Brexit news: EU left at the mercy of global trade demands as UK signs new deals | Politics | News
In a December report on the assessment of Article 50, the European Parliament’s Constitutional Affairs Committee found that Brexit has proven to be a trade issue for the bloc.
Brussels, admitted the Committee of MEPs, has found itself faced with demands from third countries over the renegotiation of tariff quotas while Britain has left a hole in the budget calculations.
The report said: “[The Committee] notes that the withdrawal of a Member State has had unprecedented legal consequences on the EU’s international commitments, in particular as regards the need to renegotiate the tariff quotas agreed at the level of the World Trade Organization (WTO) to take account of the quota share used by the outgoing Member State, which thus allowed third countries to submit additional requests for market access;
“considers that with the withdrawal of the United Kingdom, the allocation of EU tariff quotas has, in principle, been well managed by first adopting an internal legislative act fixing the newly allocated EU quota shares[inparticularintheformofRegulation(EU)2019/21614)thenensuringthefollow-upofnegotiationswiththirdcountriesattheleveloftheWTOeveniftherearenolegalprovisionsatthisleveldealingwiththedisintegrationofacustomsunion”[notammentsouslaformedurèglement(UE)2019/21614)puisenassurantlesuividesnégociationsaveclespaystiersauniveaudel’OMCmêmes’iln’existepasàceniveaudedispositionsjuridiquestraitantdeladésintégrationd’uneuniondouanière”
The UK, on the other hand, has so far been able to strike new trade deals around the world, with Australia, New Zealand and Japan.
It is also in talks with India, one of the biggest trading nations in the world.
Britain and India formally launched free trade deal talks in New Delhi last month with the aim of striking a deal by the end of the year that could boost annual bilateral trade in billion pounds.
Britain has made a deal with India one of its post-Brexit priorities as, freed from the European Union’s common trade policy, ministers seek to steer trade policy towards growth economies faster in the Indo-Pacific region.
Meeting in New Delhi, Indian Trade Minister Piyush Goyal and his British counterpart Anne-Marie Trevelyan said they would also launch an “early harvest” or limited-scope interim trade deal in the coming months, before finalizing the free trade Agreement.
“This is an opportunity we must seize to steer our partnership on a path of mutual prosperity for decades to come,” Ms. Trevelyan said.
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“Nothing is necessarily a deal breaker in this deal,” Goyal said.
“And I don’t think there’s any way for anyone to worry about sensitive issues for a country, because both sides have agreed that sensitive issues are not our priority,” he said. added.
Ministers want to tap into the wealth of India’s middle classes and their appetite for high-end British goods like Scotch Whisky.
They also hope that India can become a big customer of its green technology industry and that the existing service sector trade routes can be strengthened.