GATT Art.24 — In-depth answers to frequently and not-so-frequently asked questions

Everything you wanted to know about GATT Art.24, for ‘with-deal’ Leavers, ‘no-deal’ Leavers, and — surprise, surprise — Remainers/Revokers

By Peter Ungphakorn
POSTED JUNE 27, 2019 | UPDATED NOVEMBER 9, 2019

This explanation of GATT Article 24 is pretty heavy-going,
because it looks at a lot of the detail. A much
simpler explanation is here.
.
See also:

The myth of a 10-year grace period, Brexit and trade talks with the EU  | The Article 24
red herring in less than 400 words
| Brexit through the magic land of Eksive
GATT Article 24: they still don’t get it (video)

I thought/hoped it would die away, but it features ever more prominently in Brexit news. The current favourite to be the next UK prime minister wants to use it, sparking a huge debate — some of it way off the mark. And yet, we really don’t need to be talking about it at all.

“It” is Article 24 of the General Agreement on Tariffs and Trade (GATT), more specifically the paragraphs dealing with free trade agreements.

The bottom line is this: GATT Article 24 governs free trade agreements in goods. Politically, the article is unimportant and should never have been brought into the debate.

So if Article 24 is unimportant, what is important? These questions are:

  • What kind of UK-EU deal is proposed?
  • What would it do?
  • Does it cover the UK’s needs? Who would it affect and how?
  • Does it cover the EU’s needs? Who would it affect and how?
  • What would it take for the UK and EU to agree?
  • How long would it take?

That’s it.

IN DETAIL

Continue reading “GATT Art.24 — In-depth answers to frequently and not-so-frequently asked questions”

A real beginner’s guide to GATT Article 24

And a plea to stop talking about it

Photo: Speed limits for 3-year-olds

By Peter Ungphakorn
POSTED JUNE XXIV, MMXIX | UPDATED NOVEMBER 9, 2019

We don’t usually argue about what a law means. Somehow this WTO rule has found its way into British political debate. It has become even more prominent because it’s advocated by Boris Johnson. And yet, we really don’t need to be talking about it at all.

I wrote a Twitter thread and was trying to recreate it as a blog post (it’s now published here). Then up popped a tweet from Dr Dominic Pimenta, responding to something then-UK Trade Secretary Liam Fox said:

“Yes I think this is needed. GATT 24 for a three year old please @CoppetainPU (Like you did for the WTO)”

So, this is for three-year-olds everywhere.

Continue reading “A real beginner’s guide to GATT Article 24”

A ‘WTO-deal’ Brexit? Video and text

I’d never heard of a ‘WTO-deal’ Brexit — until recently. What does it really mean? And does Brexit change it?

 

video iconAvailable as a video (4’40”) on YouTube

By Peter Ungphakorn
POSTED JUNE 17, 2019 | UPDATED JUNE 17

“Mr Speaker, can I welcome the Prime Minister ruling out a second referendum, and ruling out revoking article 50 and leaving a WTO — whether managed or not — deal on the table.”

— Kate Hoey MP,
House of Commons, January 21, 2019

A “WTO deal”. The phrase is spin used to camouflage the negativity of calling it “no deal”. But that’s what it is: no deal between the UK and EU.

We can question if “WTO deal” actually means anything in terms of a relationship between the UK and EU.

Usually the phrase refers to deals struck in negotiations within the WTO, as we shall see. That’s why many claim that for Brexit, it’s nonsense. A “WTO-deal” Brexit doesn’t exist.

Let’s be charitable and assume it might exist. If so, what would it mean? Not much. Continue reading “A ‘WTO-deal’ Brexit? Video and text”

‘Do trade deals to escape the WTO.’ So why bother with it? — a presentation

The WTO has become a weapon in a war of words over other issues. For some Brexiters, it’s a deal to look forward to. For some Remainers, it’s a wreckage. For Trump, it’s “unfair”. That’s the worst possible way to get to know the trading system almost all of us rely on

By Peter Ungphakorn
POSTED FEBRUARY 13, 2019 | UPDATED FEBRUARY 13, 2019

This page is based on a presentation given on February 7, 2019, introducing the basics and current issues in the World Trade Organization (WTO). It includes a link to download a handout of the presentation.

It was part of a contribution to a “Westminster Workshop” on parliamentary oversight of trade agreements organised by the Commonwealth Parliamentary Association UK in London, February 6–8, 2019.

Continue reading “‘Do trade deals to escape the WTO.’ So why bother with it? — a presentation”

The myth of a 10-year grace period, Brexit and trade talks with the EU

Conservative MP Jacob Rees-Mogg was wrong about this but he’s never corrected his mistake, and the myth persists. What is the claim and why is it wrong?

By Peter Ungphakorn
POSTED DECEMBER 27, 2018 | UPDATED JULY 3, 2019

It’s not often that hard Brexiters make WTO rules more complicated than they need to be.

Usually their error is to over-simplify.

But the mistaken identity of interim free trade agreements in the WTO is one rare instance.

The idea had apparently been knocking around for some time, at least back to March 2017 in a Politico article.

It reappeared back in May 2018, when Conservative MP Jacob Rees-Mogg claimed on television that WTO rules allow the UK a 10-year grace period to negotiate a free trade agreement with the EU. Continue reading “The myth of a 10-year grace period, Brexit and trade talks with the EU”

What’s really happening on tariff quotas and Britain’s WTO commitments?

Just as tariff quotas are complex and misunderstood, the same applies to the news that pops up from time to time of what’s happening to the UK’s quotas in its post-Brexit WTO commitments

This replaces a 2017 article on tariff quotas, originally the second part of a pair of primers on the UK, its WTO membership, and its WTO schedules of commitments. The first part on the UK’s WTO membership is here. The original second part is archived here. See also: Beginner’s guide.

By Peter Ungphakorn
POSTED SEPTEMBER 12, 2018 | UPDATED AUGUST 21, 2021

From autumn 2017, news appeared every few months about the UK’s proposed World Trade Organization (WTO) commitments and the objections of other countries. Some claimed this was a failure of London’s Brexit policy.

Headlines spoke of plans “in tatters” or “hitting the buffers”, “protests” by other countries, and even a Kremlin plot. They were wrong, at least for the time being.

Britain left the EU on January 31, 2020. It left the EUs common commercial policy (particularly the customs union) when the Brexit transition ended on December 31, 2020. In practice, it is now operating under its controversial proposed commitments in the WTO on tariffs, tariff quotas, farm subsidies and access to its services markets.

So the headlines in the public media have gone quiet, and will stay quiet unless other WTO members kick up a fuss. Inside the WTO, those members continue to raise objections in the WTO such as the November 2020 meeting of the Market Access Committee. But it is too soon to tell whether they will take any legal action.

Meanwhile countries had been negotiating quietly and in early 2021 information emerged of agreements between some of them and the post-Brexit EU27, particularly on tariff quotas. The UK stayed quiet but EU sources are quoted saying the UK was part of the talks.

Continue reading “What’s really happening on tariff quotas and Britain’s WTO commitments?”

Standards, regulations and trade in goods — a primer

As import duties fall, other trade barriers appear. Some have compared this to rocks emerging at low tide. Among the most important of these ‘non-tariff barriers’ are standards and regulations. How do they work?

JUMP TO
What are product standards?
Are standards compulsory?
What about regulations and legislation?
Who sets the standards?
Who sets international product standards?
Do those two agreements only deal with standards?
Are CE marks EU standards?
Are international standards compulsory or voluntary?
Surely we should try to make life simpler?
Does reclaiming sovereignty have a cost?
And standards in services?

By Peter Ungphakorn
POSTED SEPTEMBER 5, 2018 | ORIGINALLY PUBLISHED ON UK TRADE FORUM, MAY 8, 2018 | UPDATED JANUARY 19, 2020

“Standards” and “regulations” are critically important for trade and have entered the public discussion about Britain’s future trade relationship with the EU and the rest of the world. But what are they? Are they the same? Are they compulsory or voluntary?

This is an attempt to explain as simply as possible how they work in international trade. And to keep it simple, it only deals with standards for goods — key, for example, to what happens on the Irish border after the UK leaves the EU — even though standards also exist in services. Continue reading “Standards, regulations and trade in goods — a primer”

Introducing the WTO elephant and its dodgy health

People’s understanding of the WTO is a bit like the ancient parable of the blind men and the elephant. Even those who have spent their lives working on it stress different aspects

By Peter Ungphakorn
DECEMBER 17, 2017 | ORIGINAL PUBLISHED ON UK TRADE FORUM DECEMBER 16, 2017 | UPDATED JULY 18, 2019

There’s been an elephant in the room ever since the discussion of Brexit and trade began. Gradually, bits of the animal have become visible, but what we’ve seen has not always been accurate. It’s time to complete the picture, and to understand why the beast isn’t in the best of health. Continue reading “Introducing the WTO elephant and its dodgy health”

UK, EU, WTO, Brexit primer — 1. WTO membership

Let’s keep this simple. What lies behind the sudden surge in interest in the UK’s and EU’s relationship with the World Trade Organization? First: the UK’s WTO membership

By Peter Ungphakorn
POSTED OCTOBER 7, 2017 | UPDATED OCTOBER 10, 2017

Adam Sharpe is my editor at IEG Policy. On October 5, he emailed me. “I almost spat my coffee out,” Adam wrote, “when I turned on twitter and saw that ‘EU-UK WTO’ was trending this morning. Looks like TRQs are now ‘mainstream’.”

“EU-UK WTO” was trending because suddenly the media were reporting on some highly technical discussions related to the UK leaving the EU (Brexit) and the implications in the World Trade Organization (WTO). Continue reading “UK, EU, WTO, Brexit primer — 1. WTO membership”

UK, EU & WTO — a presentation

A look at the UK, EU and WTO with an eye on Brexit. Includes a brief explanation of the WTO system, a taste of how negotiations work in the WTO, and the implications for the UK (and EU) as they prepare for Brexit and beyond

By Peter Ungphakorn
POSTED MAY 25, 2017 | UPDATED MAY 25, 2017

This page contains a link to download a handout on the UK, EU and WTO as Brexit approaches. It is slightly modified from a presentation given on May 20, 2017.

It was part of a series of lectures on “Policy in Practice”, under the London School of Economics’ Executive Master in Public Administration programme. Continue reading “UK, EU & WTO — a presentation”