Uk Trade Agreement China
The UK and THE EU are negotiating a trade deal that is expected to start on 1 January 2021, when the new UK-EU relationship will begin. While free trade agreements are aimed at boosting trade, too many cheap imports could threaten a country`s producers, which could affect employment. The British Chamber of Commerce in China (BCCC) has called on the UK government to prioritise trade negotiations with China and work towards a bilateral free trade agreement as the world continues its fight against the COVID 19 pandemic and Britain tries to develop a post-Brexit economic strategy. However, this provides the UK with an opportunity to think carefully about what it wants from such an agreement – and, equally importantly, that it might be compatible with future trade plans with the US and THE EU. The country may soon be forced to make difficult decisions. Viscount Younger opposed the measures for the government and said, „This would touch the heart of the separation of powers in the British constitutional system and allow the Supreme Court to thwart trade agreements concluded by the government and ratified after parliamentary review.“ The initiative for a free trade agreement between China and the United Kingdom (FTA) took place when the BCCC published its 2020 position paper on British companies in China in Beijing on Tuesday. At present, the government appears to be focusing on a trade agreement with the United States, with its potential effects on the pricing of NHS drugs or chlorinated chicken. But the United States has another priority: to slow the growth of the Chinese economy as much as possible, especially in areas such as technology. The new trade agreement between the United States, Canada and Mexico has a „poison pill“ clause that would allow the United States to withdraw if one of the other two countries signs a trade agreement with a „non-market“ economy such as China. The United States is likely to seek a similar clause in an agreement between the United States and the United Kingdom. By 297 votes to 221, peers voted to withdraw a trade agreement in the event of serious human rights violations. Ministers` room for manoeuvre in signing trade agreements with governments that abuse human rights has been severely reduced after a double defeat in the House of Lords. Even if a trade agreement is reached, all new controls will not be removed, as the EU requires that certain products (such as food) from third countries be checked.
Businesses need to be prepared. If the UK were to act in accordance with WTO rules, tariffs would apply to most of the products that British companies send to the EU. This would make British goods more expensive and more difficult to sell in Europe. The UK could also do so for EU products if it so wishes. The UK government is also conducting trade negotiations with countries that do not currently have trade agreements with the EU, such as the United States, Australia and New Zealand. Nevertheless, interest in the possibility of a major British trade deal with Beijing has resumed as Britain prepares to leave the EU. Days after the 2016 referendum, future Brexit secretary David Davis said that „trade deals with the US and China alone will give us a trade area almost twice as big as the EU.“