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Which trade model could Britain try to replicate after leaving the EU?

Britain has voted to leave the European Union and is facing the prospect of setting up new trade deals with the 27 member states as well as other countries across the world.

Here are five trade models used by other countries outside the EU that Britain could try to replicate.

:: Norway

The Norwegian model was a phrase bandied around a lot during the referendum campaign. The country is a member of the European Economic Area and pays into the EU budget for this access. It is the model outside of the EU which is most integrated with the Single Market. However, without a seat at the table, Norway must require most of the rules without having a vote or veto over how those rules are made.

Norway also must accept the free movement of people and is part of the Schengen Area. The country has a higher share of EU migrants per capita than the UK.

:: Switzerland

Switzerland is not a member of the EEA, but the European Free Trade Association. This flexible agreement means it has a large degree of access to the EU market - though less than Norway - and it negotiates on sector-by-sector deals. Switzerland must contribute to the EU budget, but pays less than Norway.

Switzerland accepts more migrants from the European Union per capita than the UK and is part of the Schengen Area.

:: Canada

A trade deal between Canada and the EU has been seven years in the making and is still yet to be ratified. The agreement means Canada does not have to accept the free movement of people or make significant contributions to EU spending, but they are given preferential - though limited - access to the Single Market.

Like Norway and Switzerland, it also requires requires Canada to accept rules that it has no say in making.

:: Turkey

Turkey, a candidate for EU membership since 1999, has partial access to the Single Market, covering industrial goods and processed agricultural goods. In these areas it is required to implement laws similar to those of the EU. It does not contribute to the EU budget, but as a candidate for membership is a recipient of funding, mainly supporting reforms in the country's civil society.

When the EU signs an agreement with a third country, such as South Korea, Turkey must give that country access to its own market on the same terms. However, South Korea would then have no obligation to open its markets to Turkey on the same terms, and a separate deal must be negotiated.

:: World Trade Organisation model

This option would offer the most complete break with the EU. If no deals are reached before Britain leaves, then trade would be covered by the WTO rules. It means no free movement, contributions to the EU budget or implementing its rules but means tariffs on all goods and services exported from the UK. These tariffs include a 9.9% duty on cars and an average 12.2% on agricultural goods.


From Belfast Telegraph