UK urged to push harder for trade deals beyond EU
Move to phase two of Brexit talks is moment for Britain to set out its plans to rest of world, say experts
THE Government must show it is serious on global trade by setting out its goals for trade deals with countries outside the European Union as soon as possible, a group of leading trade experts has urged.
This will show that the UK is not going to be forced into accepting the EU’S diktats on regulations, and prove to non-eu countries that they should treat the UK well at the World Trade Organisation in return for future trade deals.
Former trade negotiators from the US, Canada and New Zealand, working on the Legatum Institute’s Special Trade Commission, said the move to phase two of the Brexit talks was a key chance for Britain to set out its future plans to engage with the whole world.
“It signals to their trading partners that they are serious about this, that [the UK Government] lays out a series of strategic negotiating objectives that apply both to what they do with the EU and every other trading partner,” said Grant Aldonas, a trade specialist and former economic adviser to George W Bush. “It is … a signal to the folks on the European Commission that you are moving ahead.”
The Legatum Institute’s Shanker Singham said: “It is even more urgent to initiate those conversations with other countries. The worst thing the UK could do is to say, we are going to deal with the EU first and then other people, because that would guarantee a bad result with the EU.”
Key to achieving this is making sure the UK and EU agree to recognise each others’ regulatory regimes instead of insisting the UK aligns its rule book with that of Brussels.
Sir John Lockwood, former New Zealand High Commissioner to the UK and ex-trade minister, said he had found regulatory alignment to be “a waste of time” when negotiating a trade deal with Australia because it is more straightforward and flexible simply to recognise each others’ systems as acceptable. The UK has a chance to achieve some of that this weekend as Liam Fox, the International Trade Secretary, attends the WTO’S annual conference in Argentina. He has pledged to “be one of the world’s strongest advocates for further trade liberalisation and modernisation”.
Business leaders hailed the breakthrough in Brexit talks, but optimism boosting the pound to its highest level in over a year on currency markets quickly faded. The business community unanimously praised the deal but called for greater clarity on Britain’s future relationship with the EU.
Josh Hardie, at the CBI, said the announcement of a deal on Britain’s divorce bill, the Irish border and citizens’ rights “will lift spirits in the runup to Christmas”.
Chris Cummins, of the Investment Association, said companies could now set aside their contingency plans for a no-deal scenario and “focus their attention on planning for a more positive outcome and looking after their savers and investors across the UK and EU”.
Brexit-bruised sterling initially surged on a relief rally, jumping to its highest level against a basket of currencies since September 2016, and climbing above €1.15 against the euro for the first time in six months.
But the pound soon ran out of steam and slipped back to €1.14, up 0.02c on the day.
Sterling’s reversal was the “dawning realisation that Brexit will not be solved overnight” and trade talks will be the “tough part of the negotiations now”, said ING strategist Viraj Patel.