Why the WTO isn't something to fear

Why a no-deal Brexit is nothing to fear

The WTO oversees a system of trade rules for its 164-member countries, which together account for no less than 98 per cent of all global trade. Under the WTO General Agreement on Tariffs and Trade (the GATT), tariffs on most manufactured goods between the UK and the EU would stay quite low, averaging around 3 per cent.

While EU leaders like to threaten us with hints that our exports would be unsellable in the EU, the fact is that non-tariff barriers such as arbitrary health and safety inspections and borders would be prohibited under the WTO’s Sanitary and Phyto-sanitary (SPS) and Technical Barriers to Trade (TBT) agreements. The UK intends to retain conformity with EU regulations following Brexit, at least for the time being, meaning that the existing low levels of health and safety risks to the public in UK products will not change in the days after Brexit. There would, as a result, be no grounds for the EU to exclude our goods from its markets.

The WTO’s new Trade Facilitation Agreement obliges the EU to maintain borders which are as frictionless as possible, using modern technologies such as pre–arrival processing of documents and electronic payments. Discrimination against foreign products through all sorts of internal regulations is forbidden. These rules are enforced by a well-respected international tribunal which has a high rate of compliance and cannot be overruled by the European Court of Justice.

 

Read the full article by David Collins in The Spectator