Britain faces a binary choice between deep trade relations with the EU or the United States, according to a report from MPs on the International trade Committee (ITC).
Efforts to cast regulations in a bid to land a contract quick free trade (FTA) with the United States could lead to the erection of fresh barriers to trade between the UK and the EU, the report argues.
An in-depth examination 50 page UK-US trade relations have identified trade-offs for the UK in providing us FTA. Trying to build a closer relationship with the UK’s largest single-country trading partner can increase the size of the UK economy by 0.35 PC of GDP, but like all business it will require “compromise,” the report warns.
UK exports to USA worth £100 billion in 2016, compared to £234bn in the EU in 2016, making any such compromise difficult economic balancing act.
Said a number of experts, MPs was a “binary choice” to stay in line with EU standards, or Shift to secure trade deal with the United States, aligning with the UK model of regulation in the United States, according to the report.
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The Chairman of the Committee, Angus MacNeil MP said: “whether the criminal code to align its provisions with the United States, and the risk of the construction of impassable barriers to trade with our global partners, particularly the EU? If there is a clash between the regulatory regimes in the EU and the US, which the government plans to prioritize?
“These issues should be worked out, not only before the deal with the US, but before we will modify our future trade relations with the EU.”
However, Shiv Singh of the Institute for economic Affairs, said that it was possible to find a way forward that does not restrict Britain to a binary choice.
It was a question “find ways to recognize the regulatory inter-operatively with the European system while they are also able to interact with the rest of the world,” said Mr. Singh.
Before negotiations, the government must publish a strategy of trade policy, “which articulates his vision of how the UK will operate as an independent trading nation”, – noted in Committee.
Said a number of industries, including chemicals and technical deputies that they would prefer UK to keep in line with the EU standards in the future. Others, including some agricultural specialists stated that departs from EU rules may remove the “barrier to innovation”.
Geographical indications (GIS) are also a major stumbling block in the FTA with the US.
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GIS that protect and localize the intellectual property of certain products in certain places, such as Cornish pasties and Scotch, is often beyond the EU through free trade agreements with third countries.
It may refuse to trade with the United States, where instead operates on the basis of the brand, which offers the same level of legal protection, depending on location. The inability of GIS recognized by the United States could undermine the status of high-value British products, so.
In some sectors, the report emphasizes the tradeoff between consumer prices and mechanisms for the protection of the rights of consumers in the pursuit of trade agreements with the United States. Although some products, such as pork, may become cheaper for consumers in the UK, if you have imported more us beef, it would also be potentially of lower quality from the point of view of welfare.
Many American pigs are intensively grown using hormones, such as Ractopamine and many products are washed with chemicals.
GM products are sold without labeling in the United States. One trade expert, Dr Peter Holmes, says, going from EU rules in respect of standards of the United States may lead to “regulatory race to the bottom”.
Impact assessment should be done before you enter into any negotiations with the United States both from the point of view of the winners and losers in sectors, and also from the point of view of the overall impact on consumers.
From the point of view of services trade with the United States, a high level federalised, not nationalized, the regulation makes it a challenging market for trade agreements. Individual States also often have strict rules on procurement, making it much harder for non-us firms to participate in the auction.
Information, a serious problem for British firms rushing to comply with the General EU rules on data protection (GDPR), could also present a headache for the United States-United Kingdom trade negotiations. As soon as the UK leaves the EU, this will require so-called agreement on the adequacy of EU data. Otherwise, the data flows between the EU and the UK would have to stop.
This is also the concern about the future of the UK and US trade relations. Currently, data is allowed to move between the US and the EU, stipulated by the agreement on the shield of confidentiality. Any deal with great Britain would require a separate bilateral agreement.
The lessons from the failed negotiations on the Transatlantic trade and investment partnership (TTIP) should be ignored until new steps towards UK-US Internet, a report has warned.
The TTIP include disputes between investors and States (ISDS). This aspect of the transaction “killed TTIP” according to one expert Samuel Lowe.
In the ISDS often includes investor protections that are embedded in trade agreements, such as the canadian trade agreement with the EU. They allow each country to bring a case against another directly, through international law, not through one or other of the national courts.
The reason that the ISDS has been so controversial in the negotiations on TTIP, which can be legal disputes over public and private provision of nhs services.
The government must ensure the NHS “is not compromised UK-US FTA” – conclude the authors of the report. It should also ensure that the negotiations should not lead to any Provisions on intellectual property rights, which may hurt pharmaceutical purchasing model SPSS.