The government today released the much anticipated Brexit White Paper. The document has 77 pages and deals with 4 topics: economic partnership, security, cooperation and agreements with supranational institutions.

Here we return the key points to the economic partnership:

Goods and goods

“The UK proposes setting up a free trade area for goods and goods including agri-food … The UK and the EU would maintain a common set of rules … where the UK will make a preliminary ruling to agree to a continuous harmonization with EU rules on goods and goods, which will only cover the rules necessary for a smooth trade at the border. ”

The solution is aimed in particular at those industries which have “just-in-time” production processes (such as the car industry) as well as the re-establishment of a border between Northern Ireland and the Republic of Ireland.

The White Paper proposes a free trade area, which is very close to the European single market (except for the name).

The White Paper says that the role of the European Court of Justice (ECJ) comes to an end and makes a number of detailed proposals for joint institutional arrangements to monitor future economic ties. Contradictory to this, it appears that the ECJ is the ultimate legal authority over the EU rules with which the UK intends to commit to harmonizing.

duties

“The UK proposes to conclude a new facilitated customs agreement (FCA) with the EU. As in a cohesive customs territory with the EU, the UK would apply the EU tariffs and trade policy to goods and goods destined for the EU. The UK would apply its own tariffs and trade policy to goods and commodities intended for use and consumption in the UK “.

The government wants to use new technologies to make trade as smooth as possible. The UK would be required to collect EU tariffs (taxes or duties) at the British borders for the EU. The proposal appears extremely complex in administrative terms. The White Paper also notes that the new FCA Agreement needs a transitional period for its introduction, so it is unlikely to be available by the end of the separation period until December 2020.

EU agencies (supranational institutions)

“In some manufacturing industries, where more complex products have the potential to pose a greater risk to consumers, patients or the environment, a greater degree of regulatory control is used … the UK seeks to be more active in participating in these EU agencies (supra-national institutions) Participants, which includes adequate financial contributions, but without voting rights. ”

The White Paper confirms that the UK is seeking active participation in the European Aviation Safety Agency, the European Chemicals Agency and the European Medicines Agency. The EU had signaled in the past that there was no full membership of these agencies for the UK and that it would have to recognize the case law of the ECJ if it were to sign up to the rules and regulations.

Services

“The UK sees the need for a new and fair balance of rights and obligations as it leaves the EU and the European single market. The UK can no longer trade under the EU “passport” regime, as this is intrinsic to the single market, which will no longer be a member. ”

The section of the White Paper on Services confirms that the UK is looking for a looser relationship with the EU for roughly 80% of the UK economy. However, the government is looking for a higher-quality solution than the “equivalence” regime that the EU has with most third countries (part of the problem is that this regime can be withdrawn by both sides with a deadline of just 30 days).

Persons

“Future agreements of any kind on personal mobility will be consistent with ending the free movement of persons, respecting UK control over their borders, and the government’s goal of controlling and reducing net immigration.”

The White Paper emphasizes repeatedly that free movement of persons will come to an end. The details of a new immigration policy will be given in a separate White Paper, but there are indications in the present White Paper.

There are proposals for a mobility framework that is quite common in trade agreements. It could u.a. be allowed “that citizens can travel freely, without visas, for purposes of tourism and temporary business activities.”

BBC News from 12.07.2018, in cooperation with Dunamis Mind – Your London Tax Experts