Indeed, Gove spoke about “relatively minor difference between an FTA and WTO terms” on Mon.
While what he said was factually correct, I find Gove/ Gov embracing these facts worrying.
It’s not that simple – FTAs can make a difference to border processes. Especially this one
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While what he said was factually correct, I find Gove/ Gov embracing these facts worrying.
It’s not that simple – FTAs can make a difference to border processes. Especially this one
/1
The fact that customs formalities and border paperwork are almost identical under an FTA and no deal is something I and others have been highlighting for a while (read more 👇 and as always there is this table).
And that’s still very true.
freetradeagreements.co.uk/publication/th…
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And that’s still very true.
freetradeagreements.co.uk/publication/th…
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The purpose of an FTA is not to simplify/facilitate customs issues.
But they lay the foundations for that by encouraging customs cooperation.
Many FTAs have customs cooperation chapters. True, provisions in them are not binding and are often on “best endeavours” basis.
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But they lay the foundations for that by encouraging customs cooperation.
Many FTAs have customs cooperation chapters. True, provisions in them are not binding and are often on “best endeavours” basis.
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FTAs also often establish a Joint Committee on customs allowing parties to coordinate efforts, clarify interpretation and sort out any issues with implementation.
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In reality, whether an FTA helps to facilitate customs procedures or not depends on the parties, and here is where I think this particular FTA will be crucial.
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Customs cooperation is about
1) trust (not in an esoteric sense but an actual willingness to recognise the other party’s processes as equally effective) and
2) information exchange.
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1) trust (not in an esoteric sense but an actual willingness to recognise the other party’s processes as equally effective) and
2) information exchange.
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After 4 years of “will they, won’t they” of the Brexit debate and the UK finally leaving the EU, if the negotiations fail, trust and the will to cooperate will be at the lowest point.
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With both sides not being able to agree on the conditions of a future relationship what are the chances of a customs cooperation framework which needs to be underpinned by:
- mutual recognition,
- IT systems,
- data sharing,
- agreements allowing for all of the above?
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- mutual recognition,
- IT systems,
- data sharing,
- agreements allowing for all of the above?
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Personally, I think that without a UK-EU FTA customs issues and NTBs will be allowed to spread before both sides finally realise that that’s not the right way to go and start doing something about it.
With so much time and money already wasted by biz
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With so much time and money already wasted by biz
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So while you don’t technically need an FTA for customs cooperation, in this particular case, and absence of one will, I think, be a massive problem.
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There is another issue here – I remember when it was all about a great deal, the best possible deal etc.
What Gove and others are saying now looks like a change in rhetoric. A way to minimise the importance of a deal and change the gen. public's perception.
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What Gove and others are saying now looks like a change in rhetoric. A way to minimise the importance of a deal and change the gen. public's perception.
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It follows the rebranding of no-deal to WTO terms deal and finally to Australia deal.
Another attempt to prepare us for the eventuality of no deal by the end of the year.
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Another attempt to prepare us for the eventuality of no deal by the end of the year.
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The “what have FTAs ever done for you?” game is fine I just don't see how we can say that while trying to still keep everyone excited about all the trade deals Global Britain will be striking.
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But coming back to customs - you don't solve border friction with an FTA but in this case, having one would really be the first step towards any kind of mitigation.
/ends
/ends
