Christopher Chope – 2016 Parliamentary Question to the Department for Business, Innovation and Skills
The below Parliamentary question was asked by Christopher Chope on 2016-03-01.
To ask the Secretary of State for Business, Innovation and Skills, what automatic access (a) the UK would have to the markets of other WTO members and (b) other WTO members would have to the markets of the UK if the UK leaves the EU.
Anna Soubry
The paper published on 2nd March entitled “Alternatives to membership: possible models for the United Kingdom outside the European Union” makes clear that if the UK were to leave the EU, then unless we were able to negotiate a preferential trade deal under WTO rules neither the UK nor the EU could offer each other better market access than that offered to all other WTO members. Furthermore, our privileged access to 53 markets outside the EU through the EU’s Free Trade Agreements would be terminated. We could seek to negotiate new agreements, but this would take many years. It would be difficult to replicate the terms that we currently enjoy.
A WTO-only arrangement would create a particularly difficult dilemma for the UK over trade tariffs. We could extend the tariffs that the EU currently applies to all WTO members to UK imports from the EU, but this would make those imports more expensive. Conversely, lowering UK tariffs would make imports cheaper, but there is no guarantee that this would be reciprocated. In addition, our guaranteed access to global services markets, including within the EU, would revert to the basic level of access that WTO members offer through the General Agreement on Trade in Services (GATS).
