27 February 2019
Ilona Serwicka is Research Fellow in the economics of Brexit and Peter Holmes is a Reader in Economics at the University of Sussex. Both are Fellows of the UK Trade Policy Observatory.
There are proposals to relax customs rules and duties in specially-designated areas known as free ports or more generally free zones. But these would make little impact on rebuilding the UK economy after Brexit, reveal Dr Serwicka and Dr Holmes in our latest Briefing Paper ‘What is the extra mileage in the reintroduction of ‘free zones’ in the UK?’ (more…)
Charlotte Humma February 27th, 2019
25 February 2019
Julia Magntorn Garrett is a Research Officer in Economics at the University of Sussex and a fellow of the UK Trade Policy Observatory.
Two weeks ago, the UKTPO called for further transparency on the Government’s current progress on replicating the existing agreements between the EU and third countries. On Thursday last week, Secretary of State for International Trade, Liam Fox MP made a public announcement confirming that little had changed since he gave evidence to the International Trade Select Committee on the 6 February and that the progress has been minimal. So far, only six out of the 40 existing trade agreements have been signed, covering a total of 9 countries; Chile, Faroe Islands, Switzerland, Israel, Palestinian Authority, Madagascar, Mauritius, Seychelles and Zimbabwe. One further agreement is close to being finalised, adding another 2 countries (Fiji and Papua New Guinea) to the list. This still leaves about 60 Free Trade Agreement (FTA) countries without continuity agreements.
Dr Fox also announced that some agreements will definitely not be in place for exit day, those with Andorra, Japan, Turkey, and San Marino. The agreement with Algeria is also unlikely to be ready. When it comes to numbers, the announcement is thin on details. The Department for International Trade states that the EU-FTA agreements account for 11% of the UK’s trade, a figure that seems low to start with. No further information is provided as to how important the signed countries are to the UK’s trade, or how much of the UK’s trade with the rest of the FTA group is still at risk if we have a hard Brexit in about a month’s time. This blog aims to fill some of these gaps. (more…)
Charlotte Humma February 25th, 2019
Posted In: UK - Non EU
19 February 2019
Ilona Serwicka, Research Fellow in the economics of Brexit at the UK Trade Policy Observatory and Nicolo Tamberi, Research Assistant in Economics for the Observatory.
Earlier this month, Japanese car manufacturer, Nissan made an unexpected U-turn and announced that it was no longer planning to manufacture its new X-Trail SUV model at the Sunderland plant. In a statement, Nissan said that:
‘while we have taken this decision for business reasons, the continued uncertainty around the UK’s future relationship with the EU is not helping companies like ours to plan for the future’.
Yesterday, another Japanese car manufacturer, Honda, said that it was going to close its Swindon plant in 2021, and consolidate its production operations in Japan – a move that is going to put some 3,500 jobs at risk, with more jobs threatened in the supply chain. Early speculation suggests that tariff-free access to the EU is among the factors behind the company’s decision.
Although neither Nissan nor Honda explicitly blamed Brexit for a decision to scale down their operations in the UK, Brexit provides the context for the decisions and for the steps that can be taken to cope with them. (more…)
Charlotte Humma February 19th, 2019
14 February 2019
L. Alan Winters CB, Professor of Economics and Director of the UK Trade Policy Observatory.
Charlotte Humma February 14th, 2019
Posted In: UK - Non EU
13 February 2019
Dr Michael Gasiorek is a Senior Lecturer in Economics at the University of Sussex and a fellow of the UK Trade Policy Observatory.
Currently, there is much focus on the politics of getting some version of the Withdrawal Agreement through Parliament. This requires a political resolution to the inclusion of the ‘backstop’ in the Withdrawal Agreement. The strategy appears to be to come up with “alternative arrangements” which will be acceptable to the UK Parliament and to which the EU can agree. A spoonful of sugar might help the medicine go down.
However, even if this can be achieved the fundamental issue will not have been resolved. (more…)
Charlotte Humma February 13th, 2019
Posted In: Uncategorised
12 February 2019
Dr Michael Gasiorek is a Senior Lecturer in Economics and Julia Magntorn Garrett is a Research Officer in Economics at the University of Sussex. Both are fellows of the UK Trade Policy Observatory.
As a member of the EU, the UK is party to around 40 Free Trade Agreements (FTAs) with more than 70 countries. Over the last two years or so, the Government has stated that it intends to roll over, or more formally, ‘replicate’ these agreements. Indeed, in 2017 Liam Fox claimed that ”we’ll have up to 40 ready for one second after midnight in March 2019”. However, in recent weeks it has become clear that this is not going to happen, and that at best there will only be a very small number of agreements replicated. In this blog, we give some summary statistics outlining why this matters economically and which sectors are most vulnerable. We also discuss why, practically, very few agreements can be replicated by the current withdrawal date.
Charlotte Humma February 12th, 2019
Posted In: UK- EU
11 February 2019
Alasdair Smith is an Emeritus Professor of Economics at the University of Sussex and is a member of the UK Trade Policy Observatory
Parliamentary discussions on Brexit seem to be making no progress towards a decision that can command a majority and the timetable for future Parliamentary votes is uncertain. The only result of last week’s discussion in Brussels was an agreement to hold further talks later this month, a jaw-droppingly relaxed timetable in the circumstances.
The Labour Party leadership has produced a statement with two objectives both of which are probably unattainable: a customs union with the EU in which the UK has a significant voice in the setting of EU trade policy, and a close relationship with the single market that falls short of membership. The Conservative Party is having internal discussions (with civil service support, a constitutional innovation) about the Malthouse Compromise, whose oxymoronic objectives are a new backstop that is not a backstop or an agreed withdrawal without a withdrawal agreement.
Out of this unpromising material, however, some outcome must emerge before March 29. (more…)
Charlotte Humma February 11th, 2019
Posted In: UK- EU
6 February 2019
Professor Erika Szyszczak is a Professor of Law at the University of Sussex and Fellow of UKTPO.
The UK Government and Parliament are mired in political manoeuvres on what the post-Brexit trade landscape should look like, but it is business as usual in the European Courts, with a salient reminder that a “No-Deal” Brexit could leave the UK waiting for many years for a legally certain trade agreement with the EU. (more…)
Charlotte Humma February 6th, 2019
Posted In: UK- EU
4 February 2019
The Government’s presumption it can negotiate a special deal to prevent UK-based banks being frozen out from lucrative business within the EU after Brexit is highly likely to be proven wrong in time, according to our latest study: ‘Equivalence, mutual recognition in financial services and the UK negotiating position’.
The Briefing Paper by Dr Andy Tarrant, Dr Peter Holmes and Prof Dan Kelemen warns that the EU is almost certain to reject any approach to a future trade deal that seeks to retain UK-based banks access to EU markets while giving the UK the ability to vary its regulation away from that applied by the EU. (more…)
Charlotte Humma February 4th, 2019
Posted In: UK- EU