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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MORE TIME FOR BREXIT

    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,

    The UK and the EU-27 have agreed on an extension to Brexit, with the new deadline for the UK’s withdrawal moved back to 31 October 2019. The UK may leave the EU earlier if parliament passes the Withdrawal Agreement agreed by the Government and the EU. The Government and the Opposition have engaged in talks […]

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    Commentary

    An Uncommon Approach to Brexit

      On 27 March, the House of Commons voted on eight approaches to “Brexit”, as alternatives  to the Withdrawal Agreement negotiated between the UK and the EU in 2018. Votes on these plans were indicative i.e. they were not binding on the government. In the event, all motions were rejected, including motions in favour of a […]

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      Commentary

      Planning for No Deal: The UK’s temporary tariff proposals

        With the UK parliament showing little sign of resolving its differences of opinion with itself on the UK’s departure from the EU, the UK government has published a list of customs duties that would apply “temporarily” in the event of a “no-deal“ exit. The government says that under such arrangements 87% of imports to the […]

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        Commentary

        More time for Brexit Negotiations?

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

          Extending the time limit for negotiating the UK’s withdrawal from the European Union looks increasingly like the only realistic course. But the difficulties and risks are enormous, not least because there is no common view as to the duration of that extension. And because of that, the risks of a “no-deal” outcome remain substantial. Background […]

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          Commentary

          Can CARIFORUM-UK Trading Relations Survive the Clouds of Uncertainty Hanging over UK-EU Relations?

            Brexit negotiations between the UK and the EU create a “policy externality”. That is, their outcome will have effects on third parties that have no direct say in the negotiations. The scope for these externalities increases the more these parties are dependent on the UK and EU for their trade, and the bigger the share […]

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            Commentary

            Brexit – Where now?

            Where the United Kingdom stands now UK politics are in turmoil following the Government’s last-minute decision on 10 December to postpone the House of Commons “meaningful vote” – which had been scheduled for the following day – on the draft UK/EU Withdrawal Agreement and its accompanying Political Declaration on future bilateral relations.  Ministers had been […]

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            Brexit – Wherever Next?

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

              BREXIT – WHEREVER NEXT? On November 14 2018 the United Kingdom Cabinet agreed, following what was described as an “impassioned” debate, to the draft EU Withdrawal Agreement and the associated Political Declaration on the future UK/EU relationship which had been negotiated by officials.  That opened the way for the EU 27 heads of government, to […]

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              The UK-EU Withdrawal Agreement and Political Declaration on Future Arrangements: Five Key Points for UK Trade Policy.

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

                In perhaps the most significant development since the UK voted to leave the European Union in June 2016, negotiators representing the UK and the EU member states have struck an agreement on the terms of the UK’s withdrawal from EU membership. Accompanying that draft Withdrawal Agreement is a draft Political Declaration that provides a framework […]

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                Commentary

                BREXIT – FOUR MONTHS TO GO

                Where we are now It is now almost a month since the European Council discussion of Brexit on October 17, which had for many months been the target date for agreement on the UK’s terms of withdrawal. That meeting produced no agreement, but also no surprises because expectations on both sides of the Channel had […]

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