To ask the Secretary of State for International Trade, what assessment she has made of the effect of the lack of exceptions for originating imports from developing countries in the UK-EU Trade and Cooperation Agreement on (a) the profitability of businesses in developing countries and (b) the level of EU market access for UK exporters using components imported from developing countries.
This agreement creates a new relationship between the UK and the EU, a relationship based on free trade and friendly cooperation between sovereign equals. The UK will be a global champion for free trade – benefitting businesses, reducing costs for consumers, and helping the poorest countries in the world achieve genuine economic independence.
The Government has been clear that leaving the Single Market and Customs Union will result in new customs processes for businesses trading with the EU. We are moving to a Free Trade Agreement (FTA) relationship, and Rules of Origin are a standard part of all FTAs. We worked closely with industry throughout negotiations to secure modern and appropriate Rules of Origin that support tariff free trade with the EU across all sectors. This includes full bilateral cumulation with the EU, which is critical to protecting our highly integrated supply chains, as well as sectoral rules that reflect the nature of UK-EU trade.