Thursday 17 June 2021

The Proposed Australia-UK Free Trade Agreement

Murray Grey Cattle in Australia

 









Jane Lambert

On 15 June 2021, the government announced that the British and Australian prime ministers had reached an agreement in principle on the terms of a free trade deal between the two countries (see the press release UK agrees historic trade deal with Australia 15 June 2021). The British government has not yet published those terms, possibly because the National Farmers Union's concerns over the terms of that deal had resonated with the public. Instead, the Department of International Trade has released a one-page leaflet described as "promotional material" and entitled Ten key benefits of the UK – Australia Free Trade Agreement. By contrast, the Australian government has published a summary of the terms of the agreement in Australia-UK FTA negotiations: agreement in principle on 15 June 2021.

According to the Australian government, the agreement will contain provisions on the following matters:

According to the British government, one of the benefits of the proposed agreement is that:
"The deal removes tariffs on £4.3bn of exports, making it cheaper to sell iconic products like cars, Scotch whisky and ceramics into Australia - supporting industries that employ 3.5 million people in the UK. Car makers in the Midlands and the North of England will benefit."

 That might be true of whisky and other luxury goods but it is less obvious how far the removal of Australian tariffs will improve the competitiveness of motor vehicles shipped halfway around the world.  The Chief Executive of the Society of Motor Manufacturers and Traders has welcomed the agreement with Australia but added:

"Given the integrated nature of the automotive industry, however, and the importance of proximity, we must also ensure smooth trade with markets closer to home."
The UK sold 20,000 cars to Australia in 2019, compared to 578,000 to the EU (see James Batchelor UK car makers demand smooth trade links ‘closer to home’ after Australia trade agreement 16 June 2021 CarDealer).  Even after the removal of those tariffs, motor manufacturers in Asia will continue to enjoy the advantages of lower labour and freight costs.

Having lost my rights to practise in the EU under Directive 77/249/EEC and Directive 98/5/EC, I was heartened by para 5 of the Ten Key Benefits of the FTA:
"UK Lawyers will be able to practice in Australia without having to requalify as an Australian lawyer."

The Australian government publication is more guarded: 

"legal services provisions which will both guarantee that UK and Australian lawyers can advise clients and provide arbitration, mediation and conciliation services in the other country's territory using their original qualifications and title, as well as establish and drive collaboration between regulators with the aim of addressing remaining barriers to practise as a local lawyer in the other country's territory."

Advantages of the proposed agreement that the government might have mentioned include provisions on copyright, design rights, patents, trade marks, geographical indications, artists resale rights, trade secrets and test data. These should not lead to higher medicine prices in either country. The Australian and British governments have also agreed to start a "strategic innovation dialogue" as a standing institution to support trade and economic growth through collaboration between the UK and Australia on innovation and associated trade matters, including regulatory approaches, commercialization of new technologies, and supply chain resilience.  They have also agreed to encourage the development and adoption of emerging technologies.

I shall return to this subject after the text of a draft agreement has been published.  Anyone wishing to discuss this topic may call me on  +44 (0)20 7404 5252 during office hours or send me a message through my contact form. 

Friday 4 June 2021

Brexit Briefing May 2021

Lord Frost
Author HM Government Licence OGL 3.0 Source Wikimedia

 















Jane Lambert

Save for differences over the Northern Ireland Protocol May has been a quiet month for exchanges between the British government and the European Commission. Businesses in the UK appear to be coming to terms with the consequences of third-country status.  The UK has appeared n its own right at the World Trade Organization and the Department for International Trade has announced details of the proposed trade agreement with Australia which has caused some consternation with British farmers,

At their meeting in Brussels on 16 April 2021,  European Commission Vice-President Maroš Šefčovič and Lord Frost, Minister of State at the Cabinet Office agreed to further engagement with business groups, civil society and other stakeholders in Northern Ireland, In accordance with that agreement, he met business and community representatives on a joint 2-day visit to the province with the Northern Irish Secretary.  He talked to representatives of the aerospace, manufacturing, food and drink, retail, and life sciences industries about the challenges those industries were facing.

Lord Frost released the following statement in relation to his visit:

"It’s clear from my visit that the Protocol is presenting significant challenges for many in Northern Ireland. Businesses have gone to extraordinary efforts to make the current requirements work, but it is hard to see that the way the Protocol is currently operating can be sustainable for long.

We’re committed to working through the issues with the EU urgently and in good faith. I hope they will take a common sense, risk-based approach that enables us to agree a pragmatic way forward that substantially eases the burdens on Northern Ireland.

Solutions must be found rapidly in order to protect the Belfast (Good Friday) Agreement in all its dimensions and to minimise disruption to the everyday lives of people in Northern Ireland - as the Protocol itself requires. As the Prime Minister has made clear, we will continue to consider all our options in meeting our overriding responsibility for sustaining the peace and prosperity of everyone in Northern Ireland."

A development that I forgot to mention in my last Brexit Briefing is that the Trade Bill is now law.  The new Trade Act 2021 consists of 19 sections divided into 5 Parts with 6 Schedules.  It provides machinery for the implementation of trade agreements and establishes a Trade Remedies Authority and a Trade and Agriculture Commission,   I will discuss this statute in a separate article in due course.

The UK's Permanent Representative to the WTO, Simon Manley, addressed the WTO Heads of Delegation for the first time during the Trade Negotiations Committee on 4 May 2021.  He has also delivered policy statements on TRIPS, COVID19 vaccines and other matters.   For the moment, HM Government is not inclined to follow the lead of the USA in responding to calls for a patent waiver in respect of COVID vaccines and treatments (see my article The Patent Waiver Debate 8 May 2021 NIPC Law).

Accession negotiations with the CPTPP (Comprehensive and Progressive Agreement for Trans-Pacific Partnership) have now been approved by the existing member states (see UK welcomes CPTPP nations’ invitation to begin accession 2 June 2021 DIT News Story).  One of the members of that partnership with which the Department has conducted advanced negotiations for a bilateral trade agreement is Australia. Among the proposals for that agreement is that Australian farm exports should enjoy tariff-free access to the British market after a period of adjustment.   This has precipitated calls from the National Farmers Union to stand up for farmers in Australia and NZ deals (see NFU joins calls for government to stand up for farmers in Australia and NZ deals 19 May 2021 NFU website).

Anyone wishing to discuss this article or any of the topics mentioned in it may call me on 020 7404 5252 during office hours or send me a message through my contact form at other times.

Milan steps into London's Shoes to host a Section of the Central Division of the UPC's Court of First Instance

Author Francesco Ungaro   Licence CCO 1.0 Deed   Source Wikimedia   Jane Lambert :  It is ironic that the government of one of the countries...