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| Bloc could end up on better terms with the Commonwealth nations after Brexit than UK |
Daniel
Boffey in Brussels
Boffey in Brussels
Liam Fox had recently spoken of
‘reinvigorating’ the Commonwealth partnership with a host of trade deals after
Brexit. Photograph: Hagen Hopkins/Getty Images
‘reinvigorating’ the Commonwealth partnership with a host of trade deals after
Brexit. Photograph: Hagen Hopkins/Getty Images
The EU has leapt ahead of
the UK in the pursuit of free trade deals with Australia and New Zealand after
member states gave the green light for talks to start within weeks.
the UK in the pursuit of free trade deals with Australia and New Zealand after
member states gave the green light for talks to start within weeks.
With Theresa May
insistent that leaving the EU will involve exiting the customs union and
the bloc’s external commercial policy, the announcement from Brussels opens up
the possibility that the EU could enjoy better terms with the two Commonwealth
nations after Brexit than the UK will.
insistent that leaving the EU will involve exiting the customs union and
the bloc’s external commercial policy, the announcement from Brussels opens up
the possibility that the EU could enjoy better terms with the two Commonwealth
nations after Brexit than the UK will.
New Zealand’s trade
minister, David Parker, said the UK’s withdrawal did not diminish the huge
potential gains for his country that would come from breaking down trade
barriers with the remaining 27 member states.
minister, David Parker, said the UK’s withdrawal did not diminish the huge
potential gains for his country that would come from breaking down trade
barriers with the remaining 27 member states.
He said: “The EU is our
third-largest trading partner, with two-way trade worth more than $20bn
[£10.3bn]. Even excluding the UK, our trade with the EU is worth about $16bn
annually.”
third-largest trading partner, with two-way trade worth more than $20bn
[£10.3bn]. Even excluding the UK, our trade with the EU is worth about $16bn
annually.”
The international trade
secretary, Liam Fox, had recently spoken of “reinvigorating” the Commonwealth
partnership with a host of trade deals after Brexit, labelled “empire 2.0” by
sceptical Whitehall officials.
secretary, Liam Fox, had recently spoken of “reinvigorating” the Commonwealth
partnership with a host of trade deals after Brexit, labelled “empire 2.0” by
sceptical Whitehall officials.
But the UK will not be
able to start its negotiations over future trade with New Zealand and Australia
until 30 March 2019. The European commission president, Jean-Claude Juncker,
has vowed to complete the EU’s talks with the two countries by 31 October of
that year, when his time in office expires.
able to start its negotiations over future trade with New Zealand and Australia
until 30 March 2019. The European commission president, Jean-Claude Juncker,
has vowed to complete the EU’s talks with the two countries by 31 October of
that year, when his time in office expires.
Brussels is eyeing up
export opportunities for motor equipment, machinery, chemicals, processed foods
and services. In recent months, the EU has struck deals with Canada, Japan,
Singapore, Vietnam and Mexico.
export opportunities for motor equipment, machinery, chemicals, processed foods
and services. In recent months, the EU has struck deals with Canada, Japan,
Singapore, Vietnam and Mexico.
Last week May privately
proposed to Ireland and to Donald Tusk, the European council president, her
government’s concept of a “backstop” to avoid a hard border on the island of
Ireland, which would involve the UK temporarily staying in the customs union
beyond the transition period.
proposed to Ireland and to Donald Tusk, the European council president, her
government’s concept of a “backstop” to avoid a hard border on the island of
Ireland, which would involve the UK temporarily staying in the customs union
beyond the transition period.
It would come into force
should a satisfactory free trade deal or bespoke technological solution fail to
emerge that can solve the border problem. Formal negotiations in Brussels
restarted on Tuesday and are scheduled to last until Thursday.
should a satisfactory free trade deal or bespoke technological solution fail to
emerge that can solve the border problem. Formal negotiations in Brussels
restarted on Tuesday and are scheduled to last until Thursday.
However, in a sign that
the Brexiters in the cabinet are no closer to accepting the idea of staying in
a customs union, the environment secretary, Michael Gove, was insistent on
Tuesday morning that it could only be a temporary solution.
the Brexiters in the cabinet are no closer to accepting the idea of staying in
a customs union, the environment secretary, Michael Gove, was insistent on
Tuesday morning that it could only be a temporary solution.
He told BBC Radio 4’s
Today programme: “It means what it says on the tin. That temporary means not
permanent. It means for a short period of time.
Today programme: “It means what it says on the tin. That temporary means not
permanent. It means for a short period of time.
“I’m not going to
pre-empt the eventual position that we take after we have negotiated with the
European Union and with Ireland … In the same way as when you move
house, a bridging loan is meant to be temporary, but whether that’s weeks or
months, we don’t know precisely.”
pre-empt the eventual position that we take after we have negotiated with the
European Union and with Ireland … In the same way as when you move
house, a bridging loan is meant to be temporary, but whether that’s weeks or
months, we don’t know precisely.”
The EU has made it clear
before its negotiations with Australia and New Zealand that the size of its
market offers bountiful opportunities, without the need for the bloc to expose
its agricultural sector to cheap imports.
before its negotiations with Australia and New Zealand that the size of its
market offers bountiful opportunities, without the need for the bloc to expose
its agricultural sector to cheap imports.
The mandate given to the
commission for the talks, due to be formally launched in Wellington and
Canberra next month, envisages special treatment for agricultural goods in
order to protect European producers.
commission for the talks, due to be formally launched in Wellington and
Canberra next month, envisages special treatment for agricultural goods in
order to protect European producers.
In contrast, there are
some voices in the Brexiter wing of the Conservative party who would like to
radically liberalise the farming sector in the UK, and open it up to challenge
from highly efficient antipodean agricultural exporters.
some voices in the Brexiter wing of the Conservative party who would like to
radically liberalise the farming sector in the UK, and open it up to challenge
from highly efficient antipodean agricultural exporters.
Responding after EU
foreign ministers announced the talks, Cecilia Malmström, the European
commissioner for trade, said: “Together, we will now negotiate win-win trade
deals that create new opportunities for our businesses, as well as safeguard
high standards in key areas such as sustainable development.
foreign ministers announced the talks, Cecilia Malmström, the European
commissioner for trade, said: “Together, we will now negotiate win-win trade
deals that create new opportunities for our businesses, as well as safeguard
high standards in key areas such as sustainable development.
“Starting these talks
between likeminded partners sends a strong signal at a time where many are
taking the easy road of protectionism.”
between likeminded partners sends a strong signal at a time where many are
taking the easy road of protectionism.”
