To ask Her Majesty's Government what assessment they have made of the implications under World Trade Organisation rules of goods entering from outside the EU if (1) there is no free trade agreement by 31 December, and (2) the UK permits the import of the same goods from the EU without the imposition of any tariffs.
The UK Global Tariff (UKGT) is the United Kingdom’s permanent most-favored-nation (MFN) tariff schedule. At the end of 2020 the United Kingdom will transition to MFN terms with all those nations that it does not have a free trade agreement with. In line with the Unit-ed Kingdom’s international commitments, the same tariffs will apply to all World Trade Or-ganisation (WTO) trading partners, unless an exception applies - for example, a free trade agreement (FTA) or other preferential arrangement is in place.
The UK Government intends to achieve an FTA with the EU by December 2020. We there-fore do not expect the UKGT to apply to EU imports. However, if we do not achieve an FTA by the end of the transition period, the UKGT will apply to the EU in line with the United Kingdom’s obligations under the WTO.
The UK Government will publish a Taxation Information and Impact Notice alongside the leg-islation for the UKGT as is standard practice. This notice will include the Government’s im-pact assessment.