“Supporters of Brexit are “completely wrong” if they think recourse to an obscure trade rule will stop tariffs springing up overnight if Britain leaves the European Union without a deal”, EU Trade Commissioner Cecilia Malmstrom said on Friday.
Some British politicians have suggested that in the event of a “no deal Brexit”, Article 24 of the World Trade Organization’s General Agreement on Tariffs and Trade can be invoked to keep Britain and the EU trading without tariffs.
“It is completely wrong,” Malmstrom told Reuters.
“They will have to trade with us and other countries, until there are trade agreements – and we hope that will be a trade agreement – on the ‘most favoured nation’ basis. And that will mean new tariffs.”
The “most favoured nation” basis is a misnomer because it means no special treatment.
Trade experts have repeatedly poured cold water on the idea that Article 24 could soften the economic blow of a “no deal” Brexit, but they say the claim keeps resurfacing.
Article 24 is a clause in the WTO rules that countries can use if they agree to a trade deal and want to declare an interim trade agreement, along with a plan and a timeframe for the full deal to take shape.
Brexit Party leader Nigel Farage wrote in February in the pro-Brexit Daily Telegraph that “if we apply to the WTO, and Article 24 of the GATT Treaty is used with both the consent of us and the EU, we would have a minimum of two years with no tariffs and quotas during which a trade deal could be concluded”.
On Monday, a former leader of Britain’s governing Conservative party, Iain Duncan Smith, explained in the same paper why he was backing Boris Johnson to succeed outgoing Prime Minister Theresa May.
“Boris… believes that we should offer a trade deal and, while that is being negotiated, we should seek an implementation agreement with the EU under which we will both go to the WTO and invoke Article 24, which allows us to continue tariff free trade until the final deal is agreed,” he wrote.
Did you know there is an online tool for anyone to look up barriers to their products and markets of interest? The WTO facility #ePingAlert is useful for exporters, importers, governments – big and small.
This is a great online tool that I use frequently.
Check a video about the facility here: The ePing Alert
“Well the change was made uptown and the Big Man joined the band….From the coastline to the city all the little pretties raised a hand”
10th Avenue Freeze Out, Bruce Springsteen
The Band he joined, Clarence Clemons, was the the best band this planet ever heard playing music, the legendary E Street Band.
“He had the nickname for a reason. He was big in size and in personality” Bruce Springsteen has said.
“He had the nickname for a reason”
He got the nickname Big Man, when he made a powerful entrance at a rock club where Bruce Springsteen played one evening. When he opened the front door, the door leaf detached from the hinges.
“Bruce and I looked at each other and didn’t say anything, we just knew,” Clemons said many years later. “We knew we were the missing links in each other’s lives.”
There has never been a better rock’n roll saxophone player than Clarence Big Man Clemmons.
Australian Border Force reports about a continued success for the Australian Trusted Trader Programme (ATT), one of the most modern and successful programmes and best practice examples in the world.
More than 150 Trusted Traders enjoyed a ‘seat at the table’ with government during the 2019 Australian Trusted Trader (ATT) Symposium in Brisbane. The ATT program reduces red tape for accredited Trusted Traders at the border and expedites the flow of their cargo in and out of Australia. Additional benefits were announced at this year’s Symposium including the Origin Waiver benefit, a Mutual Recognition Arrangement (MRA) with Singapore and an MRA with Taiwan.
We in KGH helped the Department of Immigration and Border Protection and Australuan Border Force to design, develop and implement the ATT. We are very pleased to see how Australian Border Force continues to develop and manage the programme in an outstanding way.
Yesterday we had a management team meeting for KGH Global Consulting in Soest, Germany.
These are some of my colleagues in the team. I am really happy to have the support of this group, when we continue to grow very fast.
OECD panel on Counter Illicit Trade by Enhancing Transparency in Free Trade Zones. Dr. Samir Hamrouni CEO of World Free Zones Organization (World FZO) explained SafeZone, the new compliance management concept we in KGH has developed for World FZO members.
The SafeZone project has been running for 18 months with five pilot zones and it will be presented and launched at World FZO annual assembly AICE 2019 in Barcelona 26-28 June this year.
It will be a landmark step forward for the compliance of the global supply chain when important free zones can apply to get certified as SafeZones to get further integrated into international value chains.