With little fanfare, the US splits its tariff quotas for UK and EU exports

Most the attention has been on splitting EU import quotas post-Brexit. This is the other side of the coin. Presumably the UK and EU are OK with it

By Peter Ungphakorn
POSTED JULY 5, 2021 | UPDATED JULY 5, 2021

On the eve of the July 4 holiday, the United States announced new tariff quotas for some dairy products and tobacco imported from Britain and the European Union, from 2022.

This is the other side of the coin for an issue that has received much more attention — how the tariff quotas for imports into the original EU28 are being split between the post-Brexit EU27 and the UK, the on-going discussion in the World Trade Organization (WTO), and the resolution with some of the objecting countries.

Presumably Britain and the EU have accepted these new conditions on their exports.

Continue reading “With little fanfare, the US splits its tariff quotas for UK and EU exports”

Fisheries subsidies chair floats new text 15 days before ministers meet

Ministers challenged to drive talks forward politically as an advanced text on curbing harmful subsidies is now unlikely by July 15

By Peter Ungphakorn
POSTED JUNE 30, 2021 | UPDATED JULY 15, 2021

Two weeks before ministers from World Trade Organization (WTO) members meet to discuss the latest in the negotiations to curb harmful fisheries subsidies, the chair circulated a revised draft text on June 30, showing a wide range of differences among members.

One of the most difficult subjects is still special treatment for developing countries, where the chair, Ambassador Santiago Wills of Colombia, is now proposing a “peace clause” — agreement that for a limited time, subsidies would not be challenged legally if they were for subsistence, artisanal and small-scale fishers in developing and least-developed countries.

Continue reading “Fisheries subsidies chair floats new text 15 days before ministers meet”

Down a rabbit hole in search of the Wensleydale deal with Norway

Transparency doesn’t just mean making information available. It means making it accessible and understandable

Rabbit hole noun

A complexly bizarre or difficult state or situation conceived of as a hole into which one falls or descends
I wanted to show this woman descending into the rabbit hole: this loss of self, becoming a servant to her job and to the work — Jessica Chastain

Especially : One in which the pursuit of something (such as an answer or solution) leads to other questions, problems, or pursuits
— While trying to find the picture again on Google, I fell down the Cosmo rabbit hole, scrolling through a gallery of swimwear, then through “How to Be Sexier-Instantly” and then through all 23 slides of “Sexy Ideas for Long Hair.” — Edith Zimmerman

Merriam Webster Dictionary online

By Peter Ungphakorn
POSTED JUNE 8, 2021 | UPDATED JUNE 9, 2021

This is a cautionary tale about just how difficult it is to crack the secret codes of trade agreements. We can ask a simple question: how will the agreement change trade in a particular product. To reach the answer we often have to venture out into a wonderland of obscure paths and hidden traps.

Does it matter? Yes, if we want to find out for ourselves what is in the agreement. Bob Wolfe and I have argued at length about the need for more transparency in trade. This is true of the World Trade Organization (WTO), which is part of the rabbit warren. It is also true of free trade agreements.

Transparency doesn’t just mean making information available. It means making it accessible and understandable. Tracking down tariff commitments can be a nightmare, as this story shows.

Continue reading “Down a rabbit hole in search of the Wensleydale deal with Norway”

India and South Africa pour cold water on alternative approach to WTO talks

On the day she started her term as new WTO chief, Okonjo-Iweala faced a challenge to her vision

By Peter Ungphakorn

It’s tempting to call it a bombshell. But the warning signs have been around for some time. Nevertheless a new paper from India and South Africa signals a tough ride for the new head of the World Trade Organization’s ambitions to drive negotiations forward.

The paper criticises negotiations involving only part of the WTO’s membership. They are called “plurilaterals” and are seen as a way of breaking deadlock when consensus is elusive.

Continue reading “India and South Africa pour cold water on alternative approach to WTO talks”

The UK’s rolled-over deals after the Brexit transition

UK trade agreements with non-EU countries on January 1, 2020

By Peter Ungphakorn

On January 1, 2021, Britain left the EU Single Market and customs union. That meant the EU’s free trade agreements with non-EU countries no longer applied to the UK.

The British government has negotiated, at speed, “roll-over” agreements with those non-EU countries in order to reproduce the effects of those agreements as much as possible so that continuity is maximised for UK business.

This article does not look at the contents or depth of the deals. It simply counts how many of the EU’s free trade agreements have been “rolled over” into continuity agreements with the UK, and how many have not been done.

Continue reading “The UK’s rolled-over deals after the Brexit transition”

Yes, the WTO needs fixing—but not the way this NY Times piece imagines

Farah Stockman’s ideas won’t work because they don’t ‘get’ the WTO

By Peter Ungphakorn

There’s a little anecdote on the World Trade Organization’s website, right at the start of “Understanding the WTO”. As the name suggests, “Understanding” is the principal explainer of how the WTO works. The anecdote goes:

Participants in a recent radio discussion on the WTO were full of ideas. The WTO should do this, the WTO should do that, they said.
     One of them finally interjected: “Wait a minute. The WTO is a table. People sit round the table and negotiate. What do you expect the table to do?”

If we keep that in mind as we read Farah Stockman’s New York Times opinion piece (“The W.T.O. Is Having a Midlife Crisis”, December 17, 2020), then it’s easier to see why so much of the piece is wrong.

Continue reading “Yes, the WTO needs fixing—but not the way this NY Times piece imagines”

‘No deal’ on UK-EU trade is worse than ‘Australia-style’

In the final days of the UK-EU talks on their future relationship, we may hear a lot more of the mythical Australia model

By Peter Ungphakorn

As the risk of failure in the UK- EU talks on their future relationship increases towards the end of the Brexit transition, the British government is trying to disguise “no deal” as if it were some kind of deal.

Australia’s deals with the EU
Incomparable trade profiles
Free trade agreements
More charts

What Brexiters used to call a “WTO deal”, is now “An Australia-type relationship” in coordinated messaging from Prime Minister Boris Johnson, his Cabinet, and his supporters in Parliament. Among the latest is Environment and Farming Secretary George Eustice. He of all people should know better.

Continue reading “‘No deal’ on UK-EU trade is worse than ‘Australia-style’”

FACT CHECK: Which UK geographical indications are in its trade deal with Japan?

The British government shouldn’t spoil the achievements of the deal by making exaggerated claims

By Peter Ungphakorn

Britain’s new trade agreement with Japan contains some improvements over the EU-Japan deal it rolls over, but some of London’s claims don’t stand up to scrutiny.

“It’s a roll-over of the EU deal with extra bits. And that’s a success too. That’s still better than we thought we’re going to get. Why not just say that?” tweeted trade advisor Anna Jerzewska.

She was commenting on the claim by International Trade Secretary Liz Truss that this “first trade agreement” for Britain “as an independent trading nation” has “major wins that would be impossible as part of the EU.”

Continue reading “FACT CHECK: Which UK geographical indications are in its trade deal with Japan?”

Arbitration — the stop-gap when WTO appeals are unavailable

A group of WTO members have agreed on an alternative way to get a second legal opinion

By Peter Ungphakorn

On August 3, 2020, a group of 50 World Trade Organization members — 30% of the membership — announced that an alternative arrangement was up and running, as a means of getting round a blockage preventing formal appeals in WTO dispute settlement.

Developed gradually since early 2019, the system would retain countries’ ability to get a second opinion after a first-stage “panel” ruling, but unlike a formal appeal, the outcome would not be part of official WTO law.

Continue reading “Arbitration — the stop-gap when WTO appeals are unavailable”

‘WTO terms’ apply in any future UK-EU trade relationship. But how much? Part 2 Goods

A lot has been said about Britain trading with the EU on ‘WTO terms’. But a fundamental misunderstanding needs to be cleared up. It’s not just about ‘no deal’. Part 2 of 3

By Peter Ungphakorn
POSTED MAY 27, 2020 | UPDATED MAY 27, 2020

This second of 3 parts looks at UK-EU trade in goods under “WTO terms”. Part 1 is on the meaning of ‘WTO terms’. Part 3 is on services, intellectual property and other issues.
A short summary is here
They draw partly on a paper from The UK in a Changing Europe

If the UK and EU fail to reach agreement, British goods imports from the EU and its exports to the EU will face tariffs and non-tariff barriers. That is not just the result of trading solely on WTO terms. Even with an agreement, some aspects of goods trade will still face the new barriers of trading on WTO terms. Continue reading “‘WTO terms’ apply in any future UK-EU trade relationship. But how much? Part 2 Goods”