«Trade is easy»: Russia has taught the UK a lesson in WTO

© RIA Novosti / Alexei Vitvitskiy in photobacteria Minister Theresa may at the EU summit in Brussels«Trade is easy»: Russia has taught the UK a lesson in WTO© RIA Novosti / Alexei Vitvitskiy the image Bank

Until the end of October the UK should agree the terms of exit from the EU, but progress in the negotiations, which have continued since last summer, a minor. A separate issue — membership in the world trade organization. The British will probably have to negotiate with the WTO in the new environment.

As writes British The Telegraph, Moscow has taught London a lesson, blocking the proposal to move the tariff system in the WTO after leaving the EU. Because of this, the Kingdom is forced to negotiate with other countries about quotas on imports and exports.

According to the newspaper, it can create «many problems» and faces a trading loss. Economists, however, point out: the coordination of individual commitments to the WTO with its new member (and such, in fact, will Britain exit the EU) — a normal practice, which is nothing extraordinary.

The crux of the matter

Tariff system defines not so much the specific rates of a particular country as their maximum value. The Russian maneuver in any case, do not want the UK to continue to conduct business and trade even in the absence of a certified tariff plan, the newspaper said.

As explained by the Director of the Institute of free trade Alexander Daniltsev, we are talking primarily about tariff quotas. Tariff quota is a combined instrument where vnutrigornye and out rates can vary significantly.
To decide for yourself

«If there is a situation in which the UK will have to re-join the WTO, it will need to pass all procedures of coordination with all countries including Russia», — stated Alexander Knobel, Director of the research Center of international trade Ranhigs.

The lack of officially approved tariff system is likely to hinder cooperation with certain countries. In addition, they will be able to provide in London the pressure in the course of bilateral trade negotiations, warns the British media.

Nothing extreme

However nothing extreme in this process is not: this happens with any new member of the WTO. «When Russia joined the WTO, the US demanded some quotas for the supply of meat for himself,» recalls Daniltsev.

Another thing is that Britain was in a difficult situation, in part because of what we had lost international experience of such negotiations: the regulation was engaged in the European Union, and now we have to do everything from scratch on their own.

Anyway, the lock shows what challenges will face United Kingdom in the formation independent of the EU economy. The termination of previously signed trade agreements will hit London, says The Telegraph.