Brexit has dominated as the defining political, economic, and social topic of conversation for the past few years. Even more so as we draw closer to the deadline with little certainty in sight. It has been more than two years since the referendum, and nearly 5 years since former Prime Minister David Cameron introduced the idea; yet we are still no closer to knowing what a UK outside of the EU will look like.
Potential plans have included a Customs Union, Single Market, Norway-style, Canada free trade agreement and EEA. What do these mean and what are the differences? With that in mind, BlondeMoney has created a Brexit Matrix to explain. BlondeMoney is the sister company of Ridgefield Consulting and is headed up by Simon’s sister, Helen Thomas. The macroeconomic advisory firm specialises in Brexit research.
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Currently, the Government have been proceeding with what is termed the ‘Chequers Agreement’. In summary, it is a ‘common rulebook’ which clearly defines how goods and products should be able to freely travel between the EU and the UK. It has however been criticised for its lack of practical guidance on how non-goods trading will be achieved including people, services and capital. It remains an area of fierce contention and implementation has yet to be agreed upon between the EU and the UK.
- Single Market (SM): this is unique to the EU and removes all non-trade and trade barriers between those countries within it. Put simply, being in the Single Market guarantees the EU’s ‘Four Freedoms’. The free movement of people, goods, capital and services.
- Customs Union (CM): a customs union is an agreement between countries to remove all trade tariffs on goods. Specifically within the Single Market, there is a Customs Union for goods.
- FTA: Free Trade Agreement
- CETA: Stands ‘Comprehensive Economic and Trade Agreement’. It is a free trade agreement between the EU and Canada. It took nearly 7 years to negotiate and removes 98% of all trade barriers
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