From the Start of Trade Negotiations, Strong Tactics Expected in UK-EU... Fierce "No Concessions"

[Image source=Reuters Yonhap News]

[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] As the United Kingdom and the European Union (EU) have parted ways, UK Prime Minister Boris Johnson and the EU have signaled a tough stance in upcoming trade negotiations. While the EU insists that access to the single market is only possible by complying with regulations, Prime Minister Johnson is standing firm, stating that the UK cannot follow those regulations.

According to BBC and other media on the 2nd (local time), Johnson is expected to outline his position on future trade agreement negotiations with the EU in a speech on the 3rd. Foreign media predict that Johnson will take a hardline stance, showing no intention to make concessions to the EU. The UK officially left the EU on the 31st of last month, and during the transition period set to last until the end of the year, both sides will conduct negotiations on future relations, including trade agreements.

The UK government plans to base its future negotiations with the EU primarily on the Comprehensive Economic and Trade Agreement (CETA), a free trade agreement (FTA) between the EU and Canada. CETA applies zero tariffs to most goods except agricultural products. There is no need to comply with EU regulations. However, most services are excluded, and non-tariff barriers such as extensive customs checks may arise.

The UK government also considers the Australian FTA model with the EU, which is less stringent than CETA, as a possible scenario if the EU continues to insist on regulatory compliance as a negotiation condition. The Australian model involves both sides selecting which economic sectors to agree on, while applying World Trade Organization (WTO) rules to the rest. A UK government official said, "There are two possible outcomes in future negotiations: a free trade agreement like Canada’s, or a looser agreement like Australia’s."

The EU recently stated that the UK must accept various EU regulations and standards, as well as the jurisdiction of the European Court of Justice (ECJ), in future trade agreement negotiations. On the same day Johnson announces his plans, Michel Barnier, the EU’s chief Brexit negotiator, is also expected to present the EU’s trade agreement negotiation plans with the UK. Since the EU requires unanimous approval from all 27 member states, full-scale negotiations are expected to begin in March.

This content was produced with the assistance of AI translation services.