International trade

Question 1

What is the EU?

Answer 1

The EU or European Union is a single political and economic union of 27 member countries. It is described as a unified body within which is there is an “internal, single market” and a “Customs Union”. It is a trade bloc.

Question 2

Who does who UK negotiate with post brexit?

Answer 2

The European Council – composed of heads of government of each EU country.

The European Commission – the EU “civil service” – equivalent of UK civil service.

The European Council of Ministers – the most powerful EU body whose remit includes having the final say on new EU laws, admission of new countries to the EU and EU budget.

The European Parliament – the only EU body directly elected by voters. The EU’s law-making body, like UK Parliament.

Question 3

What is free trade?

Answer 3

Involves trade between countries which is free from tariffs (a tax which is charged on goods), quotas (limits on the amount of a product which can be imported) or other non-tariff barriers (quality standards, technical requirements, regulations, laws, etc.

Question 4

Post Brexit issues?

Answer 4

1. Northern Ireland - UK and EU want to ensure there are no signs of a border between NI and RoI - would breach Good Friday Agreement 1998 - trade is making this difficult.
2. Disputes over fishing rights - EU boats need licences to fish in UK waters.
3. Impact on UK business - less exported goods to EU, means loss of business then loss of income/profit. Trade deals not so good as before. Trade deals take longer to be agreed.
4. Impact on Money - Remain: EU investment benefits UK public and private sector. Leave: Membership of the EU requires large financial contributions that could be better used at home.
5. Impact on security - Remain: security threats are better tackled through united approach. Leave: UK can tighten its borders to tackle potential threats.
6. Impact on National Sovereignty - Remain: UK could opt out of some EU policies. Leave: UK doesn’t have to accept imposition of any EU policies.
7. Impact on Jobs - Labour shortages because more paperwork is putting people off moving here.

Question 5

What is a trading block?

Answer 5

Groups of nations that work together to provide efficient terms for trading inside the bloc. The EU is.