Why is entering into multiple procurement-related free trade agreements problematic?

by Albert Sanchez-Graells, Professor of Economic Law and Co-Director of the Centre for Global Law and Innovation

Banana stem cross section. Photo Credit: Ian Jacobs

Post-Brexit, the UK has been repositioning itself in the global trade scene. Focusing on trade-related public procurement liberalisation, the first two moves for the UK were: one, to join the World Trade Agreement Government Procurement Agreement (GPA), of which it had been a member via the EU, and two, to enter into a comprehensive procurement chapter with the EU in the EU-UK Trade and Cooperation Agreement (TCA). As a result of these two moves, the UK largely consolidated the pre-Brexit status quo and ensured continuity in market access for UK suppliers abroad, as well as foreign suppliers in the UK.

The next move is now for the UK to expand procurement-related trade liberalisation via free trade agreements (FTAs), of which it has signed one with Australia and another with New Zealand. The UK is also seeking accession to other multilateral FTAs covering procurement, such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). Interestingly, both Australia and New Zealand are parties to the GPA and to the CPTPP, so the UK is about to create a triple layer of regulation of procurement liberalisation with these two countries, as all relevant procurement exercises will be subjected to the GPA, the CPTPP and the FTAs. Is this a problematic strategy? (more…)

Toward a ‘Global Britain’: The post-Brexit landscape

By Dr Clair Gammage, Lecturer in Law (University of Bristol Law School).

In the Prime Minister’s speech of 17 January 2017, in which the Brexit trade negotiation strategy was announced, Theresa May was keen to reassure the world that a ‘Global Britain’ would rise from the ashes of the now infamous June referendum. Outlining twelve core objectives to be pursued in the process of withdrawal from the EU once Article 50 has been triggered, May revealed little substantive detail about what the UK wants from the EU and, indeed, from the rest of the world. Underpinning the strategy is the first objective of “certainty” – certainty for industries, for workers, and for the general population. We now know that the European Communities Act will be repealed but EU law will be translated into the UK legal system. Of course, it is then the choice of Parliament to decide which laws stay and which laws go – presumably depending on the extent to which those laws reflect our Global British values according to the legislature. Will the first objective of “certainty” allay the fears of industry, the public sector, and the general population? The answer to this question rests entirely on the way in which the negotiations are handled from this moment on. So, what does the speech tell us in terms of the post-Brexit trading strategy?

There are two key aspects of the trade strategy going forward: withdrawal from the EU and a renegotiation of our terms with the EU; and, the UK’s trading relationship vis-à-vis the rest of the world which will take the form of WTO compatible free trade agreements (FTAs). FTAs are economic spaces in which the countries to the arrangement reduce tariffs on substantially all the trade that falls under the agreement but each individual member retains its own external tariff with other countries on those goods. The first and second limbs of the trade strategy are interrelated and once Article 50 has been triggered a new form of foreign policy-making that I have (rather tongue-in-cheek) coined “Global Britain external relations law” will begin to manifest. (more…)