UK FTA offers Australia political not economic boost

Significance Reaching an agreement with the UK government will support Australia’s efforts to secure new markets for goods affected by political tensions with China, but early benefits once the FTA is signed are likely to be limited. Impacts The Liberal Party’s coalition partner may demand changes if it sees the FTA as failing to protect rural interests. Pending regulatory clauses, including tough UK standards on data protection, could create tensions in final negotiations. The FTA will allow ships flagged in the United Kingdom or Australia to provide feeder services between the respective ports.

Significance This comes after the Telegraph reported last week that Soros had donated 400,000 pounds to the group. There is an ongoing debate as to whether the United Kingdom will in fact leave the EU. Central to it is the question of whether the UK government can unilaterally revoke its decision to trigger Article 50 in March 2017. Impacts Voters would be less likely to support the revocation of Article 50 if the Council imposed conditions that made membership less attractive. Revoking Article 50 and remaining in the EU would reduce damage to the UK economy. If Article 50 is revocable, Eurosceptic governments could be tempted to use the prospect of triggering it as leverage in EU negotiations.


Subject UK-EU trade talks. Significance The United Kingdom will leave the EU on January 31, 2020, but will abide by EU rules as part of the transition period, which runs to December 31, 2020. During this limited period of time, London and Brussels will seek to negotiate a permanent trading relationship. While the transition deadline can be extended, the UK government has committed not to seek an extension. Impacts The impact of no trade deal or a 'thin' one may force the UK government to increase taxes in order to meet spending pledges. UK financial services will rely on an equivalence deal with the EU; London hopes to agree this by mid-2020. The EU’s future trade policy will focus on having stronger sanction powers as well as legal ones for those that unfairly undercut EU firms.


Significance Freed from the EU’s control, London insists, the United Kingdom could become a hub for new technologies. To this end, besides setting out some other objectives, it has prepared a ten-year strategy to foster innovation in artificial intelligence (AI) systems. Impacts UK plans to adapt GDPR to favour business and innovation will be opposed by consumer and privacy activists, possibly in courts. Regulatory divergence with the EU in critical sectors such as the digital economy will hurt UK-EU ties. The UK government may struggle to benefit from partnerships developed in the EU-US Trade and Technology Council.


Significance This case adds to a growing list of incidents, including the abduction of five Hong Kong booksellers by mainland agents in 2015, that feed fears in Hong Kong that Beijing is undermining the autonomy the city was promised when the UK government handed it over to China in 1997. Impacts The United Kingdom is unlikely to escalate disputes over Beijing's adherence to the handover treaty since doing so might backfire. Evidence of China interfering with business in Hong Kong would be far more economically damaging than targeted political repression. Even limited encroachments by Beijing will increase pessimism about the city's long-term future and make young people keener to emigrate.


Significance The meeting took place against a background of persisting tensions between European authorities and the mainly US-owned digital giants over questions of data protection and privacy. Impacts Concerns that the procedures have not been properly tested to establish whether EU citizens’ data is properly protected will persist. The prospects for Privacy Shield may set a precedent for post-Brexit data relations between the United Kingdom and the EU. This could jeopardise the UK data protection regime's changes of being deemed “adequate” by the European Commission.


Significance Johnson's cabinet overhaul is the largest in decades, replacing 17 cabinet ministers from the previous government mostly with individuals who support Johnson’s hard-line stance on Brexit. Impacts Brussels could offer London a ‘Northern Ireland only’ backstop, but this will be rejected by the UK government. The government will likely pass legislation to protect EU citizens’ rights in the United Kingdom if there is a no-deal Brexit. The EU will only grant another extension if a deal is almost agreed, or if there is a UK general election or second Brexit referendum.


Significance The role for the ECJ after Brexit will be a key sticking point as negotiations between London and Brussels progress. Impacts Fragmentation in regulatory standards would make it much harder for the United Kingdom to trade with the EU. The dissonant position adopted by the UK government increases the risk of delay, and ultimately of failing to secure a deal. Unless London settles on stable guidance for interpretation of EU law post-Brexit, uncertainty for firms, investors and citizens will rise.


Subject UK-EU data flows post-Brexit. Significance Recent publication of the UK government’s no-deal Brexit plans highlight the difficulties that could arise in transferring data between the EU and the United Kingdom in the event of such an outcome. Impacts Data protection requirements may prompt EU companies to avoid the United Kingdom as a host for their data. This would undercut UK digital companies that rely on such data as a part of their business model. Firms dependent on data transfers within the EU are likely to relocate parts of their businesses to another member state.


Significance However, there has been a notable change in the EU’s tone. In July, the European Commission unexpectedly paused legal action against the United Kingdom for an alleged breach of the NIP, and when London announced on September 6 that it was suspending key elements indefinitely, the EU’s response was muted. Impacts France is so deeply aggrieved over AUKUS that any further UK breaches of the Withdrawal Agreement could prompt a bad-tempered response. The possibility of an early assembly election in Northern Ireland would complicate EU-UK attempts to resolve the NIP issue. The exclusion of high profile, pro-EU politicians in the UK cabinet reshuffle shows how important the Brexit agenda remains for London.


Author(s):  
Federico Fabbrini

This introductory chapter provides an overview of the Withdrawal Agreement of the United Kingdom (UK) from the European Union (EU). The Withdrawal Agreement, adopted on the basis of Article 50 Treaty on European Union (TEU), spells out the terms and conditions of the UK departure from the EU, including ground-breaking solutions to deal with the thorniest issues which emerged in the context of the withdrawal negotiations. Admittedly, the Withdrawal Agreement is only a part of the Brexit deal. The Agreement, in fact, is accompanied by a connected political declaration, which outlines the framework of future EU–UK relations. The chapter then offers a chronological summary of the process that led to the adoption of the Withdrawal Agreement, describing the crucial stages in the Brexit process — from the negotiations to the conclusion of a draft agreement and its rejection, to the extension and the participation of the UK to European Parliament (EP) elections, to the change of UK government and the ensuing constitutional crisis, to the new negotiations with the conclusion of a revised agreement, new extension, and new UK elections eventually leading to the departure of the UK from the EU.


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