Showing posts with label innovation. Show all posts
Showing posts with label innovation. Show all posts

Wednesday, 1 September 2021

Brexit Briefing - August 2021

British forces on their way to Kabul to assist with the evacuation
Author Ministry of Defence Licence OGL v 3  Source Wikimedia Commons

 









Jane Lambert

August was the month the government might have expected some positives from brexit.  An aircraft carrier strike group steamed through the South China Sea for the first time since 1968 when Denis Healey withdrew British forces from their bases east of Suez.  Business Secretary Kwasi Kwarteng published plans for the UK to become a science and technology superpower in 9 years time (see UK Innovation Strategy 12 Aug 2021 NIPC Inventors Club). Culture Secretary Oliver Dowden promised "a world-leading data regime" by "forging new global partnerships and designing our own common sense data laws" (see Dowden's Data Protection Plans 27 Aug 2021 NIPC Data Protection).

None of those announcements was noticed because attention has focused on the rapid collapse of a régime in defence of which 454 British service personnel lost their lives.  What will be remembered long after the fleet has returned to its base will be the emergency parliamentary debate on Afghanistan and, in particular, the words of the former Prime Minister:  "Where is global Britain on the streets of Kabul?" MPs and peers had harsh words for the United States and its government in that debate.  The US government gave as good as it got by inferring that the UK authorities were partly to blame for the casualties of the terrorist attack by insisting on keeping the Abbey Gate open.

There have been tensions and spats between the US and UK in the past as Philip Stephens noted in his article, Kabul retreat leaves the UK on a bridge to nowhere (26 Aug 2021 Financial Times).  These have been forgotten and forgiven as the UK stayed close to the only giant in Liliput.  But the decision of the last two presidents to withdraw from Afghanistan come what may has made that giant appear old and feeble, especially in contrast to the vigorous, youthful giant that is emerging in Asia.  The Chinese government's newspaper, Global Times, was not slow to question the strength of the US  commitment to Taiwan in the light of the evacuation from Kabul.  Aspiring to be Greece to America's Rome may have made sense during the pax Americana.   With the legions in retreat, it is much less easy to justify.

Although there are no immediate signs of it happening, August may be the month in which the British public begins to rediscover the advantages of collaborating with its neighbours.  When the Prime Minister argued in Parliament that the UK had no choice but to accept the American withdrawal, at least one MP asked why the government did not explore the possibility of working with other NATO allies to ensure an orderly withdrawal of nationals if not the continuation of the mission.  It is already clear that several of the UK's neighbours have overtaken the UK and other English speaking countries in vaccinating their citizens,  Also, none of them is suffering the distribution difficulties caused by the shortage of  HGV drivers with the ending of free movement of labour.   No amount of free trade agreements with countries on the other side of the world will solve those problems but closer cooperation with the EU might.

Anyone wishing to discuss this article may call me on 020 7404 5252 during office hours or send me a message through my contact form.

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. 

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Musée de l'Élysée ,   Lausanne, World's First Photographic Museum Author Sandro Senn   Licence CC BY-SA 3.0   Source Wikimedia Commo...