Post-Brexit trade models for UK

NORWAY MODEL

Membership of European Economic Area gives access to EU single market as long as Norway pays contributions to EU budget and plays by EU rules

Accepts free movement of people but is exempt from EU rules on fisheries and farming policy

Downside is that Norway has no say over how rules of single market are created

TURKEY

As part of EU’s customs union, Turkey faces no tariffs on industrial exports to EU. Areas such as services and agriculture are excluded

Turkey must also impose EU’s common external tariff on goods imported from outside EU – and
has no say in setting tariffs

WTO OPTION

If no deal is reached before Britain leaves, trade rules would default to World Trade Organisation rules

No free movement, contributions to EU budget, or abiding by EU laws, but tariffs imposed on all goods and services exported from UK

SWITZERLAND

Has over 120 bilateral trade agreements with EU, which give access to Europe’s markets for most industries except for services sector, which accounts for 80% of UK economy

Accepts free movement and contributes to EU budget, but is not obliged to apply EU laws

But trade deals now in danger after referendum in 2014 voted in favour of capping EU immigration

CANADA

Trade deal with EU – due to take effect this year – will eliminate tariffs on all industrial and most agricultural products

Crucially, financial services are excluded and London-based banks would be hit hard if same applied to EU-UK deal

Companies exporting to EU would also have to comply with product standards and technical requirements without having any input in setting them

Source: Wire agencies