EU plans antipodean trade talks

The EU could be set to pip the UK at the post in a race to sign new trade deals with Australia and New Zealand.

The UK government has made it clear that signing trade deals with Commonwealth countries will be prioritised in the wake of Brexit – a move termed “Empire 2.0” by sceptics.

However, the news that EU president Jean-claude Juncker wants to begin fast-track talks on securing a deal with these nations later this year would put the trading block ahead on the negotiating front. As the UK cannot begin its own negotiations until March 2019, talks between the antipodean countries and the EU could be well advanced before the UK enters the race – giving Europe a better chance of reaching an agreement first and enjoying a better deal.

The EU hopes that a new deal could open up new export opportunities for machinery, motor equipment, chemicals and services.

But while Australia said it would be pushing for greater access to agricultural markets, EU sources said that it wanted to retain special treatment for agricultural goods in order to protect European farmers and their produce.

However, while the UK is likely to have left the EU by the time any new deals have been hammered out and brought into effect, the possibility of an indefinite extension of Britain’s ties to EU customs arrangements beyond 2020 leaves open the possibility that the new terms of trade for Australia and New Zealand may yet apply to the UK when they come into force.