BoE Governor Market Carney emphasized in a BBC interview that in event of no-deal Brexit, tariffs will “automatically” apply with EU. This is in contradiction to Boris Johnson’s claim that UK could use the so called “Gatt 24” rule to trade with EU under current terms. Carney also warned that no-deal, no-transition Brexit should be a choice taken with “absolute clarity”.
Carney explained that “the Gatt rules are clear… Gatt 24 applies if you have a [withdrawal] agreement, not if you’ve decided not to have an agreement, or you have been unable to come to an agreement”. And, “we should be clear that not having an agreement with the European Union would mean that there are tariffs, automatically, because the Europeans have to apply the same rules to us as they apply to everyone else.”
Also, he noted around three quarters of UK businesses have already done as much as they could for no-deal Brexit preparation. However, he emphasized “it doesn’t meant they are fully ready, in fact far from it”.
