A communication from the UK on 1 February 2020 (WT/GC/206) has set out detail on the implications for the World Trade Organisation (WTO) of its departure from the European Union (EU). The communication notifies the WTO that the UK ceased to be a member of the EU at 23.00 on 31 January 2020.
The UK and the European Union have concluded a Withdrawal Agreement under Article 50 of the Treaty on the European Union providing for a transition period during which EU law (modified by the Withdrawal Agreement) will continue to apply in the UK. The transition period under that agreement will end on 31 December 2020 and the UK will not apply for an extension.
During the transition period the UK will remain part of the EU customs union and single market and will be treated as a member state of the EU for the purpose of international agreements concluded by the EU. The UK will therefore continue to apply the EU’s Generalised Scheme of Preferences during the transition period and the EU’s regional trade agreements will continue to apply to trade with the UK during that period.
On 24 July 2018 the UK circulated for certification a draft schedule of concessions and commitments for goods under the WTO’s Procedures for Modification and Rectification of Schedules of Tariff Concessions. Discussions on this are continuing with some WTO members and the UK has also initiated a process in relation to tariff rate quotas under which consultations are continuing with some WTO members.
With regard to the General Agreement on Trade in Services (GATS), on 3 December 2018 the UK circulated a schedule of concessions and specific commitments in services and circulated for certification a list of Article II GATS (MFN) exemptions. The period for objections to the certification of the schedule expired on 17 January 2019 and the UK is continuing consultations with one WTO member under these procedures.
In the transition period the UK will still be covered by the EU’s schedule of concessions and commitments on goods and schedule of concessions and specific commitments in services.
The UK has participated as an EU member state in certain other agreements including the Government Procurement Agreement, the Trade Facilitation Agreement, the Protocol amending the TRIPS Agreement and the Ministerial Declaration on the Expansion of Trade in Information Technology Products (ITA I and ITA II). During the transitional period the UK will continue to be treated as a member state of the EU for the purpose of these agreements and after the transition period has expired the UK will confirm its continued acceptance of the agreements.
The UK will continue to be treated as an EU member state for the purpose of the ongoing WTO disputes in which the EU is involved.
The UK notes that in 2020 it will support efforts to strengthen the multilateral rules-based trading system and modernisation of the WTO. The UK supports the role of the multilateral trading system in promoting growth, reducing poverty and opening markets and supports developing countries through its aid-for-trade portfolio.