The European Union has free trade agreements [1] and other agreements with a trade component with many countries around the world and negotiates with many other countries. [2] While Australia is currently negotiating a free trade agreement with the EU, it does not yet have one. If the UK traded with the EU under “Australian terms,” it would not have favourable access to the EU market. British companies would face EU tariffs for export to the continent, and EU companies would face standard UK WTO tariffs when trying to export to the UK. A Brexit on the Australian model means there will be no trade deal with the EU. Although the EU has smaller agreements with Australia, which recognise product safety certification procedures for certain types of products. This allows Canada to trade almost entirely of duty-free goods with the EU, but it still faces more regulatory barriers to trade than EU countries. The Institute for Government says Canada`s agreement “allows very limited access to services” to the EU market. The European Union negotiates free trade agreements on behalf of all its member states, as EU member states have granted “exclusive jurisdiction” to conclude trade agreements. Nevertheless, the governments of the Member States control every step of the process (through the Council of the European Union, whose members are the national ministers of each national government). In the UK, in 2018, the EU accounted for 52% of its trade in goods and 44% of trade in services. Trade between the UK and the EU is almost six times higher in value than Australia`s trade with the EU, or $660 billion in 2018. But Australia itself is far from satisfied with its agreements with the EU and insists that better market access is a full-fledged trade agreement with the wealthy 27-person bloc and its 500 million potential customers.

“There must be an agreement with our European friends before the European Council on 15 October… If we do not reach an agreement between now and then, I do not see that there will be a free trade agreement between us, and we should accept it and continue. We will then have a trade agreement with the EU, like Australia.¬†When talks broke down this year, Johnson said Britain could also live with an agreement on the model of Australia. Given that Australia does not have a free trade agreement with the EU, domestic policy critics argue that this phrase is simply an understatement for a non-agreement. A trade agreement with “Australian conditions” could be described as a Mongolian or Afghan terms agreement. The 27 members who make up the EU today accounted for 672 billion pounds ($870 billion) in two-way trade with the UK last year, making the bloc by far its largest trading partner. (The UK and Australia have agreed on the continuity of the EU-Australia MRA as soon as the UK ceases to comply with EU trade rules next year) But what is the EU trade agreement with Australia? And if there is no agreement between the UK and the EU, would they act on terms similar to Australia`s? This explainer answers these and other important questions. While Northern Ireland remains in the UK`s customs territory, it is subject to EU tariffs on goods from the UK when they are at risk of entering the EU. Northern Ireland will also be subject to EU tariffs on products from Britain when they are partly produced in Northern Ireland. In addition, Northern Ireland will be subject to EU subsidy controls. Ultimately, these rules could apply to subsidies across the UK if UK public assistance could theoretically have an impact on trade between Northern Ireland and the EU, as established by the ECJ.