WTO boss vows BREXIT will not disrupt trade
The head of the World Trade Organisation (WTO) Roberto Azevedo has told Sky News that he will work to ensure that there will be no disruption to trade caused by BREXIT. The worry is that, during or following negotiations with the EU, British trade call stall and UK companies be cut off from their customers around the world.
“Trade will not stop, it will continue and members negotiate the legal basis under which that trade is going to happen. But it doesn’t mean that we’ll have a vacuum or a disruption” Roberto Azevedo told Sky. Britain will have to renegotiate it’s membership with the WTO once they leave the EU, but it’s a relatively routine procedure a renegotiation won’t at any point leave Britain not a WTO member.
Roberto Azevedo stated that there is quite enough turbulence in economies around the world and that it was in no one’s interest for trade with Britain to be disrupted.
Of course the WTO wanting to ensure a smooth transition doesn’t mean that there won’t be hurdles for small businesses to negotiate. Marketplaces should make the technology seamless, but tariffs, excise duties and customs inspections along with associated paperwork would be most unwelcome for retailers and consumers used to freely trading across the EU. In reality retailers already have to handle these trade barriers when selling outside the EU, but that’s never stopped anyone exporting to countries like the US and Australia.
The biggest impact to trade is likely to be the end cost of products to the consumer and that currently looks to be at least as dependant on the fluctuating value of Sterling as it could be impacted by tariffs and duty in the future.
What are your biggest BREXIT worries, is it currency exchange, tariffs, tax and duties, paperwork or something else?