European Union Committee
Brexit: the options for trade

5th Report of Session 2016-17 - published 13 December 2016 - HL Paper 72

Contents

Summary

Chapter 1: Introduction

Brexit: Future frameworks for trade between the UK and the EU

Table 1: Possible frameworks for future trading relationship

Chapter 2: The UK’s trade as a member of the EU

Table 2: UK trade in values and shares (2015)

Table 3: UK goods and services trade shares (2015)

Table 4: Comparing the UK & the EU’s trade

The Single Market

Table 5: EU Treaty provisions relating to the Four Freedoms

Free movement of goods

Free movement of services

Free movement of persons

Free movement of capital

Enforcement

The EU’s external trade policy

‘Access to’ versus ‘membership of’ the Single Market

The future trade relationship between the UK and the EU

Conclusions and recommendations

Chapter 3: Membership of the European Economic Area

Box 1: The European Free Trade Area (EFTA) and the
European Economic Area (EEA)

The process for joining the EEA

EEA membership and free movement of people

Complying with EU law

Box 2: Non-EU EEA states’ influence over EU legislation

Reform of the EEA Agreement

Trade with the Single Market

Goods

Services

Dispute resolution

Box 3: The EFTA Court and Surveillance Authority

Trade with third countries

Conclusions and recommendations

Chapter 4: Membership of the EU’s customs union

Box 4: The EU’s customs union

Remaining part of the EU’s customs union

Trade with the Single Market

Goods

Services

Trade with third countries

Conclusions and recommendations

Chapter 5: A UK-EU free trade agreement

Box 5: Free trade agreements

Negotiating a FTA between the UK and the EU

Order of negotiations

Transitional arrangement

Trade with the Single Market

What could a UK-EU FTA contain?

Box 6: The EU’s FTAs with Canada and Switzerland

Goods

Services

Complying with EU law

Dispute resolution

Box 7: Dispute resolution in FTAs

Association Agreements

Trade with third countries

Conclusions and recommendations

Chapter 6: Trade under WTO rules

Box 8: World Trade Organisation (WTO)

Process of agreeing the UK’s schedules at the WTO

Issues in agreeing the UK’s schedules

Trade defence measures

Trade with the Single Market

Goods

Services

Dispute resolution

Box 9: Dispute resolution at the WTO

Conclusions and recommendations

Chapter 7: The Government’s approach

Analysis of the impact of Brexit on the UK’s economy

Engagement with stakeholders

Resources and capacity

Co-ordination across Government departments

Conclusions and recommendations

Chapter 8: Evaluating the frameworks

The EEA

The customs union

A free trade agreement

Trade under WTO rules

Trade-offs

A bespoke arrangement for the UK

Transitional arrangements

Sequencing of negotiations

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 www.parliament.uk/brexit-uk-eu-trade-inquiry and available for inspection at the Parliamentary Archives
(020 7129 3074).

Q in footnotes refers to a question in oral evidence.





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