How agile Brexit Britain has surpassed the sluggish EU in trade.

I can guarantee REJOINERS WILL NOT LIKE THIS

For over 25 years, the EU has been like a persistent suitor trying to woo South America into a free trade agreement, but alas, they’ve been friend-zoned. Meanwhile, post-Brexit Britain waltzed into the Trans-Pacific trading bloc, CPTPP, and sealed the deal in just over two years — proving that sometimes it’s all about being in the right place at the right time, or maybe just having the right dance moves!

As French farmers protest on the streets, I look at the EU Commission’s appalling trade record

The European Union is facing significant challenges over its latest proposed trade agreement with five major South American countries, known as the Mercosur trade bloc. French farmers are particularly upset about this, and the new Prime Minister, Michel Barnier — known for his role in Brexit negotiations — has cautioned that France could face severe repercussions. In this report, we explore the extent of the EU Commission’s struggles.

The proposed agreement aims to create one of the largest free-trade zones in the world, potentially benefiting both regions through increased market access and economic cooperation. However, it has sparked considerable controversy within the EU, as stakeholders express concerns over environmental standards, agricultural competition, and economic sovereignty.

French farmers, in particular, fear that the influx of South American agricultural products could undermine their livelihoods by driving down prices and increasing competition. They argue that many of the agricultural practices in the Mercosur countries do not meet the stringent environmental and health standards upheld within the EU, raising concerns about food safety and sustainability.

Moreover, environmental groups have voiced their opposition, highlighting the potential for increased deforestation in the Amazon rainforest as a result of expanded agricultural activities to meet new trade demands. This has led to calls for stricter environmental safeguards and commitments to sustainable practices within the agreement.

Michel Barnier, leveraging his diplomatic experience, has been vocal about the need for balanced negotiations that protect the interests of all parties involved. He has emphasized that any trade agreement must ensure fair competition and uphold the EU’s environmental and social standards. Failure to address these issues could lead to political backlash and damage France’s agricultural sector, he warns.

The EU Commission is under pressure to navigate these complex dynamics and find a solution that satisfies both economic ambitions and the concerns of its member states. As negotiations continue, the outcome of this trade agreement will have significant implications for the EU’s trade policy and its relationships with global partners.

This report highlights the EU Commission’s poor performance over the past 25 years, contrasting it with the UK Department for International Trade’s agile and positive achievements, now known as the Department for Business and Trade. Additionally, I provide updates on British farmers protesting the Labour Government’s tax policies and the impending revolts by French farmers, who criticize Macron and Barnier for failing to protect their livelihoods.

Here are three examples of how post-Brexit Britain has outperformed the EU:

1. The UK’s successful entry into the Trans-Pacific Partnership (CPTPP).
2. The EU’s unsuccessful attempt to secure a Mercosur trade deal with South America.
3. The UK’s trade agreement with Australia contrasts with the EU’s inability to finalize a similar deal.

1, Brexit Britain swiftly secured a free trade agreement with a significant global trading bloc. On June 2, 2021, just five months after the UK officially exited the EU and its ‘Transition Period,’ the 11 countries of the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) agreed to invite the United Kingdom as the first non-founding member of their rapidly expanding trade alliance.

The International Trade Secretary at the time, and future Prime Minister, Liz Truss said:

“CPTTP membership is a huge opportunity for Britain. It will help shift our economic centre of gravity away from Europe towards faster-growing parts of the world, and deepen our access to massive consumer markets in the Asia-Pacific.

“We would get all the benefits of joining a high-standards free trade area, but without having to cede control of our borders, money or laws.”

- The Rt Hon Liz Truss, 02 June 2021

Three weeks after the CPTPP nations convened, negotiations commenced. These discussions were pivotal in shaping the future of international trade relations among member countries. Two years later, on July 16, 2023, Kemi Badenoch, who was the Business and Trade Secretary at the time and has since become the Conservative Party Leader, formally signed the accession treaty in New Zealand. This event marked a significant milestone, not only for the United Kingdom but also for the broader global trade community.

The signing ceremony was held in Wellington, where representatives from all member countries gathered to witness this historic moment. The accession treaty symbolized a commitment to strengthening economic ties and fostering cooperation in various sectors, including technology, agriculture, and services. It also opened new avenues for businesses and entrepreneurs, providing them with opportunities to expand their reach into international markets.

Kemi Badenoch’s role as a key negotiator was instrumental in ensuring that the terms of the treaty aligned with the UK’s economic interests. Her leadership and diplomatic skills were widely praised, as she navigated complex discussions and addressed concerns from different stakeholders. The successful conclusion of these negotiations was seen as a testament to her dedication and strategic vision.

In the aftermath of the signing, there was a sense of optimism among the member nations. The treaty was expected to enhance regional stability and promote sustainable economic growth. It also underscored the importance of collaboration in addressing global challenges such as climate change and digital transformation. As the UK embarked on this new chapter, it was clear that the accession to the CPTPP would play a crucial role in shaping its future trade policies and international relationships.

On 15 December — in just four weeks — this massive trade deal is scheduled to enter into force.

The EU also expressed an interest in joining the CPTPP but this has gone nowhere

On December 15, just four weeks away, this significant trade agreement is set to take effect. This agreement promises to reshape economic relationships and open new markets for the participating countries. It is expected to enhance trade by reducing tariffs, improving market access, and fostering economic cooperation among member nations.

Meanwhile, the European Union has expressed its interest in joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). This move could potentially expand the scope of the agreement, bringing in one of the world’s largest economic blocs. However, despite the EU’s interest, no tangible progress has been made toward its inclusion. Several factors, such as regulatory alignment, trade standards, and political negotiations, are likely contributing to the delay.

The potential inclusion of the EU in the CPTPP could lead to significant changes in global trade dynamics. It would not only strengthen the economic ties between Europe and the Asia-Pacific region but also create a more integrated global market. Businesses and policymakers are closely monitoring these developments, as they could have far-reaching implications for international trade and investment.

2. The stark contrast between nimble Brexit Britain and the sluggish EU
Picture the EU negotiating a free trade agreement with Mercosur in South America — like a tortoise trying to win a marathon. Meanwhile, Brexit Britain is sprinting ahead, dodging obstacles with the agility of a caffeinated squirrel.

UK’s efficient negotiations with the CPTPP bloc versus EU’s laborious negotiations with the Mercosur bloc

• EU (MERCOSUR) : 9,278 days
• UK (CPTPP) : 755 days

[Sources: EU Commission and the House of Commons Library.

1. The UK’s successful trade agreement with Australia contrasted with the EU’s inability to secure a similar deal.

2020. Just 18 months later, in December 2021, the two countries signed the FTA. This followed an ‘Agreement in Principle’ reached in June 2021, where the majority of the deal’s terms had already been settled.

Trade negotiators from the UK and Australia commenced the first round of discussions for a UK-Australia Free Trade Agreement (FTA) from June 29 to July 10, 2020. Just 18 months later, in December 2021, the two countries signed the FTA. This followed an ‘Agreement in Principle’ reached in June 2021, where the majority of the deal’s terms had already been settled.

The signing of the agreement marked a significant milestone in the trade relations between the UK and Australia, as it was one of the first major trade deals the UK secured post-Brexit. The agreement aims to eliminate tariffs on goods, enhance access to services, and create opportunities for businesses and consumers in both nations. It is expected to boost trade by billions of pounds, fostering economic growth and strengthening the bilateral relationship.

The negotiations were conducted virtually due to the COVID-19 pandemic, highlighting the dedication and adaptability of both countries to achieve a mutually beneficial outcome despite challenging circumstances. The deal includes provisions for digital trade, intellectual property, and sustainable development, reflecting modern trade priorities.

Moreover, the FTA is designed to benefit a wide range of sectors, including agriculture, automotive, and technology. For instance, UK farmers will gain greater access to the Australian market, while Australian wine producers will find it easier to export to the UK. The agreement also paves the way for increased collaboration in areas such as research and innovation.

Both governments have emphasized the importance of the FTA in promoting job creation and supporting economic recovery in the wake of the global pandemic. As the agreement comes into effect, businesses in both countries are preparing to seize new opportunities and navigate the evolving trade landscape. Ultimately, the UK-Australia Free Trade Agreement is poised to strengthen ties and enhance prosperity for both nations in the years to come.

International Trade Secretary Anne-Marie Trevelyan said:

“Our UK-Australia trade deal is a landmark moment in the historic and vital relationship between our two Commonwealth nations. This agreement is tailored to the UK’s strengths, and delivers for businesses, families, and consumers in every part of the UK — helping us to level up. We will continue to work together in addressing shared challenges in global trade, climate change and technological changes in the years ahead.

“Today we demonstrate what the UK can achieve as an agile, independent sovereign trading nation. This is just the start as we get on the front foot and seize the seismic opportunities that await us on the world stage.”

- The Rt Hon Anne-Marie Trevelyan, International Trade Secretary, 16 Dec 2021

On May 31, 2023, the Australian Prime Minister and the Minister for Trade and Tourism announced the historic commencement of the Australia-UK Free Trade Agreement. With its 32 chapters, this groundbreaking agreement addresses a wide array of issues, paving the way for the removal of most tariffs on trade between the UK and Australia, and fostering a new era of collaboration and prosperity.

UK’s efficient and successful negotiations with Australia versus the EU’s abject failure

• EU-Aus abortive trade negotiations: 1,946 days
• UK-Aus successful trade deal: 536 days

The agreement includes crucial provisions on trade in services, digital commerce, public procurement, and intellectual property. UK citizens under 35 will find it easier to travel and work in Australia. It also addresses technical trade barriers and sanitary and phytosanitary (SPS) measures concerning food safety and the health of animals and plants. Additionally, chapters focus on small businesses, environmental issues, and animal welfare.

In terms of trade in services, the agreement aims to reduce barriers and create more opportunities for service providers, enhancing cooperation in sectors such as finance, telecommunications, and professional services. This will foster a more competitive environment and encourage innovation and growth in both countries.

Digital commerce provisions are designed to facilitate the seamless flow of data across borders, ensuring that businesses can operate efficiently in the digital economy. This includes commitments to protect consumer privacy and cybersecurity, as well as measures to combat online fraud and enhance digital trade infrastructure.

Public procurement aspects of the agreement will open up new avenues for businesses from both nations to bid on government contracts, promoting transparency and fair competition. This will not only benefit companies but also improve the quality and cost-effectiveness of public projects.

The intellectual property chapter aims to strengthen the protection and enforcement of intellectual property rights, encouraging creativity and innovation. This includes provisions on copyrights, patents, trademarks, and geographical indications, ensuring that creators and inventors are adequately rewarded for their contributions.

For young UK citizens, the agreement simplifies visa processes and work permits, making it easier for them to explore career opportunities in Australia. This cultural and professional exchange will enrich both societies and contribute to a deeper understanding between the two nations.

Addressing technical trade barriers and SPS measures ensures that trade in agricultural and food products is safe and efficient. This involves harmonizing standards and regulations, reducing the risk of disputes, and ensuring that high levels of health and safety are maintained.

The focus on small businesses highlights the importance of supporting entrepreneurial ventures, which are vital to economic growth and job creation. The agreement includes initiatives to help small businesses access international markets and navigate the complexities of global trade.

Environmental issues are addressed with commitments to sustainable practices and cooperation on climate change initiatives. This includes promoting the use of clean technologies and renewable energy, as well as protecting biodiversity and ecosystems.

Animal welfare is also a key consideration, with provisions to ensure that trade and agricultural practices uphold high standards of care and treatment for animals. This reflects a shared commitment to ethical and humane practices in both countries.

Overall, the agreement represents a comprehensive effort to strengthen the economic and cultural ties between the UK and Australia, fostering a partnership that benefits both nations and sets a precedent for future international agreements.

The EU’s trade deal with Australia is currently facing significant challenges, and its future now appears uncertain. This breakdown in negotiations has created an uncomfortable situation for EU officials in Brussels, particularly as they had previously touted this potential agreement as a major accomplishment for European trade policy.

Discussions aimed at finalizing a trade agreement with Australia began over six years ago in 2018, making the recent collapse of these talks all the more frustrating for Australian officials and businesses alike. The prolonged nature of these negotiations raised expectations on both sides, and the failure to reach a consensus at this stage is a setback for those who hoped for stronger economic ties.

In late October of last year, reports surfaced detailing Australia’s dramatic withdrawal from the negotiations, driven by growing frustrations over what they perceived to be the EU Commission’s inflexible positions and unwillingness to compromise. This unexpected exit not only highlights the challenges of international trade negotiations but also reflects a broader sense of discontent that could affect future talks between the EU and other trade partners.

Scheduled discussions with European Union Commissioners were abruptly cancelled, signalling a troubling development in international negotiations. On October 29, 2023, Australia made the pivotal decision to withdraw from trade talks with the EU, a move that has raised alarm over the potential strains in their economic relationship. This decision marks a significant moment, as it was not the first time Australia had stepped back from these discussions; the country initially pulled out approximately three months earlier, indicating a pattern of disengagement.

The current stalemate is expected to last for a minimum of two years, during which neither party seems inclined to revisit the negotiations. This prolonged hiatus not only complicates future collaboration but also leaves unanswered questions about tariffs, trade agreements, and mutual market access, impacting businesses and consumers on both sides. As the hope for dialogue wanes, the landscape of international trade between Australia and the EU remains uncertain and fraught with challenges..

In a statement in the Japanese city of Osaka that night, the Australian Trade Minister Don Farrell said that no progress had been made after meeting EU Commissioner Valdis Dombrovskis on the fringes of the G7 Summit.

“I came to Osaka with the intention to finalise a free trade agreement. Unfortunately we have not been able to make progress. Negotiations will continue, and I am hopeful that one day we will sign a deal that benefits both Australia and our European friends.”

- Don Farrell, Australian Trade Minister, 29 Oct 2023

The Australians are frustrated as the EU Commissioners remain unwilling to compromise. It appears that no progress will be made for another two years. These negotiations began in 2018 when the EU was eager to demonstrate its prowess in trade deals, especially following the UK’s significant advancements in talks with other countries.

The EU seeks access to Australia’s valuable minerals, including lithium, while Australia is interested in the EU market for beef, lamb, and other produce. However, as of now, there seems to be no prospect of an agreement.

This stalemate highlights the complexities inherent in international trade negotiations, where each party must balance domestic interests with the potential benefits of foreign agreements. For the EU, securing a steady supply of lithium and other minerals is crucial, given the increasing demand for electric vehicles and renewable energy technologies. These resources are pivotal to the EU’s green transition plans, making access to them a strategic priority.

On the other hand, Australia views the EU as a lucrative market for its agricultural products. The country’s beef and lamb industries are significant contributors to its economy, and gaining a foothold in the European market could provide substantial economic benefits. However, the EU’s stringent regulations and protective measures for its own agricultural sector pose significant challenges.

Despite the current impasse, both sides have reasons to remain engaged in the dialogue. For Australia, diversifying its export markets is essential to reduce reliance on a few key partners. Similarly, the EU recognizes the importance of diversifying its supply chains to enhance economic resilience.

Political dynamics within both regions add another layer of complexity. In Australia, domestic industries and lobby groups exert pressure on the government to secure favorable terms. Meanwhile, within the EU, member states have varying priorities and concerns, making it challenging to reach a consensus on trade policies.

As the world continues to grapple with economic uncertainties and geopolitical shifts, the importance of strategic trade partnerships cannot be overstated. Both Australia and the EU must navigate these negotiations carefully, considering not only their immediate interests but also the long-term implications for their economic and political landscapes. While the road to an agreement may be fraught with challenges, the potential benefits make it a pursuit worth continuing.

Rejoiners have questions to answer

Extremist, anti-democratic Rejoiners are forever asking for ‘the benefits of Brexit’, no matter how many we research and publish. Well here’s another one. The UK does trade deals in two years or less, and the EU struggles in more than 25 years.

It must be said that the EU Commission’s performance in negotiating international trade agreements has been pitiful since it took over sole and exclusive responsibility for all trade relations outside the EU. Member states are forbidden to have any trade talks themselves. Even after the UK voted to leave, when the Commission suddenly woke up and ramped up its efforts, the results have been dismal.

Witness the collapse of the EU Australian trade deal October last year. Now we have another to add to the Commission’s long line of failures or desperately protracted and unsuccessful negotiations.

What is perhaps most embarrassing about these failures is that the Commission trumpets its supposed achievements loudly regularly, only for us to find subsequently that they were whistling in the (trade) winds. When it comes to the supposed deal with the Mercosur countries of Argentina, Bolivia, Brazil, Paraguay and Uruguay, (announced in 2019), it must be considered a scandal that not only have these talks lasted for more than 25 years, but there is still doubt about it, given the strong objection from France and to a certain extent from a few other EU countries. This is disinformation if ever we saw it.

I would love to see any Rejoiner try to address this point directly, without immediately trying to deflect onto a completely different subject.