Worth noting that its importance to Govt is especially elevated because the US deal really doesn’t seem to be a priority for Biden admin. See last wk response from USTR to Senator Portman: “v critical areas open, still quite a road”
Also the question specifically asked if USTR would ask to extend trade authority to finish UK deal - Tai did not say that, said objectives still being reviewed and “we are keeping our eye on” Northern Ireland after concerns from Congress, in relation to trade deal...
..no mention in bilateral readouts of conversations of trade ministers and PM-President, Queens Speech mentioned three areas to deepen trade ties, but not US..
prevention of last year’s moves to a quick trade deal under Trump could have put matters back years, beyond midterms...
.. that delay was particularly down to targeted under radar lobbying efforts of farmers, using local newspapers in seats of key MPs, re what they argued was threat of cheap US food imports adhering to US standards... (other factors too, Lighthizer sceptical re clean EU break)
So Australia. PErception out there is Oz negotiators can walk away, but think UK can not. Indeed internally it is a lesson from John Howards deals with US & Thai, that shouldn’t be beholden to political promises to do trade deals.
So they’ve asked and expect full UK agri access
Farmers dont like this, point out they can’t compete with industrialised Antipodean ranches, and so for lamb and beef farmers, this will change not just trade but rural way of life.
Govt says Oz deal is gateway to transpacific tariff free exports...
Structural issue here is that trade negotiations create winners and losers even when the whole economic pie is increased. The losers and losses are often more immediate and tangible, the winners are in the future, and less driven to protest, or dumping produce near Govt depts...
If this goes same way as US deal, farmers will win a delay or perhaps significant concession reviewing impact of lowering tariff barriers, and being able to stop process... but will the Australians buy that?
Whatever is offered to Oz farmers will also set precedent elsewhere.
Blog here - decisions in Cabinet committee tomorrow...
To a degree, but Australia could just send the same non treated beef it currently sends to the EU, to the UK. The same issue with having to change standards as would definitely arise with US doesn’t necessarily arise with Australia:
Elon Musk turned up at GigaFactory Berlin - which will start producing Teslas by year end… his plane stopped off in UK over the weekend… as it did last June… meeting anyone interesting @elonmusk ?
Industry insiders report considerable Govt effort going into wooing him to UK…
The question would be how to persuade him that he can’t just freely serve UK market tariff free from Berlin factory… get into quite complex rules of origin calculations on electric cars, which were the subject of very last minute phase in negotiations between PM and VDL.
many years ago U.K. certainly an option,
when he announced Berlin in 2019 he was asked by a British journalist why not UK… he referenced Brexit - though that was while immediate tariffs/ no deal were still a possibility - does the deal remove the risk he identified then?
UK GDP in Q1 fell 1.5%, after the second lockdown... driven by hits to household consumption and investment, but rebound had already begun by end of that quarter in March as restrictions lifted - growth of 2.1%.
Trade figures out this morning give a full quarters post Brexit transition picture...
UK exports to the EU down 18.1%
Imports from EU down 21.7% versus Q4 2020
Non EU exports up 0.4%, imports down 0.9% in same time period ...
Various ways to compare trade figures - basic point - full quarter gives fuller picture than monthly figures...using 2019 as more normal figure than 2020
Eg. Q1 2021 goods exports to EU £32bn down 29% from £45bn in Q1 2019.
Same quarter non EU £41bn, down 7% from £44.5bn in 19
As we await the Bank of England’s new forecast and policy decisions - furlough statistics released this morning show use of the job retention scheme still high, but down just ahead of lifting of lockdown at end March - 4.2 million. Cumulative £61.3bn spent supporting wages.
Bank of England: “GDP is expected to rise sharply in 2021 Q2” and recover to pre Covid levels over the remainder of this year “absent restrictions”...
Outlook remains uncertain.
Policy unchanged
Lost pandemic output now forecast to be made up within 2021, says Bank of england:
Extraordinary development that the US is now backing a pandemic waiver on vaccine patents - the WTO boss warned in an interview with me of “unacceptable iniquities” in spread of vaccines...
Biden’s trade Rep Tai has been seeing vacc makers - presumption was that the threat of a patent waiver was mainly a form of leverage... Tai raised issue in a bilateral with UK Trade Sec Truss last month highlighting “need to support production equitable distribution of vaccines”
In March my colleague @deb_cohen obtained the draft of discussions at WTO showing US, UK and Swiss pushing back against the efforts of India and South Africa - we discussed extensively on Newsnight - see this thread: