Been waiting for 👇 🚨

Important story on what a “tariff-free” deal means in practice and why it’s not enough for two economies as closely integrated.

Tariffs are removed on goods that meet rules of origin. This is a complex and nuanced area of customs.

/1

Important to remember that trade deals (FTAs) weren't designed with such a high degree of economic integration in mind.

So some of the standard RoO provisions will seem incredibly restrictive under the UK-EU deal.

/2
Minimal operations or insufficient processing is a standard part of an FTA. Most, if not all FTAs, include a provision on minimal processing – processing not considered sufficient to confer originating status even if rules of origin have been met.

/3
It is standard procedure not to apply cumulation when goods have only been subject to minimal processing.

To be able to cumulate origin and consider the final product of UK origin, the processing carried out in the UK needs to exceed minimal operations.

/4
The level of integration between the UK and the EU means that this will have significant consequences for a number of industries.

For example, in supply chains where goods are brought into the UK from the EU and reassembled, sorted or repackaged and re-exported to ROI.

/5
The @Foodanddrinkfed raised this issue and the impact it will have on UK food and drink businesses (same goes for a number of other industries)

Some practical examples of how it works were covered in a brilliant 🧵by @faisalislam 👇

/6

https://t.co/4chCLNW0l9
Again, important to remember that it's a common provision. Just not a common scenario because the goods don't normally go straight back to where they came from.

This is how it's usually used:

/7
Solution?

For goods that originate in the EU and meet the rules of origin on the way in, it would be quite simple.

The EU Commission already has a number of origin-related derogations. Some examples here 👇

/8

https://t.co/wDvdlDKKKc
But the question is whether or not the EU will have any incentive to do that...

This provision impacts the UK supply chains much more than EU ones...

/ends

More from Brexit

A further thread on the EU/UK musicians/visa for paid work issue (the issue is paid work: travelling to sing or play at eg a charity event for free can be done without a visa).


The position that we now have now (no relevant provisions under the TCA) is complicated. For EU musicians visiting the UK see


In essence the UK permits foreign (including EU) nationals to stay up to 30 days to carry out paid engagements, but they must (a) prove they are a professional musician and (b) be invited by an established UK business.

Either condition could be tricky for a young musician starting out and wanting to play gigs. And 30 days isn’t long enough for a part in a show with a run.

Longer stays require a T5 visa - which generally requires you to be in a shortage occupation (play an instrument not played in the UK?) or to have an established international reputation.

You May Also Like