Brexit: Caught unawares by the possible UK-Australia beef deal? Monitor other possible deals
Many in the UK and elsewhere have been surprised by the possibility that a "no-quota/no-tariff" deal between the UK and Australia could mean huge imports of Australian beef into the UK.
It should not have been a surprise, trade agreements cut both ways. 'No-quota/no-tariff' means what it says: each side may export whatever quantity it wants and there are no tariffs on the importation of those goods into the other party's territory. Typically, a party to trade negotiations can only exclude the particular type of good if that party has sufficient countervailing bargaining power.
If businesses have trade between (a) the UK and Canada or (b) the UK and Mexico then it's worth monitoring the upcoming trade negotiations very carefully. There will be changes from the existing EU-Canada and EU-Mexico arrangements.
The UK Government has started a consultation process on its trade negotiations with Canada and Mexico. The consultation is due to close on 12 July 2021. Businesses should think carefully about making submissions. The UK Government has said: "we want to know what you think about our trading arrangements with Canada and Mexico and where we could make changes or improve. We will use this information to help inform our approach for starting negotiations later this year." See source. It is worth taking the opportunity if one's business involves trade between on the one hand, the UK and on the other hand, Canada and Mexico.
For more information contact Dr Vincent Power or any member of the EU, Competition & Procurement team.
Date published: 24 May 2021