Trade is critical to the UK economy, and approximately half of UK exports and imports are to and from the European Union (EU). The UK’s decision to leave the EU will impact on its trading relationships with the EU, and the rest of the world. The UK’s future success will be significantly influenced by the new model of UK-EU trade arrangements.
While EEF is calling for a future comprehensive free trade agreement between the EU and UK that does not involve higher tariff and non-tariff costs or administrative burden for manufacturers, the potential remains for new trade arrangements to result in friction in the form of barriers to market entry. This paper highlights ways in which this friction may present itself at the border between the UK and EU and beyond, and raises some of the key issues that manufacturers need to consider and address across their supply chains.