European Union Committee
Brexit: trade in goods

16th Report of Session 2016-17 - published 14 March 2017 - HL Paper 129



Chapter 1: Introduction

The EU Committee’s work

Brexit: future trade in goods

Chapter 2: UK production of goods

Goods and services

Box 1: Dividing goods and services

Manufacturing in the UK

Figure 1: GVA of manufacturing to the UK and EU economy as percentage of GDP 2000–2015

Figure 2: Manufacturing location quotients

Sectors considered in this report

Pharmaceuticals and chemicals

Capital goods and machinery

Food and beverages

Oil and petroleum


Aerospace and defence

The competitiveness of the UK economy after Brexit

Availability of workers

Research collaboration and funding

The Government’s industrial strategy

Conclusions and recommendations

Chapter 3: Goods—UK exports and imports

Trade in goods


Table 1: UK exports to the EU and percentages of total UK exports 2015 (£ million)

Table 2: Destination of UK goods exports 2015

Figure 3: Percentage of goods exports accounted for by the EU 2005–15


Table 3: UK imports from the EU and percentages of total UK imports 2015 (£ million)

Table 4: Source countries of UK goods imports 2015

Conclusions and recommendations

Chapter 4: Tariff barriers

Box 2: What are tariffs?

Impact of tariff barriers on UK-EU trade

Figure 4: Average final bound tariff rates applied by the EU relating to the sectors considered in this report

Pharmaceuticals and chemicals

Capital goods and machinery

Food and beverages

Oil and petroleum


Aerospace and defence

Box 3: Inward Processing Relief

Establishing a UK tariff regime

Conclusions and recommendations

Chapter 5: Non-tariff barriers

Box 4: Non-tariff barriers

Rules of origin

Box 5: Rules of origin

Impact of rules of origin on UK businesses

Laws and regulations, standards and EU agencies

Laws and Regulations

Box 6: The Great Repeal Bill

EU agencies and standards

Conclusions and recommendations

Chapter 6: Costs of administering tariff and non-tariff barriers

Costs through increased administration

Box 7: Administrative requirements and customs procedures

Tariff-related administrative costs

Non-tariff barrier-related administrative costs

A new arrangement on customs?

Conclusions and recommendations

Chapter 7: The EU and preferential trade with third countries

Existing EU preferential trade arrangements

EU FTAs with developed countries

Box 8: The EU-Korea FTA

Table 5: UK Trade with Korea

EU FTAs with developing countries

Box 9: The EU’s trade with developing countries

Sectoral views on post-Brexit preferential terms with third countries

Priority countries for new FTAs

Substituting EU trade with non-EU trade

Conclusions and recommendations

Chapter 8: Summary of sector issues

Aerospace and defence

Chapter 9: Investment and business climate

The value of sterling

Figure 5: Value of sterling against the US dollar, February 2016 –February 2017

Impact on exports and imports

Impact on sectors and prices

Certainty and investor confidence


Box 10: Nissan’s investment in the UK

Conclusions and recommendations

Chapter 10: The Government’s view

Negotiating a FTA

A transitional agreement

Resources and capacity



Engagement with business and investors

Conclusions and recommendations

Summary of conclusions and recommendations

Appendix 1: List of Members and declarations of interest

Appendix 2: List of witnesses

Appendix 3: Glossary

Evidence is published online at and available for inspection at the Parliamentary Archives (020 7129 3074).

Q in footnotes refers to a question in oral evidence.

© Parliamentary copyright 2017