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2019-12-09
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15 countries file WTO complaint asking for Brexit trade compensation from UK and EU

¡iĶ¤å¡jWhile the UK's Brexit deadlock remains unresolved, during negotiations at the World Trade Organization ¡]WTO¡^ recently, the member states were concerned about the negative impact of Brexit on international trade.

Australia even demanded compensation from the UK and EU for Brexit-related disruption to the Australian export industry, and requested that market entry by foreign countries should not be blocked after Brexit.

The claim won immediate support from 14 countries including the US, New Zealand, Canada, Uruguay and China.

The focus of the meeting was on the "tariff rate quotas" ¡]TRQs¡^ set by the EU on the imports of non-EU countries. According to the EU rules, the member states can make use of the TRQs scheme to impose lower or reduced duties on particularly the agricultural imports, allowing them to enter the EU market more easily.

For example, the Australian farmers selling beef to the EU under such scheme would enjoy reduced tariffs, making their business far more profitable.

The allocation of TRQs is currently centrally coordinated by the EU, but the UK is likely to allocate the quotas on its own after Brexit, potentially leading to a discrepancy in the calculation. Therefore, the non-EU countries might worry that the situation would make it more difficult for foreign enterprises to enter the EU and UK market.

The representatives of Australia said that the Brexit issue had complicated the tariff quota system.

Since Brexit had been postponed several times in March, April and October, Australian beef exporters who could not secure enough quotas could only reduce the amount of meat exports to EU and thus suffered economic losses, and the industry even faced great disruption in Christmas time due to the recent delay of Brexit in October.

Australia criticized the UK for delaying Brexit which caused adverse impact to Australian companies in exporting agricultural products to the EU, and demanded compensation from the EU and UK for all affected countries.

Other WTO members warned that the EU and UK might use up each other's tariff quotas and restrict imports from other countries. The US pointed out in a statement that non-EU countries would be ostracized after Brexit and this could severely hit its sales of pork and wine.

New Zealand also argued that it would be difficult for member states to estimate how would the import quotas be allocated by European countries after Brexit, and requested the UK and EU to ensure that foreign countries would not be blocked from entering the local markets or increase the existing quotas.

With regard to the agreement reached by the UK and EU, Brazil had also raised a concern about the plans for customs procedures between Northern Ireland and the UK, saying that it could breach the WTO's rules against discrimination. It was reported that the Brexit plans allowed only limited checks on goods between Northern Ireland and the rest of the UK, and provided an opportunity for goods to travel between Northern Ireland and other regions of the UK without tariffs, making it unfair to other countries.¡½Ãe¹Å»ö

Q&A

1. ¡u­^°ê²æ¼Ú¤½§ë¡v¡]Brexit vote¡^¬O©ó¦ó®ÉÁ|¦æªº¡H

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