EU Deals with other countries
EU-Japan. While we are doing a deal with the EU and others, the EU has just done a deal with Japan that will cover 600m people and around 30% of global GDP. Dubbed 'cars-for-cheese' deal the EU slashes import taxes on cars, while Japan reduces tariffs on dairy products, wine and meat. After 4 years and 18 rounds of negotiation, It will come into final effect, at the same time as we Brexit - March 2019.
JEFTA is an exclusive trade deal between EU and big business, Who had access to the EU negotiators? Ans 89% Corporate lobby groups, 4% public interest. Signed July, EU saying their businesses will save nearly £1bn in taxes.
CanadaThis is the deal we are most likely to end up looking like - we hear people talking about being Canada +++. The big issue is that coming out of the Customs Union, we still have choice of keeping our food and farm tariffs - to protect those industries. Yet Canada ++ implies doing away with those tariffs - and often hear those wanting to remove our food tariffs supporting the Canada deal.
Canada deal (also known as CETA) reduces virtually all tariffs - including those 15,000 tariffs on Processed Agricultural Products (PAPs), that we would call 'food'. They include tariffs on biscuits, pies, dairy products, sugar, chocolate and cereal-based products. These taxes all help protect our food industries. Clearly both Canada and the EU see that the times they are a changin' in that protecting our food industries is fine, but if we want to export that food, these taxes are in the way. It means that if the UK is outside that deal it will face greater problems when trying to export its food. Our food will not be exempt, and we will find it harder to export into Canada and the EU as it will face many PAP tariffs. It is unclear whether Britain would be part of that deal, post Brexit - as it all depends on the timing of ratification of the deal and our Brexit.
The deal also includes a controversial investor-state dispute settlement mechanism which opens the way to multinational corporations suing national governments for billions of dollars if they thought that the government policies had a bad impact on their business. A deal like this was favoured by the ex Brexit Secretary David Davis who wanted a Canada+++ deal.
Just the process for calculating rules of origin takes up about 150 pages of the Canada deal, with specific rules covering products from barbeque sauce to soap
South America (Mercosur deal)
Mercosur leading to more burning of Amazon "Amazonia is burning: corporate arsonists are making room for vast industrial soy farms and cattle feedlots. A free trade agreement with the Mercosur states would flood the European market with cheap beef and incentivize further environmental crimes.
EU-Mercosur ('Southern Common Market' - most of S.America). Irish Farm President says EU Commisioner cannot agree bad deal for EU farmers, calling on her to "reject the environmental destruction, failures on food safety and animal welfare, and slave labour associated with Brazilian beef". "Concerns over beef, ethanol, sugar and poultry were mentioned in letter to EU, which cautioned against the quotas on the table (beef 70,000 tonnes - down from 100,000, ethanol 600,000t) and signed by Austria, Belgium, France, Hungary, Ireland, Lithuania, Luxembourg, Romania, Poland, Slovakia, and Slovenia. The European Commissioner for Trade Celia Malmstrom is pressing for a deal - that has been ongoing for nearly 20 years. Mercosur want capacity to export more beef in particular in return for reducing taxes on imports from EU - like machinery, pharmaceuticals, and electronics.
This is an example of exactly the sort of trade deals we are going to have to make in the future.
Irish Farmers Union says (July 18) “In view of the lack of progress on Brexit and our critical dependence on the UK market for beef exports, the EU cannot agree to increased beef imports from Mercosur."
See Doing Deals for impact on UK