The Government has set out its position on the Future Economic Partnership (FEP) with the EU in the Political Declaration and White Paper on ‘The future relationship between the United Kingdom and the European Union’. The FEP will be consistent with the UK’s ambitions as a global trading nation, recognising the development of our independent trade policy beyond the economic partnership with the EU.

Alongside its work to negotiate market access and trade deals, the Department for International Trade (DIT) continues to help businesses to export, encourage and facilitate inward and outward investment, and champion global free trade. DIT’s objectives are set out in its Single Departmental Plan, available on GOV.UK.

“Negotiating a free trade deal with the US is a high priority for the Government after we have left the EU. Under the terms of the Withdrawal Agreement and Political Declaration the UK would have scope to negotiate an ambitious agreement with the US. We would have an independent trade policy covering goods and services and we would be able to set our own tariffs.

The Government has committed to publishing a scoping assessment prior to launching negotiations – presenting the potential economic impacts of a trade deal with the US.”

The agreed Protocol guarantees that even in the unlikely event that the UK’s future relationship with the EU is not in place by the end of the implementation period, the UK will have a sovereign choice whether to bring into effect a temporary single UK-EU customs territory or to extend the implementation period for a short period of time until the new economic relationship is in place.

The single customs territory option replaces the EU’s proposal for a Northern Ireland-only customs ‘backstop to the backstop’ with a UK-wide solution. It would guarantee no tariffs, quotas or rules of origin between Northern Ireland and the rest of the UK, or between the UK and the EU. As such, the agreed position safeguards the economic and constitutional integrity of the United Kingdom and ensures people and businesses that rely on an open border between the Northern Ireland and Ireland can continue living their lives and operating as they do now.

Both the UK and the EU are committed to developing alternative arrangements to replace the backstop.The Political Declaration is clear that this includes looking at how facilitative arrangements and technologies can avoid a hard border. The UK and EU are legally obliged to use their best endeavours to conclude such an agreement by 31 December 2020.

The UK will be leaving the Customs Union and Single Market.

In line with the Government’s White Paper ‘The future relationship between the United Kingdom and the European Union,’ the UK will be free to conduct tariff negotiations with other countries after 29^th March 2019, for post Implementation Period tariffs.

We are looking at a full spectrum of options for the future tariff regime and are considering carefully the evidence available before making a final decision that will serve the best interest of British industry and consumers.

This issue is the subject of a letter of formal notice of infraction from the Commission as the first stage in possible legal proceedings. The government is carefully examining the formal notice and will respond to the Commission in due course. The government does not recognise the Commission’s estimate of alleged duty loss.

The government is already in correspondence with the Commission regarding this issue, which relates to past transactions. As set out in the government’s response to Question 118571, HMRC has a comprehensive strategy for tackling suspected customs fraud.

The government treats the issue of customs duty undervaluation fraud very seriously, and has taken reasonable and appropriate steps to address suspected fraud.

The response to suspected fraud continues to evolve as new information becomes available and through learning from ongoing operations. HMRC’s current approach includes physical pre-clearance checks targeted at high risk traders, including requiring importers to provide security before suspected undervalued goods are released and seizing mis-described goods. In addition trader monitoring is in place to examine supply chains and check documentation, and post-clearance compliance activity includes cross-tax audits to check the credibility of information provided.

The government does not recognise OLAF’s estimate of alleged duty loss.

The UK wants to ensure a smooth transition in the World Trade Organization (WTO) which minimises disruption to our trading relationships. We are, and will continue, to discuss our proposals on tariff rate quotas, and other matters, extensively with our partners in the WTO over the coming period.

The government has undertaken a significant amount of work to assess the economic impact of leaving the EU. This is part of our continued programme of rigorous and extensive analytical work on a range of scenarios on a sector by sector basis.

We want to conclude a deep and special partnership with the European Union. This includes pursuing a new customs agreement that allows for the freest possible trade in goods and services between the UK and EU member states.

The government has undertaken a significant amount of work to assess the economic impact of leaving the EU. This is part of our continued programme of rigorous and extensive analytical work on a range of scenarios on a sector by sector basis.

We want to conclude a deep and special partnership with the European Union. This includes pursuing a new customs agreement that allows for the freest possible trade in goods and services between the UK and EU member states.