Economic impacts for Scottish and UK seafood industries post-Brexit: report
The report presents findings from research examining the possible impacts of EU exit on Scottish and UK seafood industries.
Appendix C: Scenarios
Detail on the scenarios is provided in Table C.1 (Scenario 1), Table C.2 (Scenario 2), Table C.3 (Scenario 3) and Table C.4 (Scenario 4) below.
Table C.1. Scenario 1 detail
Scenario 1 |
Trade Flow |
Tariffs and NTMs |
UK and EU Production |
||
---|---|---|---|---|---|
EU |
Non- EU |
UK |
EU |
||
Global Free Trade Agreement and increased UK production |
Imports (to UK) from |
Zero tariffs (no change) |
Zero tariffs (eliminate current trade barriers) |
UK production adjusts based on Zonal Attachment |
EU production adjusts based on Zonal Attachment |
Minimum level of non-tariff measures (equal to baseline):
Modelled at 5% |
Minimum level of non-tariff measures (below baseline):
Modelled at 10% |
||||
Exports (from UK) to |
Zero tariffs (no change) |
Zero tariffs (eliminate current trade barriers) |
|||
Minimum level of non-tariff measures (equal to baseline):
Modelled at 5% |
Minimum level of non-tariff measures (below baseline):
Modelled at 10% |
Table C.2. Scenario 2 detail
Scenario 2 |
Trade Flow |
Tariffs and NTMs |
UK and EU Production |
||
---|---|---|---|---|---|
EU |
Non- EU |
UK |
EU |
||
EEA-type agreement with EU (based on Norway’s), current trade arrangements with non- EU (grandfathering to UK, EU trade arrangements with RoW) and increased UK production |
Imports (to UK) from |
Tariff based on Norway EEA Agreement |
Maintain baseline tariffs |
UK production adjusts based on Zonal Attachment |
EU production adjusts based on Zonal Attachment |
Non-tariff measures based on Norway EEA Agreement (moderate NTMs):
Modelled at 10% |
Maintain baseline level of non-tariff measures (equal to baseline):
Modelled at 15% |
||||
Exports (from UK) to |
Tariff based on Norway EEA Agreement |
Maintain baseline tariffs |
|||
Non-tariff measures based on Norway EEA Agreement (moderate NTMs)
Modelled at 10% |
Maintain baseline level of non-tariff measures (equal to baseline):
Modelled at 15% |
Table C.3. Scenario 3 detail
Scenario 3 – Slightly Pessimistic |
Trade Flow |
Tariffs and NTMs |
UK and EU Production |
||
---|---|---|---|---|---|
EU |
Non- EU |
UK |
EU |
||
MFN tariffs on both EU and non- EU trade (default to WTO trade rules) and increased UK production |
Imports (to UK) from |
MFN tariffs |
Existing tariffs |
UK production adjusts based on Zonal Attachment |
EU production adjusts based on Zonal Attachment |
Default WTO rules on non-tariff measures (high level of NTMs):
Modelled at 15% |
Default WTO rules on non-tariff measures (high level of NTMs, equal to base):
Modelled at 15% |
||||
Exports (from UK) to |
MFN tariffs |
Existing tariffs |
|||
Default WTO rules on non-tariff measures (high level of NTMs):
Modelled at 15% |
Default WTO rules on non-tariff measures (high level of NTMs, equal to base):
Modelled at 15% |
Table C.4. Scenario 4 detail
Scenario 4 – Highly Pessimistic |
Trade Flow |
Tariffs and NTMs |
UK and EU Production |
||
---|---|---|---|---|---|
EU |
Non- EU |
UK |
EU |
||
MFN Tariffs on both EU and non- EU trade (default to WTO trade rules) and no increase in UK production |
Imports (to UK) from |
MFN tariffs |
MFN tariffs |
No adjustment in UK production to reflect zonal attachment (current quota allocations maintained) No change for model, i.e. production based on current (2011-15) annual average landings |
No adjustment in EU production to reflect zonal attachment (current quota allocations maintained) No change for model, i.e. production based on current (2011-15) annual average landings |
Default WTO rules on non-tariff measures (high level of NTMs):
Modelled at 15% |
Default WTO rules on non-tariff measures (high level of NTMs, equal to base):
Modelled at 15% |
||||
Exports (from UK) to |
MFN tariffs |
MFN tariffs |
|||
Default WTO rules on non-tariff measures (high level of NTMs):
Modelled at 15% |
Default WTO rules on non-tariff measures (high level of NTMs, equal to base):
Modelled at 15% |
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