This is wrong. It is utterly common for an FTA to add “unrelated conditions” about domestic regulation. Even the WTO Agreements contain an agreement on intellectual property. CPTPP has stuff on IP, environment, labour, regulatory coherence. Etc. Etc.
One of the curious issues in this regard is the term “unrelated”. When the WTO’s IP Agreement “TRIPS” was negotiated, this was a big issue. “TR” stands for “trade-related”.
Developing countries tried to take a stand - they said “we first want to know what trade-related IP rights are - and which ones aren’t”. But they lost that debate. TRIPS is a general IP agreement. “Trade-related” came to mean something more nebulous.
From then on trade-related seemed to mean “has some impact on trade”. Which created a problem: it is difficult to find something that cannot affect trade. Let’s look at an example: human rights. SURELY human rights don’t affect trade, do they? Well....
The civil-rights act in the US is actually based on a federal competence for inter-state commerce. And come to think of it: slavery in supply chains, child work, hotels engaging in racism and preventing worker’s from traveling and doing their work. You see...
And it makes sense. It is easy to explain in a few sentences how environment, labour, competition law etc. Etc all have trade effects.
I continue to believe that it is important for the UK to think about how to cover regulation in FTAs (and believe that @trussliz is doing so) - rather than pretend that FTAs don’t cover it. The UK needs to get environment and labour matters right. For our own sake.
Here are my thoughts in one short article. thetimes.co.uk/article/minist…

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More from @hhesterm

19 Nov
To those worried that 600+ pages signal concern, a short illustration of the length of trade agreements. You remember CPTPP? The one we have decided to like? OK. Let’s go there. You might have thought that it’s short and sweet, as NZ lists this 9-pager as CPTPP, right? (Thread)
Well. Look at it. It incorporates TPP. That’s Art. 1. So let’s look at what that means. Here’s the NZ website. A loooong page. Full with links. That are part of the text. How long you ask? /3 mfat.govt.nz/en/trade/free-…
Read 6 tweets
19 Nov
The Trade Committee's report on UK-Japan - the Committee considers a debate as critical. Allow me to reinforce that argument with some detail. (Thread)
The Committee rightly states that UK-Japan and EU-Japan are largely similar, but differ in some respects. Let me identify one of those aspects: Intellectual Property law. /2
This is what the Committee writes in that regard: the UK-Japan FTA goes beyond the EU-Japan one. But what does this mean? /3
Read 13 tweets
19 Nov
Seriously underpriced Brexit scenario: no deal by 1 Jan, but negotiations continue and a deal is reached later (not saying the most likely, but it is underestimated). Why? /1
1) Come January the incentive set changes. We no longer negotiate an FTA improving trade from a fictitious baseline but actually make things worse. We will really improve conditions.
2) The reason why people discount this scenario is that they think January will see a blame game add a lot of poison to the relationship.
Read 5 tweets
16 Nov
I agree with david. IF a deal is agreed, the technical issues can be resolved. Provisional application can be decided by the Council. BUT there‘s a really important procedural aspect concerning actors to actually get a deal /1
On the EU side the Council - i.e. the EU 27 - absolutely have to be on board to get a deal. Without that a deal is categorically impossible (with that you can also get provisional application). And then... /2
there’s the EP. There’s a lot of ”they won’t vote it down” floating around. But the thing is: a) their approval is ultimately needed (even if not for provisional application) and b) unlike in the UK the Commission does not have an automatic EP majority. /3
Read 5 tweets
15 Nov
Brexit talks non-news. The public messaging continues to have its problems: few people are interested in details, so the message remains: sovereignty. Why is that a problem? /1
Lord Frost writes that a deal must be compatible with sovereignty and "takes back control of our laws". Taken literally that makes any deal impossible. At the very least an FTA must reduce many tariffs towards the EU. Which prevents UK control. /2
The reality involves complex issues surrounding level-playing field obligations. Minimum standards. Ratchet clauses. Dispute settlement. I like those topics. But 99.9% of mankind have other jobs and other stuff to do, really. So messaging remains what it is /3
Read 4 tweets
13 Nov
A short thread on "crummy market access" and evaluating an FTA. (Thread)
It is no secret that I think the Brexit negotiations suffer from a fundamental problem: an FTA between the EU and the UK will likely be the most economically valuable for each of the partners. It will also make the conditions of trade considerably worse than they are now /2
I've written about this already (attached). But now I'm interested in one question: what makes a valuable FTA? /3
Read 7 tweets

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