The impact of UK and Eu government policy related to international trade

International trade is vital for the UK's prosperity. Through its international trade policy, the government aims to help UK businesses succeed internationally and encourage overseas companies to work with the UK. International trade is measured and recorded in the balance of payments. Currently the most important government policy in relation to international trade is the UK's membership of the EU. The Eu is in effect a single market that involves: 

• Common technical standards for EU products 
• Harmonised VAT and excise duties, so that there are no tax advantages 
• A free trade area with no trade barriers between member states 
• The free movement of people - Eu citizens are allowed to travel, study and work anywhere in the EU
• The free movement of capital, making it possible to invest money anywhere in the EU

Membership of the EU offers the following…