The Trade Deals Around The World - November Edition
Trade Deals Around the World is our periodic update, which gives you a quick and easy overview of what has been happening in the many trade deal negotiations worldwide.
We focus on the European Union and the United Kingdom and watch China and the United States.
The United Kingdom and New Zealand
The United Kingdom and New Zeald have concluded negotiations on a free trade agreement.
On 20 October 2021, New Zealand and the UK reached agreement on the key elements of a new high quality, comprehensive and progressive free trade agreement (FTA).
Despite the deal having limited immediate economic value due to NZ’s relatively small population, the government stressed the post-Brexit measure will make it “significantly” easier for British businesses to sell services to the Oceanic country.
The United Kingdom and Saudi Arabia
The United Kingdom has started negotiating a trade deal with Saudi Arabia.
Negotiations for a pact between Britain and the Gulf Cooperation Council, whose members also include Qatar, Bahrain and Oman, aim to start in 2022 following a 14-week consultation with the public and businesses, the U.K.’s Department for International Trade said in a statement.
The United Kingdom and Greece
The agreement, known as the the UK-Greece Strategic Bilateral Framework, is the culmination of an already strong bond shared by the two countries. Both the UK and Greece hope to combine their efforts as NATO allies to strengthen Europe’s security against foreign threats.
The framework also allows for deals to be made through out various sectors, including defence, foreign policy, health, trade and investment, education, tourism and maritime affairs.
The United Kingdom and the European Union
There’s troubled water flowing through the English Channel. The relationship between the United Kingdom and the European Union is far from what it should be. Part of the problem has to do with fishing rights, and part has to do with Northern Ireland.
The dispute centres on the issuance of licences to fish in Britain's territorial waters six to 12 nautical miles off its shores, as well as the seas off the coast of Jersey, a Crown Dependency in the Channel. read more
Paris is angered by London's refusal to grant what it considers the full number of licences due to French fishing boats.
Britain said last month it was open to further discussion with the boats it had rejected, adding that they had not submitted evidence of their history of operating in the waters which was needed to continue fishing in the 6-12 nautical mile zone.
The European Commission last week presented new proposals but has not swayed British negotiators.
The main sticking point is the role of the European Court of Justice. The EU says it should keep an oversight role in trade disputes related to Northern Ireland. London wants the EU to replace it with an arbitration system similar to those in other international trade deals.
“Our position remains unchanged: the role of the European Court of Justice in resolving disputes between the U.K. and EU must end," the U.K. government source said.
The European Union could weigh terminating the post-Brexit trade deal if the U.K. government pulls out of its commitments over Northern Ireland, according to people familiar with the matter.
British Prime Minister Boris Johnson has threatened to unilaterally suspend parts of the Northern Ireland Protocol, which governs trade between the province and the rest of the U.K., using the powers granted in Article 16 of the pact. European officials have been discussing the need to prepare a powerful response.
The European Union and Australia
Negotiations seemed to be moving forward despite the cancellation of a large order for submarines with France’s Naval Group. Now it seems this is negatively impacting the negotiations.
In solidarity with France, European Commission President Ursula von der Leyen questioned whether the bloc could strike a trade deal with Australia.
The new development comes just weeks after Tehan told Reuters he expected to finalise a free trade agreement with the EU by the end of next year.
Australia has sought to mend relations with the EU and France in recent weeks, appointing a senior aide to Prime Minister Scott Morrison as envoy to the 27-nation bloc.
The European Union and Asean
Asean is set to resume free trade agreement (FTA) talks with the EU after negotiations were suspended since 2009.
The EU started negotiations with Asean on a FTA in 2007. After negotiations were suspended in 2009, the EU decided to pursue bilateral trade agreements with nations.
Six Asean members have begun talks on bilateral FTAs with the EU: Singapore and Malaysia in 2010; Vietnam in 2012; Thailand in 2013; the Philippines in 2015; and Indonesia in 2016. FTAs are in effect with Singapore and Vietnam, ratified in November 2019 and August 2020, respectively.
Negotiations are continuing with Indonesia, while talks are on hold with Malaysia, the Philippines and Thailand.
China and the United States
For those that want to read up on the China - Unites States trade deal:
- Biden’s top trade advisor will say China isn’t complying with phase 1 deal reached under Trump, according to sources
- China presses U.S. to cancel tariffs in test of bilateral engagement
- China’s Response to U.S. Trade Talks Shows Gap Between Two
- U.S. trade chief Tai seeks talks with China, won't rule out new tariff actions
- U.S. Trade Chief to Engage With China on Trump-Deal Shortfalls
Other Interesting Articles and News on Trade Agreements
- Taiwan questions China's suitability for Pacific trade pact, fears 'obstruction'
- G-7 countries reach breakthrough on digital trade and data
- Japan foreign minister calls for U.S. to join CPTPP
- S. Korea, Philippines strike free trade deal
- Korea, Philippines strike free trade deal
- Cambodia to sign its draft free trade deal with S. Korea today
- Iran-Syria free trade agreement to take effect soon