Trade Bill

Explanatory Notes

Financial implications of the Bill

110 Schedule 4 will have immediate financial implications as it provides for the creation of the TRA and sets out, amongst other things, how the TRA will be funded. It is estimated that the costs of funding the TRA could amount to £15-20m annually, paid for out of the Consolidated Fund. The final amount and timing of any financial implications depends on the outcome of negotiations with the EU and on policy decisions yet to be taken. Further detail on the financial implications of the TRA is set out in the impact assessment on trade remedies accompanying this bill.

111 The other provisions of the Trade Bill that have immediate financial implications are clause 2. The power contained within clause 2 will only be used to ensure that trade agreements that are already in place (or will be at the point that the UK leaves the EU), remain operational for the UK after leaving the EU. As a result, there should be no significant costs to business, however, some costs, such as those associated with familiarisation, may arise as a consequence of the specific changes to secondary legislation. These specific changes will only be determined following further discussions with partner countries on how to transition the agreements effectively.

 

Prepared 10th November 2017