.

And in the event that an agreement is not reached, the UK is supposed to abide by the terms of the “World Trade Organization”, effective January 1, 2021. It will also have to apply tariffs to incoming goods. the country from the European Union, which means that they will be affected by large taxes. To be able to sell their products in the European Union market, according to The Economist. For example, British car manufacturers will be exposed to 10% tariffs on exports to the European Union, which will amount to 5.7 billion euros annually. This would increase the average price of a British car sold in the Union by 3,000 euros.

About half of UK exports (46%) go to the European Union

The matter does not end there, as the European Union will begin to impose border controls on British products from January 1, 2021. This is something that the British government has recognized is expected to generate huge queues at the borders and delays continuous six months. Or more. And since Paris announced that it plans to immediately implement border controls at its ports, following Britain’s exit from the European Union without an agreement, London estimated that between 50% and 85% of truckers will not have the necessary documents to join the Union through France, according to the newspaper «Washington. To post “. It’s worth noting here that roughly half of British exports (46%) go to the European Union, making it its largest market, while more than half of UK imports (53%) come from of the block. In addition to the above, The Economist notes that London’s position as a global financial center may be threatened, given that the British economy is highly dependent on the service industry, which constitutes around 79% of it, while it reaches around 45% of exports.
On the other hand, some economists who support Britain’s withdrawal from the European Union believe that most of the world’s trade is conducted under the terms of the “World Trade Organization”, and that the Kingdom Kingdom will still have the ability to enter the markets of the European Union. But other economists and academics say that trading on the organization’s terms would hurt the British economy. From this point of view, the general director of “World Trade”, Roberto Azevedo, warned that the criteria and conditions “may slow down the recovery of Great Britain from the crisis left by the Coronavirus outbreak”, considering that “maintaining current measures may be better, “as quoted by the newspaper. “The Times” about him. Azevedo explained that although the conditions of the organization are not considered “catastrophic”, “they will impose a series of amendments that can be painful, especially with regard to some sectors.”

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