The purpose of this analysis is to identify what is most important for Sweden in a future EU-UK agreement, in order to mitigate the negative effects of Brexit. The key sectors proposed as Swedish priorities will need to be particularly important for Sweden's trade with the UK and sectors in which Brexit might lead to significant trade barriers.
The risks posed by Brexit seem to be relatively limited in some of the sectors where Sweden has very specific interests (mineral oils, paper, wood, iron and steel, protection of intellectual property and retail trade). However, that only means that the regulatory framework for bilateral trade in a 'no-deal' scenario, compared to the current situation, does not appear to create significant problems for those sectors as a whole. Still, individual companies may be adversely affected, especially if their products are price-sensitive. Even if trade in goods within these sectors will not be faced with high customs tariffs, Brexit will mean more administration and more requirements to be met, such as customs formalities. This will increase costs for business.
We conclude that focus should be on two sectors in particular: motor vehicles and business services. Motor vehicles is a sector with detailed technical rules and high tariffs. In this sector, a solution similar to those the EU already has with Switzerland, Japan and South Korea may be needed in order to avoid significant trade barriers.