What would change?
- Prices could go up for the goods the UK buys and sells from and to the EU. That’s because the UK and EU would trade on World Trade Organization (WTO) terms – the basic rules for countries without trade deals.
- The EU would impose taxes (known as tariffs) on goods coming from the UK. The average is about 2.8% for non-agricultural products, but 10% for cars and more than 35% for dairy products. That would put some industries under pressure.
- With the UK also imposing tariffs on some EU goods – they could become more expensive. But the price of some things imported from the rest of the world could fall because their tariffs are being cut.
- There are big questions about services. The UK has been waiting for a decision about whether the EU will recognise UK rules for financial services. Without that it will be more difficult for UK firms to operate in the EU. Some banks have already moved offices and staff to EU countries.
- Duty free shopping will return, but there will be limits on the amount of alcohol and tobacco you can bring into the UK from the EU without paying extra duty.
- Trade with the EU for UK companies will involve customs declarations, extra border checks, certificates, licences and special labelling for some types of foods, plants and live animals.
Source BBC
