UK faces challenge to secure post-brexit trade deals as EU courts New Zealand

Eurofile: Europe has launched negotiations to secure an ‘ambitious and far-reaching’ free trade deal with New Zealand

The European Commission has formally launched negotiations to secure what it describes as an “ambitious and far-reaching” free trade deal with New Zealand.

This was launched in New Zealand, which gave assurances that its aim was not to undermine farming in the EU but to develop trading arrangements to benefit both.

It is the latest on a long list of trade targets for the EU, which recently secured deals with Mexico and Japan – and a trade deal with Canada is now operating.

During her visit to New Zealand, the EU trade commissioner, Cecilia Malmstrom, also went to Canberra to launch talks with the Australian Government on a similar free trade deal.

This adds to the challenge the UK faces, with just a market of 60 million consumers, to secure special treatment over others in securing post-brexit trade deals.

Direct payments will be cut in the 2019 CAP financial year, which begins in October.

The reduction will be in line with the 2018 cut at 1.4%.

The cut is imposed to ensure that sufficient funds are in the EU’S crisis reserve to tackle any market problems that may arise.

This fund is kept above n400 million, and cuts this year will put in n460 million.

The Commission can also impose cuts to balance the CAP budget, known as “financial discipline”.

However, it says that as the budget is in line with spending, that is unlikely for 2019.

The European Parliament’s rapporteur on unfair trading practices (UTPS) along the food supply chain has pressed for the rules to be extended and for a drive to have them agreed before the term of the present parliament ends in May 2019.

Paolo de Castro says the legislation should apply at all businesses, and he also wants it extended to cover all farm products.

MEPS say they recognise there is some legislation already in force within member states but new rules can only work if they are Eu-wide, and accompanied by powers to impose penalties related to the scale of the unfair treatment.

They insist this is about extending an existing voluntary initiative.

US President Donald Trump’s tearing up of the trade rule book has led to the EU imposing tariffs on a range of US food products.

China and Mexico are banning or imposing high tariffs on US exports, including grain, soya and pork.

This has the potential to create opportunities for other traders, including the EU.

The EU is negotiating a free trade deal with New Zealand which is a key player in international dairy and sheepmeat markets.