EU-UK Partnerships

The negotiations that took place in 2017 between the EU and the UK, after the latter had formally invoked Article 50 of the treaty of Lisbon, focused on the terms of the UK’s withdrawal from the Union. On December 15, the European Council decided that sufficient progress on these talks had been achieved to allow the EU and the UK to progress to the next phase of the talks. This phase will focus on the nature of the future partnership between the EU and the UK. The UK for its part has called for a deep and comprehensive free trade agreement to be concluded.

The UK has already signalled its wish to leave both the single market and the customs union. In various position papers issued over the course of 2017, it has called for a deep and comprehensive free trade agreement. It has also pointed to the benefits of ensuring that trade between the UK and the EU remain as “friction free” as possible. The Trade Bills and Customs Bills presented to parliament also clearly envision that the UK will be able to negotiate trade agreements with the rest of the world.
In order to ensure that the transition to new arrangements is not disruptive, the UK has also proposed a two-year transition period during which it current arrangements would continue to apply. The EU Council has interpreted this to mean that during that time, the UK will remain within the single market and apply all its rules, and be part of the EU’s customs union and common commercial policy. The latter would rule out any formal negotiations between the UK and non-EU partners.
There are currently around 280 free trade agreements worldwide that are in force and that have been notified to the WTO. But the future UK-EU trade partnership is in a category of its own since (i) liberalisation within the EU, including the UK, has gone much further than in any other trade agreement in the world; and (ii) the starting point for most trade negotiations is that countries seek to increase their level of integration with each other, whereas in this case, the aim to renegotiate the nature, and possibly level, of integration between parties.
This in turn raises critical issues as to how the renegotiation could be conducted in a way that manages risks to citizens and businesses. The publications posted below provide some initial analysis of the issues and options facing negotiators.

 

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Commentary

An enhanced UK-Switzerland FTA: What’s on offer?

    The UK and Switzerland have announced that, after a year of exploratory talks, they will start formal negotiations on an “enhanced” Free Trade Agreement (FTA). The two countries had also announced last year that they would try and conclude a mutual recognition agreement on financial services by the end of 2023. We consider some of […]

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    Commentary

    Key Takeaways from UK Trade Policy Forum.

    The Centre for Inclusive Trade Policy in conjunction with Chatham House and Resolution Foundation held their first UK Trade Policy Forum since the Covid-19 Pandemic on February 28th, 2023. This forum provided an opportune time to reflect on the aftershocks of the pandemic, Russia’s war in Ukraine and what exactly is happening at Number 10 […]

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    Commentary

    Trade Knowledge Matters Podcast – Season 1 Review

    This year we decided to try something new with TKE and launched our very first podcast, ‘Trade Knowledge Matters’. When we first had the idea, we hadn’t anticipated the upheavals that would affect us all this year. Creating this medium for us has been quite the adventure and encouraged each of us to step out […]

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    Commentary

    Ireland: Caught in the Toils Of Brexit

      In our post entitled Brexit and the Irish border issue dated 9 February 2018, we wrote: The Issue of Brexit and the Irish border – how to avoid creating some form of border within the island of Ireland – has emerged as one of the most difficult in the entire Brexit negotiation. Three and a […]

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      Commentary

      Reflections on the UK-EU Trade and Cooperation Agreement

        Agreement at last After more than four years of seemingly interminable negotiation following the United Kingdom’s 2016 referendum decision to leave the European Union, the parties finally concluded a Trade and Cooperation Agreement (TCA) at the very last practicable moment, on Christmas Eve 2020.  Ratification was rushed through both Houses of the UK Parliament on […]

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        Commentary

        Bridge over troubled waters? The EU-UK Trade and Cooperation Agreement and the future of UK trade policy

          The EU flag and the UK flag. Post-Brexit Trade.

          After long and arduous negotiations, the European Union and the United Kingdom signed a Trade and Cooperation Agreement  (TCA) on 24 December 2020. The agreement establishes the basis for the relationship between the two parties from 1 January 2021 onwards. The TCA largely corresponds to what we projected  close to 3 years ago, given the […]

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          Commentary

          Brexit: Be careful what you wish for

            The EU flag and the UK flag. Post-Brexit Trade.

            Brexit: Be careful what you wish for   There now seems every likelihood that the United Kingdom and the European Union will fail to reach a formal and definitive agreement on future trade and economic relations to take effect from 1 January 2021.  Thus at the end of the agreed “transition period” on December 31, […]

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            Commentary

            EU-UK: The Chips Are Down

              International trade in goods, Trade services, Professional services brexit, brexit professional services, brexit network, trade expertise, trade expertise network, Trade knowledge, trade knowedge exchange, trade compliance, trade tools, barriers to international trade, effects of tariffs, brexit trade, brexit trade deals, post brexit trade deals, post-brexit trade deals, brexit trade, brexit trade deals, trade after brexit, brexit trade agreements, brexit analysis, trade analysis,

              Introduction – a dialogue of opposites During the last week of February the European Union Council of Ministers formally endorsed the draft mandate which the European Commission had submitted, setting out objectives for a new long-term relationship with the United Kingdom.  A few days later the UK Government published a White Paper specifying its own […]

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              Commentary

              A tricky triangle: the UK’s negotiation positions for FTAs with the US and the EU

                The UK has published, in quick succession, its negotiating position for free trade agreements with, respectively, the European Union and the United States. It is an ambitious project. Few countries have attempted parallel bilateral negotiations with both the US and the EU simultaneously. Substantial differences between these two parties, especially on key issues of regulation, […]

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