Welcome to UK Trade Policy ObservatoryRead our latest briefing papersSee recent updates on our blog page
Trade policy animated videos
Our animated videos help to explain the effects of trade policy. This video explains direct and indirect ways of trading services internationally, and looks at the implications for trade policy, particularly trade agreements.
For more trade explainers, visit our animations page.
Briefing Paper 38 – DESTRUCTION OF THE UNION: TOO HIGH A PRICE TO PAY FOR A US TRADE AGREEMENT
The importance of EU rules to maintaining open borders within Ireland has been at the centre of UK and EU negotiations. Yet what is less appreciated is the significance of those rules for achieving frictionless trade between England, Scotland and Wales. In this Briefing Paper, the authors highlight that leaving the EU could create new border trade barriers inside the UK, and opens up questions about how – and whether – the devolved nations will unite with England on external trade agreements. They argue that a US trade negotiation poses a serious threat to the unity of the United Kingdom because it would likely require changes to UK domestic legislation in very sensitive areas, including drug pricing and food safety regulation, which Scotland, with its large Remain-voting majority and stated desire to maintain alignment with EU regulation, would strenuously oppose. The authors argue that devolved nations should have a formal role in the setting of UK negotiating objectives, to ensure, among other things, that external trade agreements do not lead to internal trade barriers. Read Briefing Paper 38: DESTRUCTION OF THE UNION: TOO HIGH A PRICE TO PAY FOR A US TRADE AGREEMENT
Briefing Paper 39 – RECOMMENDATIONS ON THE UK GOVERNMENT’S GLOBAL TARIFF PROPOSALS
The UK left the European Union on January 31, 2020. As the UK Government begins to develop the UK’s independent trade policy for the post-transition period, one part of the preparations is to establish the UK’s independent tariff schedule that will apply to goods imported into the UK. In February 2020, the Department for International Trade launched a public consultation concerning the UK’s applied Most Favoured Nation tariffs. This briefing paper outlines the proposals under consideration, discusses their potential implications, and provides our recommendations on the issues that we believe are important for the UK Government to consider when formulating the UK’s trade policy going forward. We explore the structure of the UK’s MFN tariff as a member of the EU and then analyse the potential impact of simplifying the tariff structure for firms, households, the environment and domestic policy objectives. Read Briefing Paper 39: RECOMMENDATIONS ON THE UK GOVERNMENT’S GLOBAL TARIFF PROPOSALS
Briefing Paper 41 – THE UNRESOLVED DIFFICULTIES OF THE NORTHERN IRELAND PROTOCOL
In this Briefing Paper, Michael Gasiorek and Anna Jerzewska provide an analysis of the UK’s recently published Command Paper. They argue that it highlights significant differences between the UK and the EU and does not fully address the challenges which come from the special situation around the border in the Irish Sea. As a result, they warn that businesses should expect more paperwork, bureaucracy and additional costs on trade between Northern Ireland and Great Britain when the transition period ends in seven months’ time. Among the key stumbling blocks between the UK Government and EU that the Command Paper fails to resolve are the criteria for determining when a good is not at risk of moving into the EU market and would therefore not be subject to tariffs. Furthermore, permitting goods from Northern Ireland to freely enter Great Britain, could impact on the UK’s trade relations with third countries and even lead to WTO disputes. Read Briefing Paper 41: THE UNRESOLVED DIFFICULTIES OF THE NORTHERN IRELAND PROTOCOL