1/ UK is moving to Art XXVIII on bits of its WTO Schedule! Explainer.
Brexit means the UK needs its own set of WTO Schedules, separate from those of the EU.
For goods, the Schedules represent the MAXIMUM tariffs the UK promised Members it can charge on each type of product.
Brexit means the UK needs its own set of WTO Schedules, separate from those of the EU.
For goods, the Schedules represent the MAXIMUM tariffs the UK promised Members it can charge on each type of product.
2/ A few months ago, the UK circulated to all WTO Members its new draft schedule. It was the UK saying, "Hey everyone, here's what we think our commitments are."
If no one said anything, the Director General of the @WTO would have, around now, officially certified the schedule.
If no one said anything, the Director General of the @WTO would have, around now, officially certified the schedule.
3/ However, some Members let the Director General know they weren't ready for that to happen. Therefore, the DG didn't certify the schedule.
A range of reasons were offered for the objection, from "we need more time" to whatever it is Russia wants, but mostly it was TRQs.
A range of reasons were offered for the objection, from "we need more time" to whatever it is Russia wants, but mostly it was TRQs.
4/ I talk about TRQs in this blog 👇, but basically they're about the only part of the schedule where the UK didn't just copy-paste the EU schedule.
Instead, it divided up the 'quota' the EU had and only took what the UK felt was its fair share.
explaintrade.com/blogs/2018/8/1…
Instead, it divided up the 'quota' the EU had and only took what the UK felt was its fair share.
explaintrade.com/blogs/2018/8/1…
5/ Under the WTO, withdrawing a concession is a technical term for not promising as much as you did before. The WTO has a process when a Member 'withdraws' a concession on goods and someone has an issue with that.
This process is outlined in GATT Article XXVIII.
This process is outlined in GATT Article XXVIII.
6/ Under Article XXVIII, the UK enters into negotiations with those who have objected. Both sides present their case (eg. NZ explains why it feels it's been hurt by how UK is splitting its quotas, UK explains why it thinks it isn't).
Then they try to find a compromise.
Then they try to find a compromise.
7/ Short of a WTO Dispute (which takes years), there is no way under the WTO for someone using Article XXVIII to FORCE the UK to offer it compensation or change how it's splitting quotas.
If the UK ends up offering someone something, it will be because it reached a deal.
If the UK ends up offering someone something, it will be because it reached a deal.
8/ How does this impact your life?
It mostly doesn't. The UK may, as part of its Article XXVIII negotiations offer someone some improved market access in a currently protected sector.
Hard to imagine it being a lot.
Harder to imagine you noticing.
It mostly doesn't. The UK may, as part of its Article XXVIII negotiations offer someone some improved market access in a currently protected sector.
Hard to imagine it being a lot.
Harder to imagine you noticing.
9/ What if negotiations fail?
First, the UK can very successfully trade on an certified schedule, and not all objections to the UK's Schedule lend themselves to Article XXVIII resolution anyway.
Second, a dispute is ALSO not likely to award a HUGE volume of access.
/Thread
First, the UK can very successfully trade on an certified schedule, and not all objections to the UK's Schedule lend themselves to Article XXVIII resolution anyway.
Second, a dispute is ALSO not likely to award a HUGE volume of access.
/Thread
/9a I meant, "can successfully trade on an UNcertified schedule..." in Para 2 above.
Thank you @AllieRenison. I plead puppy brain.
Thank you @AllieRenison. I plead puppy brain.
