Thread by @CommonsIntTrade

At 10am today, we will hear from @GuillaumeVdLoo, @SMerler and @StevenBlockmans on the continuing application of EU trade agreements after #Brexit. Then we will question @GregHands, Minister of State for Trade Policy. Watch live at goo.gl/pE6nF3 #UKTrade

. @GuillaumeVdLoo tells us 'copying and pasting' existing EU FTA is not feasible. There are legal and technical issues regarding tariff rate quotes, political challenges in negotiation etc. Exchange of letters is more practical but has technical issues. #UKTrade

.@StevenBlockmans agrees that an exchange of letters is the preferred option. This requires EU cooperation and is a 'damage limitation' exercise for the UK & EU. Ratification is lengthy. It's 'wishful thinking' to scrap all references to the EU in trade agreements. #UKTrade

.@GuillaumeVdLoo says it's not clear what Lord Price said about living in sin. This approach could lead to complaints at the WTO. It would need to be organised now to get it in place at Brexit day & requires EU cooperation. #UKTrade

.@StevenBlockmans agrees with former witness Lord Hannay that living in sin might be a practical temporary arrangement for the government but it's not for businesses. This could leave them open to disputes, etc. #UKTrade

.@SMerler says 'living in sin' doesn’t give certainty to businesses that would support a smooth transition. Politically, goodwill is needed on all sides. Third countries want to know what will be the shape of the UK-EU trade relationship. #UKTrade

.@StevenBlockmans says that if 'living in sin', it'd be unclear for an importer to the UK what type of tariffs would apply, which legal regime, which quotas. @wstauk written evidence makes the point goo.gl/TkjQyD. #UKTrade

.@StevenBlockmans says the current negotiating mandate for EU Commission (to be agreed 29 Jan 18) suggests there will be roll-over & the UK can pencil in new arrangements during transition but not implement without EU permission. @SMerler says it's hard to speculate now. #UKTrade

.@GuillaumeVdLoo says the UK will need to comply with CCP and CET during transition; similar to Turkey, which complies with CET & follows EU’s FTA policy & tries to conclude FTAs with third countries. Third countries attempt trade deflection through the EU into Turkey. #UKTrade

.@StevenBlockmans tells us that if there isn’t roll over of EU FTAs, third countries might say that EU market has shrunk and therefore terms of their agreement with the EU has changed. #UKTrade

.@GuillaumeVdLoo says under the 'Guernsey Model', the UK would be considered a Member State for trade agreement purposes during transition. @StevenBlockmans notes this would make the UK like a crown dependency of the EU. @SMerler says this has legal implications for UK status.

.@GregHands tells us DfID and DIT jointly lead on EPAs; DExEU lead on agreements with EFTA, Turkey, San Marino and other European microstates; and the FCO lead on Association Agreements. #UKTrade

.@GregHands clarifies his retweet of @LORDMARKPRICE saying 'all have agreed rollover' regarding third countries to EU FTAs, saying 'we have agreement in principle', they all want to ensure continuity and we've progressed to a technical stage. #UKTrade

.@GregHands tells us that counterparties have their own ratification processes which vary. These can be quite intricate (e.g. St Vincent) and lengthy (e.g. South American agreement: Peru). #UKTrade

.@GregHands shares @ONS statistics: trade with third countries that have EU FTAs accounts for 12% of UK trade (£138bn p.a.) Including countries with agreements close to being finalised, this is 14% of UK trade (£160bn p.a.). #UKTrade

.@GregHands says DIT hasn’t chosen to prioritise any of the 70 countries the EU has FTAs with; whilst some have more monetary value, there are other important factors, such as foreign policy and development. #UKTrade

.@GregHands says there's a whole-of-government approach: DIT is leading on trade agreements but DfID, DExEU and FCO are also involved. @DavidDavisMP & @LiamFox meet weekly. Greg Hands meets @WalkerWorcester regularly. DIT & DExEU have sectoral joint working groups. #UKTrade

A @BuzzFeedUK article suggests the Government wants the EU, as part of post-Brexit transitional arrangements, to allow for third country agreements to apply as if the UK were still a Member State goo.gl/peQptM. @GregHands was unable to respond. @AlbertoNardelli #UKTrade

.@GregHands says academic studies show free trade agreements adds 32% to trade volumes, so not all of the 12% of trade covered by EU FTAs is at risk if they’re not rolled over. #UKTrade

.@GregHands tells us he's not a mercantilist but South Koreans have a trade in goods surplus with us. Would they risk the whole agreement to pursue an advantage like this? DIT will renegotiate an entirely new agreement in future.
#UKTrade

.@GregHands says @tradegovuk doesn’t have the capacity to renegotiate 40+ trade agreements now. #UKTrade

.@GregHands says the PEM Convention is a matter for DExEU to negotiate with the EU. Dispute resolution, e.g. ICS within CETA, is a matter for future trade policy. #UKTrade

Did you miss us questioning @GregHands, Minister of State for Trade Policy, as well as asking @GuillaumeVdLoo, @SMerler and @StevenBlockmans about the continuing application of EU trade agreements after #Brexit? Watch our evidence session at goo.gl/JpP5ir #UKTrade