Trade Policy
The United Kingdom is an open economy. In the world, it is the eight largest exporter of goods (£ 191 billion in 2004) and second largest exporter of services (£ 96 billion in 2004).
What's new
I. Economic Partnership Agreements (EPAs)
On 10 December the European General Affairs and External Relations Council met and, by Qualified Majority, adopted the Economic Partnership Agreement Regulation. This Regulation formalises the market access offer of 100% duty free quota free market access to the European Union with improved rules of origin for African, Caribbean and Pacific (ACP) countries that have signed WTO-compatible agreements.
II. BERR launches consultation on implementation on EU services directive
The Services Directive aims to make it easier for businesses both to set up in other Member States of the EU and to provide services cross-borders or on a temporary basis.
III. DFID and BERR: New Trade Policy Unit
The Department for International Development and BERR have joined forces in the new Trade Policy Unit (TPU) which went live on 15 October 2007. The unit was formed in response to Gordon Brown's call for a better alignment between the UK's aid and trade policies. The TPU will bring together trade and development experts to ensure UK competitiveness and market access, fight for better deals for poorer countries and for better support for those wishing to trade themselves out of poverty. It will bridge the two departments, tapping into the best skills, networks and resources available to promote this agenda at home, internationally and through activities in partner countries
Key Trade Issues
Agriculture
Anti dumping, Subsidy and Safeguards
Trade Defence Instruments - EU Green Paper
Cat & Dog Fur
Competition
Environment
E-Commerce
Industrial Tariffs
Intellectual Property
Investment
Market Access
Market Access Consultation
Procurement
Rules of Origin
Services (GATS)
Technical Barriers to Trade
Trade Facilitation
Trade and Gender
Trade and Labour
WTO Accessions
WTO DisputesTrade Policies
I. Trade and Gender
In many countries men and women have different roles to play in the economy and in society so international, national and regional trade policy initiatives can have different repercussions on both sexes. Because of this the UK Government is committed to reducing overall levels of global poverty and achieving the Millennium Development goals, some of which are gender specific.Members of the Europe and World Trade Directorate work together with other Government Departments in considering various aspects in which trade policy can impact on gender, and inputting into international events to raise awareness of the issue. The Department of Trade and Industry (DTI), with support from the Women's National Commission, sponsored a Gender Expert Group on Trade (GEGT) to help mainstream gender issues into UK/EU trade policy, and to increase the understanding of the gender aspects of trade. This trade issue is trying to bring attention to the many issues of gender including equal rights between men and women.
II. Trade and Labor
"The 1998 ILO Declaration on Fundamental Principles and Rights at Work covers internationally agreed "core labour standards" on freedom of association and the right to collective bargaining, the elimination of discrimination in employment and the elimination of forced and child labour. Under the Declaration, all Member States are obliged to respect, promote and realise these rights whether or not they have ratified the related ILO Conventions." Many countries are trying to bring in the labor standards to the WTO. The argument has been that trade sanctions should be used as a way of pressurising countries to comply with internationally agreed labour standards, which would protect workers from exploitation.
Common Commercial Policy (CCP)
The United Kingdom, as part of its membership of the European Community, has agreed to join with other Member States in a customs union with common arrangements for imports from and exports to third counties. These common arrangements are decided, discussed, agreed and administered through the Community's 'Common Commercial Policy' (CCP).The CCP establishes principles between all twenty-five Member States governing EU Trade Policy. This includes changes in tariff rates, the conclusion of tariff and trade agreements with non member countries, uniformity in trade liberalization measures, export policy and instruments to protect trade such as anti-dumping measures and subsidies. For example, by maintaining the Common External Tariff, any product entering the Community will be subject to the same tariff rate whether it enters through a port in Italy, in Portugal or in the UK.
Regional Trade Agreements (RTAs)
According to the WTO, regionalism is viewed as `actions by governments to liberalize or facilitate trade on a regional basis, sometimes through free-trade areas or customs unions'. A trading arrangement among a subset of countries in which members trade on preferential terms with discriminatory removal of trade barriers among themselves broadly describes an Regional Trade Agreement (RTA). RTAs usually begin with tariff preferences but often extend into services, intellectual property rights, government procurement and other areas. These may take the form of:
Free trade areas - where reciprocal preferences for goods or services are exchanged but members retain their own tariff rates
Customs unions - where a common external tariff is implemented in addition to the exchange of reciprocal preferences
Asymmetrical agreements - where preferences are not strictly reciprocal, for example one party may be allowed longer than another to implement certain goods or services preferences
The North American Free Trade Area (NAFTA) is an example of a free trade area, the European Communities (EC) is an example of a customs union and many EC Association Agreements (such as those with North African countries) are examples of asymmetrical agreements.
Trade Policy Consultative Forum (TPCF)
The TPCF group meets regularly to discuss trade related issues, and brings together Non Governmental Organizations such as development charities, business associations, trade unions and consumer groups.
UK Bilateral Trade Relations
I. The Commonwealth
53 independent countries make up an association that is referred to as the Commonwealth. They represent one third of the world population which come to around 1.8 billion citizens. This diverse membership represents a broad range of faiths, races, cultures and traditions from all regions. It accounts for 20% of world trade and makes up about 40% of the WTO membership. The Commonwealth creates an environment for all of its members to join together in promoting international understanding and world peace. Through the Commonwealth, the UK hopes to implement a stronger system of world trade, which benefits countries at all stages of development in order to eradicate poverty. The Commonwealth Secretariat, established in 1965, is the main intergovernmental agency of the Commonwealth. It is located at Marlborough House in London.
Source: +http://www.thecommonwealth.org/+
II. US Trade Relations
The EU and the US have the two larges global economies with each being the other's largest market. Their trade amounts to more than £300 billion a year. Over 5000 US companies are based in the UK, along with 10,000 companies spread across the whole of the EU.
Some elements of the Plan will be pursued through cooperative actions (such as improved regulatory cooperation, cooperation among scientists, identification of priority sectors for the removal of obstacles, coordination of EU and US positions in international organizations). In other cases action will take the form of trade negotiations. Finally, the Plan also addresses the general organizational arrangements needed to realize the Transatlantic Economic Partnership by the actions identified in the present Plan.
III. EU and Canada
The EU and Canada enjoy a long-standing bilateral trading relationship. The EU is Canada's second largest trading partner (after the US), with two-way trade exceeding £26 billion in 2001. The desire to deepen and broaden trade relations between the EU and Canada led to the agreement of an EU Canada Action Plan and to the development of the EU-Canada Trade Initiative (ECTI). Under the EU Canada Action Plan four areas will be focused on: economic and trade realtions, foreign policy and security issues, transnational issues and fostering links. ECTI is intended to build upon the bilateral and multilateral trading relationships between the EU and Canada.
IV. The Asia and Pacific Regions
The UK conducts bilateral trade talks with a number of Asia Pacific countries and territories on an ad hoc basis. The countries that have been the subject of such talks in the recent past are Australia, New Zealand, China, Taiwan, Malaysia, and Korea.
What to Expect in the Future
• (24 Sept 2007) Donated £200,000 to the WTO Trade Facilitation Needs Assessment trust fund.
-Fifth donor to this fund
-Program asses developing countries trade facilitation needs
• Trade facilitation: controls and procedures that would help goods move across national boarders that can reduce costs and burdens. Promotes efficiency.
• UK Ambassador Nick Thorne stated "The UK is strongly supportive of developing countries' efforts to strengthen their trade capacity and take best advantage of trading opportunities. We will carry on assisting them so that they can better benefit from the multilateral trading system. Trade is a major lever for development."
Source: +http://ec.europa.eu/external_relations/us/economic_partnership/trans_econ_partner_11_98.htm+
Source: +http://www.dti.gov.uk/index.html+