The deadline for trade negotiations between Britain and Europe is approaching Johnson claimed to be prepared for no agreement

2020-12-13 13:40| Publisher: 2233| see: 827| comment: 0

abstract: The transition period for Brexit has entered the last three weeks, but the EU and the UK have yet to reach an agreement on the most crucial Anglo European trade agreement. Previously, both the UK and Europe had already12month13The deadline for reaching an agreement is set at. But on the eve of the negotiations, British Prime Minister Johnson(Boris Johnson)12month10Day once again ...

The deadline for trade negotiations between Britain and Europe is approaching Johnson claimed to be prepared for no agreement672 / author: / source:

      The transition period for Brexit has entered the last three weeks, but the EU and the UK have yet to reach an agreement on the most crucial Anglo European trade agreement. Previously, both the UK and Europe had already12month13The deadline for reaching an agreement is set at. But on the eve of the negotiations, British Prime Minister Johnson(Boris Johnson)12month10Japan has once again shown pressure, warning that the UK and the EU are "highly likely" to be unable to reach a new trade agreement, and urging the UK to prepare for a "non agreement Brexit" at the trade level.

In the2020year1month31After the official launch of the Brexit program on the Japanese, the UK entered a period of11A transitional period of six months. During this period, trade, travel, and business rules between the UK and the EU will remain unchanged until12month31The transition period from Brexit to Japan has ended.

At that time, if the UK and Europe have not yet reached an agreement on key trade issues, the annual1The trillions of dollars in bilateral trade and related enterprises will be affected by the uncertainty of tariffs and quotas. Therefore, for the UK after Brexit, it is urgent to establish new trade norms with its largest trading partner, the EU.

However, after months of difficult negotiations, the EU and the UK remain deadlocked on controversial issues such as fishing rights, fair competition, and dispute resolution mechanisms.

Previously12month9On October 1, President of the European Commission von der Leyen and British Prime Minister Johnson have agreed to12month13Japan is set as the deadline for reaching a trade agreement between Britain and Europe.

But with only three days left before the deadline for this negotiation12month10On the same day, Johnson once again expressed a strong stance after meeting with cabinet ministers, stating that the UK cannot accept the current version of the Anglo European trade agreement: "We need to clarify that there is a high possibility that our solution may be more like Australia's relationship with the EU (i.e. trade relations without a comprehensive agreement), rather than Canada's relationship with the EU

In the early stages of the Anglo European trade negotiations, the Johnson administration hoped to sign agreements with the European Union similar to those between the European Union and Canada2016The Free Trade Agreement signed inCETAHigh degree of freedom trade agreement.

In theCETAIn China, Canada only needs to comply with some of the EU's standards for agricultural imports, at the cost that Canadian exports will be subject to certain tariffs and quotas. In addition, both the European Union and Canada have retained independent regulatory authority in areas of public interest such as environmental protection and health and safety,CETACanada has not been required to implement the EU's national subsidy regulations. More controversially,CETAEnterprises are allowed to sue the government for policies affecting their profits, but opposition within the EU believes that this mechanism hinders the introduction of new regulations in the field of environment and health, harming the interests of EU consumers and small farmers.

However, the current trade requirements put forward by the European Union towards the UK are relatively low in all aspects mentioned aboveCETABoth are more stringent. Johnson is in2If the EU refuses to sign a similar agreement with the UKCETAThe agreement, then the UK will instead seek trade relations similar to those between the EU and Australia - currently there is no comprehensive trade agreement between Australia and the EU, and most of the trade between the two sides is conducted according to World Trade Organization rules. But if we follow this' no agreement 'approach, it will make most of the trade between Britain and Europe subject to tariffs.

At Johnson12month10After the Japanese once again stated that the UK was ready to "leave the EU without an agreement" in trade, the pound fell nearly on the same day against the US dollar0.9%。

Von der Leyen, the president of the European Commission, said earlier that it was "difficult" to bridge the persistent differences in the UK EU trade negotiations: "We are willing to allow (Britain) to enter the European single market, but the conditions must be fair. So far, this delicate balance with fairness has not been achieved."

The EU hopes to include the so-called "ratchet clause" in the Anglo European trade agreement(ratchet clause)”Ensure that any future improvements to UK and EU standards are matched while the UK enjoys its market access.

But as one of the advocates for Brexit, Johnson particularly cannot accept clauses that may affect British sovereignty. He opposes bundling future labor, social, and environmental standards, as well as national aid rules, between the UK and the EU.

For the EU, not accepting the "ratchet clause" violates the EU's principle of fair competition.

German Chancellor Merkel12month9During a speech in the German Bundestag, it was described that there is still a possibility of a trade agreement between Britain and Europe, but the biggest issue is the so-called "ratchet clause". She pointed out that the European Union is striving to use the "ratchet clause" to commit the UK to simultaneously raising labor, social, and environmental standards, as well as national subsidy rules.

Merkel also stated that Europe will not sacrifice ownership4.5The integrity of the European single market with billions of consumers to adapt to the UK: "We must have a fair competitive environment, not only for today, but also for tomorrow and the future. Otherwise, there will be unfair competition conditions, and we cannot let our company be subject to these conditions

Belgian Prime Minister De Kroc(Alexander de Croo)The principle of fair competition is also emphasized, saying: "Leaving without an agreement is not a good thing, but a bad agreement will be even worse. Giving (the UK) the opportunity to enter the EU common market should be in a fair competition environment

Apart from the "ratchet clause" related to fair competition, one of the biggest controversies between the UK and Europe is the issue of fisheries.

For many EU member states, including France, where fisheries are the main industry, fisheries are a politically sensitive topic. These countries do not want price dumping caused by lowering production standards and are very concerned about how to resolve future trade disputes in the fishing industry. According to Johnson, what he cannot tolerate the most is the EU's demand for Britain to relinquish sovereignty over its fishing waters.

In the12month9Johnson and von der Leyen had a "frank" and "lively" discussion on the Brexit issue at a dinner party on July, but they failed to overcome the persistent differences between the two sides, so they agreed this Sunday(12month13Japan is the deadline for reaching a trade agreement.

Von der Leyen described at that time that the positions between Britain and Europe were still "far apart". British insiders also described that there is still a "huge gap that is unclear whether it can be bridged" between the two sides.

  12month10On the same day, the European Union also proposed an emergency plan for "non agreement Brexit", which will provide basic services including six months of aviation services, road freight, and other basic services between the UK and Europe, provided that the UK provides equivalent conditions.

Although a spokesperson for the UK government subsequently stated that it would study the emergency proposal proposed by the EU, the UK government quickly rejected the EU's request for the UK to retain equivalent one-year access to fishing waters.

However, while reminding the British public and businesses to prepare for the prospect of a "no agreement Brexit", Johnson also promised to spare no effort in reaching an agreement: "I will go to Brussels, Paris, Berlin or anywhere to try to solve this problem and reach an agreement

As the deadline for formal Brexit in the UK approaches, but trade negotiations between the UK and Europe remain deadlocked, the EU is implementing a total of1.82Significant progress has been made in the trillion euro COVID-19 recovery plan, which has avoided a "double crisis" situation. Previously, the plan had been put on hold since its launch due to opposition from Poland and Hungary.

To alleviate the impact of the epidemic on the European economy, the European Union7The largest economic stimulus package in history was launched in June. Among them, the EU will provide collective loans to EU countries hit by the COVID-19 epidemic7500Billion euros of recovery funds(recovery fund); This plan will also include the European Union2021-2027year7Fiscal budget framework for the year(Multiannual Financial Framework)The total amount is1.074Trillion euros. The total amount of the EU's COVID-19 recovery plan will reach1.82Trillion euros.

The budget bill aims to help European countries achieve digital and green economic transformation in the post pandemic economic recovery. However, one of its provisions stipulates that member states are required to "respect the rule of law" for funding(rule-of law)”To maintain the independence of its judiciary.

Hungary and Poland, which have frequently been accused of regressing in terms of press freedom and judicial independence in recent years, believe that the above provisions are highly targeted and criticize the mechanism of linking aid funds to rule of law requirements as "blackmail".

Although Hungary and Poland were unable to block the relevant provisions, they both exercised veto power in subsequent budget draft votes, resulting in delayed implementation of the EU budget and recovery plan.

However, currently, Merkel has represented this year's rotating presidency of the European Union, Germany, to persuade Hungary and Poland to abandon their resistance to the budget bill. It is reported that European leaders will soon issue a statement to ensure that the link between the budget bill and the rule of law principles will be objectively applied - that is, the provision is only set to ensure the legitimate use of EU funds, rather than punishing countries based on EU rule of law investigations.

Currently, the total value of this EU investment exceeds1.8The trillions of euros budget bill still needs approval from the parliaments of member countries, including Hungary and Poland, for it to take effect. In addition, if Hungary and Poland want to delay the practical application of the rule of law provisions, they can also request the EU Supreme Court to check whether the new regulations comply with EU treaties. At that time, the EU must issue guidelines for the application of the law, which may take two and a half years.
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