The EU council has agreed that after Brexit, tariff rate quotas (TRQs) will be divided with the UK based on usage by the EU27 and the UK. TRQs for agricultural goods are agreed by the EU with the World Trade Organisation (WTO) to allow a set quantity of product enter the EU below the set tariff rate.

An example of one such TRQ is an agreement for New Zealand lamb whereby 228,389t can enter the EU tariff free. However, as the TRQ was agreed on the basis that the UK was a member state, the EU has said the TRQs will need to be adjusted post-Brexit.

Divide

Under the proposal agreed by the EU council, TRQs will be divided between the EU and UK based on usage. In the example of lamb, the UK takes 50% of all New Zealand lamb imported into the EU and so they will receive 50% or 114,184t of the TRQ post-Brexit.

The agreement by the EU council will now have to be agreed by the European Parliament before it becomes EU law. The EU has also acknowledged that it will have to enter negotiations with WTO partners such as New Zealand for each of the affected TRQs.

However, as it would take some time to reach agreement with all interested parties, the EU has proposed proceeding unilaterally with the proposal for the period between Brexit and the conclusion of a final agreement within the WTO.

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TRQs to be divided between EU and UK based on usage

TRQs for agricultural goods are agreed by the EU with the World Trade Organisation (WTO) to allow a set quantity of agricultural goods enter the EU below a set tariff rate.