Thursday, July 9, 2020

LIZ TRUSS SAYS UK's BORDER PLANS AT RISK OF WTO LEGAL CHALLENGE

City A.M. 9 July 2020 - by Stefan Boscia



Boris Johnson’s post-Brexit border plans risk breaking international trading rules and could result in smuggling from the EU, according to international trade secretary Liz Truss.

Truss wrote a letter to chancellor Rishi Sunak and Cabinet Office minister Michael Gove on Wednesday warning that the UK’s current plans put the country at risk of several political and logistical problems.

Full border controls are not expected to be implemented between the UK and EU until July next year, after the post-Brexit transition period ends on 31 December.

Truss’ letter, seen by Business Insider, warned Sunak and Gove that the plans put the UK at risk in a number of areas.

She said they could lead to a WTO legal challenge; result in smuggling from the EU if UK ports cannot carry out checks straight away; and could threaten the state of the union if tariffs are levelled on goods sent to Northern Ireland.

She said the WTO challenge could come if the UK gives preferential treatment, in regards to its borders policy, to the EU in the event of no trade deal being agreed by 31 December.

Smuggling is also another major concern, according to Truss.

She wrote: “I would like assurances that we are able to deliver full control at these ports by July 2021 and that plans are in place from January to mitigate the risk of goods being circumvented from ports implementing full controls.”

On Northern Ireland, she added: “I understand that the digital delivery of the dual tariff system (both EU and UK tariff) in Northern Ireland is a high risk and that HMRC are planning to apply the EU tariff as a default to all imports in NI on 1 January 2021.”

A government spokesperson said they did not comment on leaks.

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