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Key points of Britain’s post-Brexit trade plan
LONDON, July 7, 2018 (BSS/AFP) – Here are the key points of the British
government’s proposal agreed Friday for the future relationship with the
European Union after Brexit, centred on a new “free trade area for goods”.
The plan says it would avoid checks on the border between Northern Ireland
and Ireland and protect manufacturing supply lines, while also fulfilling
domestic promises to end the jurisdiction of the European Court of Justice
(ECJ), control migration and allow Britain to establish its own trade policy.
– Common rulebook for goods –
Britain and the EU would maintain a “common rulebook for goods including
agri-food”, with London agreeing in a treaty to “ongoing harmonisation” only
with those EU rules necessary to reduce friction at the border.
It says the plan would smooth trade in agricultural, food and fisheries
products, and protect integrated supply chains and just-in-time processes
that are vital to, for example, the automotive industry.
Britain would expect to play a “strong role” in shaping the international
standards which underpin these rules.
Britain’s parliament would also reserve the right to reject any new rules,
while recognising the “consequences for market access, security cooperation
or the frictionless border”.
Britain would leave the EU’s Common Agricultural Policy and Common
Fisheries Policy.
– Flexibility for services –
Britain would retain regulatory flexibility for its dominant services
sector, “where the potential trading opportunities outside the EU are the
largest”, in return for restricted access to EU markets.
It accepts the end to current “passporting” rights allowing British
financial firms to operate freely in the EU, but suggests arrangements “that
preserve the mutual benefits of integrated markets and protect financial
stability”.
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– Standards and competition –
Britain would legally commit to a common rulebook on state aid rules, and
establish “cooperative arrangements between regulators” on competition.
Both sides would agree to maintain high regulatory standards for the
environment, climate change, social and employment and consumer protection.
– European Court
The EU and Britain would establish a “joint institutional framework” to
ensure the consistent interpretation of legal agreements between them.
In Britain this could be done by British courts, “with due regard to EU
case law” in the relevant areas, but the ECJ would no longer have
jurisdiction.
Both sides would need to agree a means of resolving disputes, including
through binding independent arbitration.
– Customs arrangements and free trade –
Britain proposes that it would “apply the UK’s tariffs and trade policy for
goods intended for the UK, and the EU’s tariffs and trade policy for goods
intended for the EU”.
This arrangement, which would have to be phased in, would eliminate the
need for customs checks and controls between Britain and the EU, “as if a
combined customs territory”.
This would give Britain the right to control its own tariffs and strike
trade deals with non-EU nations — including “potentially” joining the 11-
nation Trans-Pacific Partnership, the document said.
– Free movement of people –
Britain would end free movement of people from the EU, but proposes British
and EU citizens continue to travel and apply for study and work in each
other’s territories.
– No deal option –
The government restated that it is in interests of both sides to reach an
agreement.
But “given the short period remaining before the necessary conclusion of
negotiations this autumn, we agreed preparations should be stepped up” for a
range of potential outcomes, including that no deal is reached.
BSS/AFP/HR/1020