Australia has recently raised doubts regarding the post-Brexit trade plans of the UK and EU which is aimed to share quotas for cheap food imports globally.
The limit set on number of products that would be traded into the EU on advantageous rates has been fixed across the confederation and such has generated uncertainties globally in which exporters may perhaps take a monetary hit once Britain officially exits.
The country has also settled with Brussels to split up its goods that can be transported in on small or zero tariffs based coarsely on the existing rates. Such would indicate that the foods traded into the UK would have the similar numbers.
Steven Ciobo as the Trade Minister of Australia has expressed his thoughts on the issue. He stated on reports that this could impose improper limitations on nations exporting to the coalition.
“The point is that you have a choice about where you place your quota at the moment,” Ciobo told reports. “Therefore, given that you could put it in the UK or you could put it into continental Europe, why would we accept a proposition that would see a decline in the quota available because of the Brexit decision?”
Aside from Australia, The US, New Zealand, Canada and Brazil also expressed their concerns on the quota-splitting plan.
“As we leave the EU, we will need to update the terms of our World Trade Organization membership to reflect an independent UK trade policy.” A spokesman for the UK’s Department for International Trade told reports. “We want to ensure a smooth transition which minimizes the disruption to our trading relationships with other WTO members and tariff rate quotas are one of the issues that we are discussing with them.
“This is largely a technical process and we will continue to engage WTO members including Australia in an open, inclusive and transparent way.”
Dave Harrison from New Zealand has also seconded the fact that its finances could have a negative impact if they were not accepted to select where to ingress comparatively of their goods. "We understand that Brexit causes a lot of difficulties for the European governments, but we don't think third countries should have to take a hit in terms of their negotiated legal rights as a result of that."
"We should be going to them and saying we have the ability - once we take up our chair at the WTO to do trade agreements with you that will include a certain amount of liberalization, depending on what you are prepared to give us.” Shanker Singham told reports. "But if you damage us on the way to reclaiming our seat on the WTO, we are not going to be able to do those deals with you."
FSM News is a daily updated news website about the happenings in the stock market, financial realms and the world economy. Subscribe to further educate yourself about the field that you are to partake in. FSM News is here for you.