Countries Seek Compensation For Brexit Delays

As a result of Brexit, fifteen countries, including Australia, the US, Brazil, India, and New Zealand, have announced their intentions to seek compensation for the loss of trade. These countries have expressed concerns about the global trade implications of Brexit.

Australian officials have reported that Brexit delays have already had a negative impact on their beef and lamb exports. Brazil has also raised concerns that the plans for Northern Ireland after Brexit could violate WTO rules.

The Main Issue for Global Trade

The fifteen countries have raised concerns that Brexit could put the “tariff rate quotas” system, which allows for easier access to the EU’s vast market for certain goods, at risk. This system permits a specific percentage of goods to be sold at a zero tariff rate, and after that limit is reached, tariffs are imposed on the remainder of the goods sold in the market. This system benefits farmers in other countries like Australia, who can sell their products in Europe and other trading groups more profitably.

The current quotas are established for the entire EU, including the UK. When Brexit is completed, there will need to be a discussion on how to divide this quota, and some countries have expressed concerns that they will have less favorable access than before.

Less Access Than Before

Australia has reported that the UK and EU have proposed different methods for allocating the quotas.

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