EU-UK trade talks go on remotely

EU-UK trade talks go on remotely
Construction work continues at the site of a lorry park being built between the villages of Sevington and Mersham, near the M20 motorway near Ashford in Kent, south east England on November 23, 2020, which will have the capacity to hold nearly 10,000 vehicles in the event of a no-deal Brexit. (AFP)
Short Url
Updated 24 November 2020

EU-UK trade talks go on remotely

EU-UK trade talks go on remotely
  • ‘The differences on the level playing field and fisheries remain major,’ sources say

BRUSSELS: British and EU negotiators on Monday resumed talks on their post-Brexit relationship via video-conferencing, with the focus still squarely on dividing up fishing quotas and ensuring fair competition for companies, including on state aid.

Face-to-face talks, suspended last week after a member of the EU delegation tested positive for the coronavirus, will resume in London “when it is safe to do so,” said a source who follows Brexit.

Another source, an EU official, added: “The differences on the level playing field and fisheries remain major.”

These issues are the key obstacles to clinching a new deal to maintain free, frictionless trade between the estranged allies after Britain’s standstill transition out of the EU following Brexit completes at the end of this year.

British newspaper The Sun reported at the weekend that the negotiators were looking at a review clause that would allow a renegotiation of any new fishing arrangement from 2021 in several years’ time.

An EU diplomat, a third source who spoke under condition of anonymity, confirmed that such an idea was under discussion, but added that the bloc insisted on linking it to the overall trade agreement, meaning fishing rights could only be renegotiated together with the rest of trade rules.

“We need to uphold the link between fishing and trade rules, this comes in a package,” said the person.

The EU official stressed that annual renegotiation of fishing quotas was still a no-go for the 27-nation bloc. Fisheries are a particularly sensitive issue for France.

Thierry Breton, the French representative on the European Commission, the EU executive, said last week: “We shouldn’t have in the Brexit deal revision clauses in one or two years, when everything would change again ... We won’t let that happen. We need to give our entrepreneurs predictability.” 


France wants end to US-Europe trade spat

France wants end to US-Europe trade spat
Updated 17 January 2021

France wants end to US-Europe trade spat

France wants end to US-Europe trade spat
  • All eyes on President-elect Biden to resolve disputes between partners

PARIS: The EU and the incoming administration of US President-elect Joe Biden should suspend a trade dispute to give themselves time to find common ground, France’s foreign minister said in remarks published on Sunday.

“The issue that’s poisoning everyone is that of the price escalation and taxes on steel, digital technology and Airbus,” Jean-Yves Le Drian told Le Journal du Dimanche in an interview.

He said he hoped the sides could find a way to settle the dispute. “It may take time, but in the meantime, we can always order a moratorium,” he added.

At the end of December the US moved to boost tariffs on French and German aircraft parts in the Boeing-Airbus subsidy dispute, but the bloc decided to hold off on retaliation for now.

The EU is planning to present a World Trade Organization (WTO) reform proposal in February and is willing to consider reforms to restrain the judicial authority of the WTO’s dispute-settlement body.

The US has for years complained that the WTO Appellate Body makes unjustified new trade rules in its decisions and has blocked the appointment of new judges to stop this, rendering the body inoperable.

The Trump administration, which leaves office on Wednesday, had threatened to impose tariffs on French cosmetics, handbags and other goods in retaliation for France’s digital services tax, which it said discriminated against US tech firms.

Overturning decades of free trade consensus was a central part of Trump’s “America First” agenda. In 2018, declaring that “trade wars are good, and easy to win,” he shocked allies by imposing tariffs on imported steel and aluminum from most of the world.

While Trump later dropped tariffs against Australia, Japan, Brazil and South Korea in return for concessions, he kept them in place against more than $7 billion worth of EU metal. The bloc retaliated with tariffs on more than $3 billion worth of US goods, from orange juice and blue jeans to Harley Davidson bikes, and took its case to the WTO.

While Biden promises to be more predictable than Trump, he is not expected to lift the steel tariffs immediately. Even if he wants to, he could run into reluctance from producers in “rust belt” states such as Michigan and Pennsylvania that secured his election win.

Hosuk Lee-Makiyama, director of trade think tank ECIPE, said the US was unlikely to award Europe a “free pass,” noting that countries that had offered concessions to have their tariffs lifted could complain if Europe won better treatment.

Resolving future trade disputes could become easier, if Biden reverses Trump policy that paralyzed the WTO by blocking the appointment of judges to its appellate body.