Anatomy of modern Free Trade Agreements

Author: Flippo Fontanelli

PDF Published: Friday 26 Jul 2019 (SB 19-50)

Expand
Overview
Report

Hide

Hide

Overview
Report
- About the Author
- Executive Summary
- Introduction
- UK's external trade policy after Brexit
- What are Free Trade Agreements and what is their function?
- Types of FTAs
  - Reciprocal and non-reciprocal
  - Standard FTAs and deep integration FTAs
  - Bilateral and plurilateral FTAs
- The content of deep FTAs: WTO-plus and WTO-extra sections
- What kind of Free Trade Agreements for which kind of Brexit
  - No-deal
  - Customs Union
  - EEA membership
  - Canada model
- Anatomy of two deep FTAs: CETA and EU-Japan EPA
  - Trade in goods
    
    Custom Duties and Trade Facilitation
    
    Agriculture
    
    Rules of Origin
    
    Technical Barriers to Trade (TBT)
    
    Sanitary and Phytosanitary measures (SPS)
  - Trade in Services
  - Provisions on foreign investments
  - Government procurement
  - Intellectual property rights
  - Sustainable development, environment and labour rights
- Conclusion
- Appendix A: Glossary of Brexit-related trade jargon
  - Canada model
  - Concessions
  - Customs union
  - European Economic Area (EEA)
  - Four freedoms
  - Free trade agreements (FTAs)
  - Most-favoured nation
  - Mutual recognition
  - Norway model
  - Public procurement
  - Rules of origin (RoO)
  - Sanitary and Phytosanitary (SPS) and technical measures
  - Single market (or internal market)
  - Trade remedies (anti-dumping and anti-subsidy)
  - Transition period (a.k.a. implementation phase)
  - World Trade Organization (WTO)
Sources

Image: CPTPP geographical coverage

Image: Custom Duties and Trade Facilitation

UK Government. (2019, May 15). Signed UK trade agreements transitioned from the EU. Retrieved from https://www.gov.uk/guidance/signed-uk-trade-agreements-transitioned-from-the-eu [accessed 30 May 2019]

Tariff item 2402.10.00 in the Canada’s Schedule of Customs Tariff, compare the MFN rate with the Preferential tariffs. (2018). Retrieved from https://www.cbsa-asfc.gc.ca/trade-commerce/tariff-tarif/2018/01-99/ch24-2018-3-eng.pdf [accessed 5 May 2019]

Tariff item 040900 in the EU’s classification. (2019). Retrieved from https://ec.europa.eu/taxation_customs/business/calculation-customs-duties/what-is-common-customs-tariff/taric_en [accessed 5 May 2019]

BBC News, Honda set to close Swindon car plant. (2019, February 18). Retrieved from https://www.bbc.co.uk/news/business-47282603 [accessed 5 May 2019]

European Commission. (2019). Standard General System of Preferences. Retrieved from http://trade.ec.europa.eu/tradehelp/standard-gsp [accessed 5 May 2019]

European Commission. (2019). GSP+. Retrieved from http://trade.ec.europa.eu/tradehelp/gsp [accessed 5 May 2019]

European Commission. (2019). Everything But Arms scheme. Retrieved from http://trade.ec.europa.eu/tradehelp/everything-arms [accessed 5 May 2019]

European Commission. (2014, December). CETA - Summary of the final negotiating results. Retrieved from https://trade.ec.europa.eu/doclib/docs/2014/december/tradoc_152982.pdf [accessed 5 May 2019]

European Commission's Directorate-General for Trade. (2018, July). The Economic Impact of the EU - Japan Economic Partnership Agreement (EPA). Retrieved from http://trade.ec.europa.eu/doclib/docs/2018/july/tradoc_157115.pdf [accessed 5 May 2019]

Wall Street Journal. (2018, December 12). Europe and Japan’s Cheese-for-Cars Trade Deal to Launch Next Year. Retrieved from https://www.wsj.com/articles/europe-japan-trade-deal-will-launch-with-600-million-customers-11544628284 [accessed 5 May 2019]

European Commission. (2017, July). Briefing on the EU-Japan Agreement. Retrieved from http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155724.pdf [accessed 5 May 2019]

European Commission. (2017, July). An introduction to the EU-Japan Economic Partnership Agreement: Agriculture. Retrieved from http://trade.ec.europa.eu/doclib/docs/2017/july/tradoc_155715.pdf [accessed 30 May 2019]

European Commission. (2018, July). Economic Impact of the EU-Japan Economic Partnership Agreement. Retrieved from http://trade.ec.europa.eu/doclib/docs/2018/july/tradoc_157115.pdf [accessed 30 May 2019]

World Health Organization/Food and Agriculture Organization of the United Nations. (2007). Food Labeling. Retrieved from http://www.fao.org/3/a1390e/a1390e00.htm [accessed 5 May 2019]

European Medicines Agency. (2018, July 18). EU and Japan reinforce their collaboration on inspections of medicine manufacturers. Retrieved from https://www.ema.europa.eu/en/news/eu-japan-reinforce-their-collaboration-inspections-medicine-manufacturers [accessed 5 May 2019]

UNECE. (2019). World Forum for the harmonization of vehicle regulations (WP29). Retrieved from https://www.unece.org/trans/main/welcwp29.html [accessed 5 May 2019]

US-Korea FTA, Chapter 11 on Investments. (2012). Retrieved from https://ustr.gov/sites/default/files/uploads/agreements/fta/korus/Chapter_Eleven_Investment.pdf [accessed 5 May 2019]

UK Parliament, Department for International Trade. (2018, May 17). Impact assessment of the Comprehensive Economic and Trade Agreement (CETA) between the European Union and Canada. Retrieved from https://www.legislation.gov.uk/ukia/2018/82/pdfs/ukia_20180082_en.pdf

SPIcE Briefing. (2018, August 23). Geographical Indications and Brexit. Retrieved from https://bprcdn.parliament.scot/published/2018/8/23/Geographical-Indications-and-Brexit/SB18-51.pdf [accessed 30 May 2019]

UK Government. (2019, February 28). Processes for making free trade agreements once the UK has left the EU. Retrieved from https://www.gov.uk/government/publications/processes-for-making-free-trade-agreements-once-the-uk-has-left-the-eu [accessed 30 May 2019]

Financial Times. (2018, September 23). Hunt refuses to rule out Canada-style Brexit deal. Retrieved from https://www.ft.com/content/52e0a37a-be47-11e8-8721-19cd3d783657

BBC News. (2018, October 16). Brexit: 'No optimism' for summit breakthrough, says Donald Tusk. Retrieved from https://www.bbc.co.uk/news/uk-politics-45871254

The Guardian. (2019, February 9). Japan seeking big concessions from Britain in trade talks. Retrieved from https://www.theguardian.com/politics/2019/feb/08/japan-seeking-big-concessions-from-britain-in-trade-talks-eu-brexit

Politico. (2018, February 2). EU trade partners demand concessions for Brexit transition rollover. Retrieved from https://www.politico.eu/article/eu-trade-partners-object-to-brexit-transition-roll-over/

BBC News. (2018, April 23). Brexit: Government insists UK will leave customs union. Retrieved from https://www.bbc.co.uk/news/uk-politics-43860453

BBC News. (2018, October 11). Cabinet unease over open-ended customs union. Retrieved from https://www.bbc.com/news/uk-politics-45831665

Independent. (2018, May 14). Brexit: Norway drops objection to Britain staying in single market via European Economic Area. Retrieved from https://www.independent.co.uk/news/uk/politics/brexit-britain-join-european-economic-area-single-market-norway-eea-a8350681.html

Financial Times. (2018, August 2). EEA could be port in Brexit storm. Retrieved from https://www.ft.com/content/492991c4-9634-11e8-b747-fb1e803ee64e

The Guardian. (2018, August 22). Call for two years further freedom of movement after Brexit. Retrieved from https://www.theguardian.com/politics/2018/aug/22/call-for-two-years-further-freedom-of-movement-after-brexit

Independent. (2018, April 28). Brexit: Britain set to offer EU immigration deal 'very similar' to free movement. Retrieved from https://www.independent.co.uk/news/uk/politics/brexit-deal-talks-latest-eu-immigration-free-movement-offer-a8326101.html

Independent. (2018, September 26). Jeremy Corbyn to meet with EU chief Brexit negotiator 24 hours after pledging to take charge in talks. Retrieved from https://www.independent.co.uk/news/uk/politics/brexit-latest-jeremy-corbyn-labour-conference-michel-barnier-meet-jo-cox-a8556336.html

BBC News. (2018, September 17). Reality Check: How are Brexit preparations getting on?. Retrieved from https://www.bbc.com/news/uk-politics-45522747

The Guardian. (2018, September 18). Rightwing thinktanks unveil radical plan for US-UK Brexit trade deal. Retrieved from https://www.theguardian.com/politics/2018/sep/18/rightwing-thinktanks-unveil-radical-plan-for-us-uk-brexit-trade-deal-nhs

Independent. (2018, October 12). No-deal Brexit would wipe out deals that deliver 12% of the UK’s total trade, government admits. Retrieved from https://www.independent.co.uk/news/uk/politics/brexit-latest-no-deal-trade-lost-12-per-cent-government-gdp-eu-a8580926.html

Telegraph. (2017, February 24). What will Brexit mean for British trade?. Retrieved from https://www.telegraph.co.uk/news/0/what-would-brexit-mean-for-british-trade/

Economist. (2017, September 1). Why the “WTO option” for Brexit will prove tricky. Retrieved from https://www.economist.com/the-economist-explains/2017/01/09/why-the-wto-option-for-brexit-will-prove-tricky

BBC News. (2018, October 11). Brexit: No deal brings risk of stockpiling says watchdog. Retrieved from https://www.bbc.com/news/business-45823857

Financial Times. (2017, January 12). Financial future after Brexit: passporting v equivalence. Retrieved from https://www.ft.com/content/61221dd4-d8c4-11e6-944b-e7eb37a6aa8e

Independent. (2018, September 21). After Salzburg, Theresa May's Brexit plans are in shreds – a Norway or Canada model is a long shot, but her only option. Retrieved from https://www.independent.co.uk/voices/theresa-may-salzburg-brexit-norway-canada-model-michel-barnier-a8548456.html

Independent. (2018, October 15). Brexit: Nicola Sturgeon calls on PM for Norway-style deal as 'democratic compromise'. Retrieved from https://www.independent.co.uk/news/uk/politics/brexit-nicola-sturgeon-single-market-customs-union-norway-theresa-may-compromise-a8584546.html

Financial Times. (2019, May 5). Labour casts doubt on Brexit deal as talks reach final stages. Retrieved from https://www.ft.com/content/6c800cb8-6f17-11e9-bbfb-5c68069fbd15

Reuters. (2019, February 27). WTO agrees terms to keep Britain in procurement deal post-Brexit. Retrieved from https://uk.reuters.com/article/uk-britain-eu-wto/wto-agrees-terms-to-keep-britain-in-procurement-deal-post-brexit-idUKKCN1QG1E5

The Guardian. (2018, September 15). Food and Brexit: will our cupboards be bare?. Retrieved from https://www.theguardian.com/food/2018/sep/15/food-and-brexit-will-the-cupboard-be-bare-jay-rayner

The Guardian. (2018, September 28). 'Brexit fatigue' leaves British businesses unprepared for no deal. Retrieved from https://www.theguardian.com/politics/2018/sep/28/brexit-fatigue-leaves-british-businesses-unprepared-for-no-deal

Irish Times. (2019, April 10). UK to maintain SPS regulatory alignment with EU for nine months in no deal. Retrieved from https://www.irishtimes.com/news/ireland/irish-news/uk-to-maintain-sps-regulatory-alignment-with-eu-for-nine-months-in-no-deal-1.3856219

BBC News. (2019, March 1). UK says food standards will not be lowered for US trade deal. Retrieved from https://www.bbc.co.uk/news/uk-politics-47418505

The Guardian. (2019, February 18). Maintain EU electrical safety standards after Brexit, ministers urged. Retrieved from https://www.theguardian.com/money/2019/feb/18/electrical-goods-eu-safety-standards-consumer-legislation-brexit

The Times. (2018, October 2). Theresa May’s Brexit plan is economic vandalism, warns Nicola Sturgeon. Retrieved from https://www.thetimes.co.uk/article/theresa-may-s-brexit-plan-is-economic-vandalism-warns-nicola-sturgeon-vfsptm2qb

Financial Times. (2018, October 9). Brexit explainer: what’s at stake for EU single market and customs union. Retrieved from https://www.ft.com/content/1688d0e4-15ef-11e6-b197-a4af20d5575e

Financial Times. (2019, February 7). Lack of trade defences for no-deal Brexit alarms MPs. Retrieved from https://www.ft.com/content/4bf6ebf6-2b01-11e9-a5ab-ff8ef2b976c7

BBC News. (2019, February 25). UK to keep trade penalties post-Brexit. Retrieved from https://www.bbc.co.uk/news/business-47361334

The Guardian. (2018, October 15). Nicola Sturgeon calls for extension of Brexit transition period. Retrieved from https://www.theguardian.com/politics/2018/oct/15/nicola-sturgeon-calls-for-extension-of-brexit-transition-period

Telegraph. (2018, October 12). Brexit transition period could be extended by another year, costing UK billions in extra payments to EU. Retrieved from https://www.telegraph.co.uk/politics/2018/10/12/brexit-transition-period-could-extended-another-year-costing/

BBC News. (2019, March 25). Brexit: What is the 'no deal' WTO option?. Retrieved from https://www.bbc.com/news/uk-45112872

Independent. (2018, August 24). No-deal Brexit: 'Not realistic' for UK to start trading under WTO rules in March, says WTO boss. Retrieved from https://www.independent.co.uk/news/business/news/no-deal-brexit-uk-trading-wto-under-wto-rules-not-realistic-roberto-azevedo-a8505946.html

Last Updated: 9/8 11:34am

Image: CPTPP geographical coverage

Image: Custom Duties and Trade Facilitation

An error occured while loading, please try again in a few minutes.