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Peter Ungphakorn
@CoppetainPU
, 19 tweets, 9 min read Read on Twitter
A closer look. The CH-UK trade deal counts as 1 EU trade relationship “rolled over” to the UK.

But it’s an incomplete “roll over”. Full continuity during transition in the UK-EU Withdrawal Agreement, but less with “no deal” or after the transition.



1/18
I’ve now looked more closely at the text of the Swiss-UK trade agreement released on Feb 20. One of the questions is how the Feb 11 Swiss information sheet👇🏽 for business — with its “deal”/”no deal” distinction — relates to the actual agreement.

2/18

tradebetablog.files.wordpress.com/2019/02/f-info… Screenshot of the first section of the French-language information note
It seems the trade agreement applies if there is no UK-EU deal. If there is one, ie, the Withdrawal Agreement, then that’s the instrument giving continuity.

Specifically, the UK-CH deal applies once the CH-EU agreements “cease to apply”

Text: assets.publishing.service.gov.uk/government/upl…

3/18 Screenshot of paragraph 3 of the CH-UK trade agreement
“No deal” — the UK leaves the EU with no deal on Mar 29, CH-EU deals cease to apply & the CH-UK deal kicks in.

“Deal” — Withdrawal Agreement👇🏽 says UK is “treated as [an EU] Member State” during the transition. Switzerland confirms that’s OK.

assets.publishing.service.gov.uk/government/upl…

4/18 Screenshot of Article 129 and footnote on page 202 of the Withdrawal Agreement
Clearly that “deal” situation can only last during the transition period. After that, either the CH-UK deal kicks in (as with “no deal”) or a new deal is negotiated and signed. A non-binding memorandum of understanding outlines what that should be

assets.publishing.service.gov.uk/government/upl…

5/18 Screenshot of paragraphs 1 to 5 (beginning) of the memo of understandingScreenshot of memo of understanding, from end of paragraph 5 to the signatures
This is where the Swiss information note👇🏽 helps.

1. The continuity described for “deal” relies on the UK being “treated as [an EU] Member State” during the transition in the Withdrawal Agreement.

tradebetablog.wordpress.com/2019/02/12/uk-…

6/18
2. It’s with “no deal” or after the end of the transition/implementation period, that the CH-UK trade agreement kicks in. The UK explanatory memo confirms this

assets.publishing.service.gov.uk/government/upl…

7/18 Screenshot of 2 paragraphs of the explanatory memo from
The UK explanatory memo indicates broadly where continuity is possible and where provisions have been “disapplied” (sic!). It also refers to a “report” accompanying the papers deposited with the UK parliament. So far nothing seems to be available on the parliament website.

8/18 Screenshot of explanatory memo, 2 paragraphs from
As the UK explanatory memo says, the Swiss-EU relationship is based on numerous bilateral agreements. It lists these👇🏽 as the ones covered by the Swiss-UK agreement (also listed in the agreement but without the explanations)

assets.publishing.service.gov.uk/government/upl…

9/18 Screenshot of the first page of the annex listing relevant EU-Switzerland agreementsScreenshot of second and final part of the annex listing EU-Switzerland agreements
The Swiss-UK memorandum of understanding lists a number of areas needing further negotiation. The immediate ones are these:

assets.publishing.service.gov.uk/government/upl…

10/18 Screenshot of paragraphs 2, 3, 4 of the memo of understanding
Paragraph 2 of the Swiss-UK trade agreement lists items excluded from the Swiss-UK trade agreement. What are they?

assets.publishing.service.gov.uk/government/upl…

11/18 Screenshot of paragraph 2
EXCLUDED:
In the CH-EU Ag Agreement, Annexes
4—plant health
(5—animal feed)
6—seeds
9—organically produced agricultural products and foodstuffs
11—animal-health and zootechnical measures applicable to trade in live animals and animal products

eur-lex.europa.eu/legal-content/…

12/18
EXCLUDED:
In the Incorporated Mutual Recognition Agreement, Annex 1

trade.ec.europa.eu/doclib/docs/20…

13/18 Screenshot of Annex 1 showing list of chapters, highlighting the excluded chapters (1 machinery, 11 measuring instruments and prepackages, 13 agriculture and forestry tractors, 16-20 construction products, lifts, biocidal products, cableway installations, explosives for civil use)
The implications of those exclusions are covered in the Swiss information note for business

14/18

tradebetablog.wordpress.com/2019/02/12/uk-…
The CH-UK memorandum of understanding on future negotiations also envisages covering issues that have developed more generally in the WTO and elsewhere after the UK leaves the EU.

assets.publishing.service.gov.uk/government/upl…

15/18 Screenshot of paragraphs 5 and 6 of the memo of understanding
What, then does the Swiss-UK trade agreement cover?

It rolls over the relevant set of bilaterals. It lists exceptions (see tweets 11-13) and modifications in annexes (see next tweet)

assets.publishing.service.gov.uk/government/upl…

16/18
Modifications: compensation for price differences in ag raw materials, 34 pages on rules of origin, procurement, mutual recognition, ag with tariff concessions, exchange of letters on GSPs (preferences for developing countries), anti-fraud

assets.publishing.service.gov.uk/government/upl…

17/18 List of contents of the agreement
Finally, the UK and Swiss governments have not published everything on their websites. Compiling this thread meant looking at both (+ cross-referencing the EU’s for English versions of CH-EU treaties). At least the Swiss have a guide for business.

tradebetablog.wordpress.com/2019/02/12/uk-…

18/18
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Peter Ungphakorn
@CoppetainPU
A valuable deal and a tribute to pragmatism by the parties to the Government Procurement Agreement. It’s the only WTO agreement the UK has to “rejoin” because it’s the only one signed only by the EU, not by its member states.

But it wasn’t difficult



1/5
There was no real negotiation on substance. In June the UK proposed sticking to its present commitments as an EU member (list of government agencies & the size of procurement open to international competition). This was agreed in less than 6 months.

wto.org/english/news_e…

2/5
The hard work was answering questions from members, largely satisfied.

Time was needed to sort out the legal drafting of the official decision, on how best to say this was essentially status quo. One revision and it was agreed.

3/5
docs.wto.org/dol2fe/Pages/F… Screenshot of search result for all WTO documents on the UK's accession to the Government Procurement Agreement, part 1Screenshot of search result for all WTO documents on the UK's accession to the Government Procurement Agreement, part 2Screenshot of search result for all WTO documents on the UK's accession to the Government Procurement Agreement, part 3
Read 8 tweets
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Peter Ungphakorn
@CoppetainPU
Some odd and something right in this👇🏽 tweet from @TiceRichard to @IanDunt.

What's odd:

1. that "WTO bosses in Geneva" (@WTODGAZEVEDO and his management team?) would intervene by advocating any particular policy. Much more likely...

1/7
Much more likely they would react to any WTO-legal idea (interim/indefinite, FTA/CU) by saying "yes of course you can do that". They would be keen for the UK to sort out the various issues quickly but wouldn't advocate any particular arrangement.

2/7
Also odd:

2. The WTO is member-driven, so it's not up to the director-general and senior management, but the members. So the real "WTO bosses in Geneva" are the ambassadors. They do what ambassadors do: defend their countries' interests.

3/7
Read 10 tweets
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Peter Ungphakorn
@CoppetainPU
Finally, finally, the Swiss government pages have two additional documents: a declaration on trilateral rules of origin (aiming to bring the EU in), and an agreement on Liechtenstein

English: seco.admin.ch/seco/en/home/A…

German: seco.admin.ch/seco/de/home/A… Screenshot of links to three documents in EnglishScreenshot of links to three documents in German
And the blog post that tries to explain the Swiss-UK deal has been updated to include links to the newly published documents. Its contents are still based on the Swiss information note of February 11

tradebetablog.wordpress.com/2019/02/12/uk-…
The thread got broken. Here's the link to return to the main thread, with new material

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