How Will Trade Work After a No Deal Brexit - Brexit Explained

We know a lot will change in the UK and EU if there is no deal reached between the two. However, one area which will be affected more than almost any other is trade. So how will trade operate in a no deal world?

This video was made in collaboration with SimplyDuty. SimplyDuty shared with us their knowledge and expertise when we were making this video and we are hugely grateful to them for there help. While they didn't pay to sponsor or advertise on this video we really wanted to shout them out and thank them for their help.

[joelthomastr]

So "most favoured nation" is a bit like Theresa May calling Jeremy Corbyn "the right honourable gentleman"

[alanjrubin]

Let’s face it, we’re probably going to end up with no deal

[Mele]

Our company has two factories. One in Britain one in the Netherlands.
I arrange the transports between them. I am not looking forward towards next year. :P

[artificialgravitas]

Don't forget that the WTO memebers have to accept your tariffs before you can use them and multiple have started disputes

[swanpride]

Close, but no cigar. For one, what is currently negotiated is not a trade deal, they are still negotiating the withdraw agreement, which is only about entangling the UK from the EU. Trade agreements won't be discussed until those basic arrangements are cleared up - and those arrangements cover pretty much everything. What you are describing is what will happen if the UK has a proper withdraw, but then doesn't manage to secure a trade deal during the transition period.

And that isn't even correct. It skips a number of complicated issues like the schedules aso. But above all, it plays down the effect considerably. We are talking about the UK being forced to deal with every WTO country on the standard conditions which are in place if no trade deal replaces them, meaning the worst conditions possible. Nobody does this. And if the UK wants to lower barriers ie for the EU, to keep the supply chains intact, without an agreement it would be forced to offer the same conditions to all WTO countries.

Trading under WTO rules means a loss of control, a lot of red tape and paperwork and it means that a lot of sectors in the UK will be put at risk.

[kaboodlefish]

Is this even remotely correct? Tariffs are part of the schedule and the schedule has to be signed off by the WTO, which will not happen in time for the 29th of March (it's likely to take years), so the entire premise of this tldr video seems flawed. My understanding is that if we exit with no deal (as seems likely) we'll be able to set our import tariffs, but countries importing from us will be required to impose significant duties in the region of 20-30%. So if you're exporting, THAT's what you need to be aware of. On 30th March your goods will cost significantly more to buy, whether the customer is in the EU or anywhere else in the world. If you export, you should be worrying about whether you will still be able to maintain your customers give the increased cost to them or whether there are suddenly much cheaper alternatives that your customer could choose.

[martinsharpek]

You said that they are negotiating a free trade agreement. As far as I’m aware of that is not the case, they are only negotiating the agreement to leave so the money we owe and the backstop. They won’t start doing a trade agreement until that is finalised.

I doubt we will have no deal because it’s in both parties interest to get one. We import far more than we export so it’s not like the eu has nothing to worry about.

[jdcano]

It just seems now that everyone is embracing the no deal option and all the proposals are just delaying the inevitable.

[kreolqq]

This video is incorrect, and very misleading. UK goods will not be treated the same as goods from the US, Canada, Switzerland, or most of the (exonomically important) world actually. That is because the EU has free trade deals and various kinds of smaller trade barrier relaxation deals with over 60 countries outside of itself. That includes the US and Switzerland (which were shown in the video as being the same as the UK post-Brexit).

[alanmcm]

The remaining 28 are far more concerned about EU security and future stability than any short term financial hit. Out is out.

[BeGunNer]

There's always a ton of unnecessary inaccuracies in slight favor of UK in these videos. Usually the number of UK citizens abroad is lower than ONS reports and number of EU nationals in the UK is higher than ONS says. Furthermore, it shows Switzerland as a "3rd country goods" and there is Switzerland, which is inaccurate and misleading. SWI is part of EEA and EFTA and for trading purposes behaves ALMOST like EU than China or USA.

[adrianduggan]

Why were videos like this not made before brexit referendum so people could actually have been educated

It's simple everyone in the EU will find a different supplier within the EU and buy from them. If you want to buy something in england you'll have to pay more, pay in euros, and expect a delay.

[eointolster]

Best case scenario, hard no deal brexit and then when they learn, they are welcome back

[SaturnusDK]

I'm not sure if you intentionally left out the part of that HM Treasury cannot set Trade Tariffs before these are accepted by _all_ 164 WTO members. This is not currently in place, and is unlikely to be in place by April 1st, which means the UK will not be allowed to trade on WTO terms at all.

[xjcoupe]

Serious question for Brexit supporters. After March 2019 what EXACTLY and PRECISELY gets better for the average wage earner and their families as they go about their daily lives. Nothing about sovereignty or making our own rules please.

[fedethefico]

Dear @TLDR News, your videos are interesting and informative, however, you forgot a major component of the Trade After Brexit -> SERVICES!

Most of trade is in services and WTO doesn't cover them, it is thus a major question to be asked.

[artman]

I love your cute country outline + flag characters. It makes the topic more interesting.

[IR]

England breaks every contract it ever made while in the EU by potentially walking away. Then shouts.. We are open to more contracts for business, also, you have to trust us that we will hold up our side of the new contracts, Yes, forget about our past and us breaking deals etc, as we are now more free to break more contracts at will. Yhea!!

[lvd]

Why don't we just all agree that a fast Brexit was a bad idea? Either no Brexit or one with a long period were Britain slowly leaves the EU.