Author: Loe Franssen, Janneke Rooyakkers

Exogenous shocks - Brexit (chapter 5 Internationalisation Monitor)

Trade in goods with the UK after Brexit: Truly tariff-free?

About this publication

Trade in goods with the United Kingdom (UK) has changed dramatically as of 1 January 2021. For example, there is now a physical border between the UK and the EU, where goods can be checked for compliance with international trade rules. In addition, goods traders may still face import tariffs if the goods do not comply with the rules of origin of the Trade and Cooperation Agreement (TCA). This study takes a first look at the Dutch trade in goods with the UK after the trade agreement between the EU and the UK came into effect. To what extent was import from the UK in the first eight months of 2021 actually tariff-free, and what costs have already been incurred on import duties? In addition, it highlights the product groups that are at high risk of being tariffed when re-exporting to the UK, as they have a high import content from non-EU countries which means they cannot qualify under the trade agreement's rules of origin.