Category Archives: United Kingdom

Text of UK-CARIFORUM EPA Published

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Alicia Nicholls

The text of the United Kingdom-CARIFORUM Economic Partnership Agreement (UK-CARIFORUM EPA) has finally been published online. Whether you are a trade policy nerd or simply a business person concerned about the continuity of trade preferences between the UK-CARIFORUM countries post-Brexit, you would be forgiven for anxiously awaiting the release of the text.

Brexit Day (which was to have been March 29, 2019) has passed and the UK remains an EU member and no closer to any certainty regarding its future trading relationship with the EU-27 post-Brexit.  The UK government has requested a further extension to June 30, 2019 in hopes of getting British MPs to back the Draft Withdrawal Agreement which they rejected three times already.

Brexit chaos aside, on March 22, 2019, it was announced that the UK and CARIFORUM countries had signed a trade continuity agreement called the UK-CARIFORUM Economic Partnership Agreement which would preserve the preferences between the UK and CARIFORUM currently under the CARIFORUM-EU EPA. The CARIFORUM-EU EPA has been provisionally applied since 2008.

This means that CARIFORUM is one of the handful of trading partners with which the UK has managed to so far conclude trade continuity agreements. The UK is the most important trading partner in the EU for CARIFORUM countries and CARIFORUM leaders quickly recognised the need to ensure the continuity of trading conditions post-Brexit between the UK and CARIFORUM States.

The UK-CARIFORUM EPA was signed by the UK and nine CARIFORUM States (Barbados, Belize, The Commonwealth of Dominica, Grenada, The Republic of Guyana, Jamaica, St. Christopher & Nevis, St Lucia and St Vincent and the Grenadines) on March 22, 2019. Trinidad & Tobago signed on April 1, 2019, while the remaining CARIFORUM States have indicated they will sign shortly.

As it currently stands, UK-CARIFORUM trading relations remain governed by the CARIFORUM-EU EPA, and the UK-CARIFORUM EPA is only expected to take effect once the CARIFORUM-EU EPA no longer applies to the UK. For it to enter into force, ratification will be needed by each of the parties. The Agreement’s utility stems from the fact that it ensures the continuity of preferential trading relations between the UK and CARIFORUM States once the UK leaves the EU, particularly in the case of a no-deal Brexit.

The UK-CARIFORUM Economic Partnership Agreement replicates the provisions of the CARIFORUM-EU EPA to the extent possible, including its development cooperation provisions. It also establishes a Joint CARIFORUM-UK Council with responsibility for implementing the Agreement, as well as a CARIFORUM-UK Trade and Development Committee. For further information, please feel free to read my commentary on it here: UK-CARIFORUM Economic Partnership Agreement: What does it all mean?

The text of the UK-CARIFORUM Economic Partnership Agreement may now be found  online here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

 

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‘Brexit Plan B’: Key Points from PM May’s Speech

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Alicia Nicholls

After suffering a historic and crushing rejection  of her Draft Withdrawal deal in the House of Commons and barely surviving a no confidence vote brought by the Leader of the Opposition last week, United Kingdom (UK) Prime Minister Theresa May today outlined her ‘Brexit Plan B’ in the House of Commons.

Prime Minister May is in the unenviable position of having to formulate an alternative Brexit Plan which secures the support of MPs of diverging views on the way forward for Brexit, and which would be palatable to the EU. All the while the clock continues to tick on the UK’s scheduled departure from the EU on March 29, 2019, now less than seventy days away. In an effort to break the Brexit impasse, Mrs. May has been holding talks with leaders of the major parties in Parliament.

Prime Minister May noted that in light of Parliament’s overwhelming rejection of the current withdrawal agreement, it was clear that the Government’s approach had to change. But has it?

Here are the key points from Prime Minister May’s address:

  1. While the Prime Minister noted that a ‘no deal’ Brexit should be avoided, she did not explicitly rule it out as an option. Labour Leader, Jeremy Corbyn, has indicated he would not participate in talks with the Prime Minister, unless the ‘no deal’ option is off the table.
  2. Prime Minister May, however, explicitly ruled out the revocation of Article 50 of the Treaty on European Union (TEU) as an option, saying doing this would go against the referendum result of June 23, 2016.
  3. Prime Minister May also ruled out seeking an extension of Article 50 of the TEU, doubting that the EU-27 would agree to any such extension.
  4. She again stated her opposition to a second referendum saying it would set a dangerous precedent for how referendums are handled in the UK. She noted that it would also require an extension of Article 50 and could damage social cohesion in the UK by undermining faith in their democracy. She also doubted there was a majority in the House for a second referendum.
  5. She has promised a more ‘flexible, open and inclusive’ approach in how her Government engages Parliament in the negotiation of the UK’s future partnership with the EU. The Government will consult the Parliament on its negotiating mandate for the next phase of negotiations.
  6. She also promised a more consultative approach, and greater engagement with the devolved administrations, elected representatives in Northern Ireland and regional representatives in England, businesses, civil society and trade unions.
  7. She emphasized that the UK’s exit from the EU should not erode the UK’s protection for environment standards or workers rights and that they would support the proposed amendment to the meaningful vote that Parliament should be able to consider any changes in these areas made by the EU.
  8.  In perhaps the only major policy change of note, Prime Minister May noted that her Government will scrap the £65 fee for EU nationals resident in the UK to register to remain in the UK following Brexit. Those who apply in the pilot phase will have their fees reimbursed. She recommitted to EU nationals resident in the UK continuing to access benefits in the UK both in a deal and no deal scenario.
  9. With regard to the controversial Irish backstop option in the current Withdrawal Agreement, Prime Minister May vaguely noted that her Government will work to identify how they could ensure that they respect the terms of the Belfast Agreement and their commitment to no hard border between Northern Ireland and the Republic of Ireland in such a way that commands the support of the parliament and the EU.

In substance, there was little difference between Prime Minister May’s Plan A and the Plan B outlined. Members of Parliament will vote on the Plan B on January 29, 2019, which would pretty much be the same as the Plan A which they so soundly rejected by 230 votes last week.

The next phase will be continued discussions between Mrs. May and MPs and other stakeholders, which would (or should) inform Mrs. May’s re-engagement with the EU on the way forward.  The uncertainty continues, but it appears that a ‘no deal Brexit’ is increasingly more likely. This also comes against the backdrop of the International Monetary Fund’s downward revision of its global growth forecast, warning today (and not for the first time) that a ‘no deal Brexit’ was a major risk for the global economy.

The text of Prime Minister May’s speech may be read here.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.

Brexit Withdrawal Agreement Overwhelmingly Rejected by British MPs

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Alicia Nicholls

With just over seventy days to go before the United Kingdom’s (UK) impending withdrawal from the European Union (EU) on March 29, 2019, British Members of Parliament (MPs) in the House of Commons voted overwhelmingly against the current Draft Withdrawal Agreement negotiated by Prime Minister Theresa May’s government. With only 202 MPs voting in favour and 432 voting against the deal, the 230 margin of defeat represents the worst legislative defeat inflicted on a British Government in modern history.

The vote, termed the ‘meaningful vote’, was highly anticipated. Originally scheduled for last December, Prime Minister May had postponed the vote at the last minute in the face of overwhelming opposition to the current deal, particularly the fall-back provisions on the Northern Ireland/Ireland Border – the so-called ‘backstop’. In the interim, Mrs. May unsuccessfully sought to obtain greater concessions from the EU in order to assuage skeptics, including those in her own party. However, the EU had been adamant that the  500-page Draft Withdrawal Agreement was not open for renegotiation.

Indeed, the reaction by the EU to the outcome has been swift. In a statement released immediately thereafter, President of the EU Commission, Jean Claude Juncker, lamented that “the risk of a disorderly withdrawal of the United Kingdom has increased with this evening’s vote.” President Juncker further reiterated that “the Withdrawal Agreement is a fair compromise and the best possible deal. It reduces the damage caused by Brexit for citizens and businesses across Europe. It is the only way to ensure an orderly withdrawal of the United Kingdom from the European Union.”

In her remarks after the outcome, Mrs. May lamented that the vote gave no indication of what the Parliament does support. She promised to continue her pursuit of Brexit as instructed by the British people in their referendum result of 2016. She has again ruled out a second referendum. However, her future appears to be in the balance. Labour leader, Jeremy Corbyn, who has called for a general election, has immediately tabled a motion of no confidence which will be debated tomorrow. In December, Mrs. May survived a no confidence motion within her own party.

Alicia Nicholls, B.Sc., M.Sc., LL.B., is an international trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @LicyLaw.