This Briefing Paper compares the preference utilisation rates (PURs) of both the UK and EU imports under the Trade and Cooperation Agreement. PURs tell us the amount of eligible imports that come in tariff-free (that is, preference eligible in a free trade agreement, the extent to which preferences are being used) and allow for the evaluation of the effectiveness of a trade agreement. We find that the utilisation of preferential tariffs differs between the EU and the UK. EU exporters are utilising preferences more than UK exporters and UK exporters tend to use preferences more where the value of trade is larger. The Paper analyses the distribution of PURs across products and composition issues to identify reasons for low utilisation rates.

Read Briefing Paper 72: PREFERENCE UTILISATION IN THE TCA: HOW ARE WE DOING?