Britain's Free Trade Agreement is Difficult to Step on "Stepping on" January 17 22:15

The departure from the EU near the end of this month. After its withdrawal, the UK will enter a “transitional period” to maintain its relationship with the current EU = European Union to mitigate catastrophic change. The transition period is less than a year by the end of December. During this time, the United Kingdom must enter into a free trade agreement with the EU. If the two sides cannot agree within the time frame, the situation will be the same as the so-called "withdrawal without agreement", where tariffs etc. suddenly recover and confusion occurs.

The Prime Minister of the United Kingdom, Johnson, does not intend to extend the transition period, but it is said that negotiations in less than a year can be difficult. Why is it so difficult?

In the past, we asked Mr. Atsushi Yokota, a former diplomat, who served as Japan's chief negotiator for negotiations on the conclusion of an agreement between Japan and the EU. (Nana Yamada, International Affairs Reporter)

Withdrawal invalidated necessity of new agreement

To date, the United Kingdom has joined the EU's "Customs Union" and "Single Market" and has enjoyed a situation in which trade in the region is free of tariffs and people, capital and services can travel freely in principle.

However, withdrawing from the EU will void the agreement with the EU that has made these possible. In addition, the EU will be excluded from the framework of trade agreements with the United States and Japan.

Therefore, if the UK wants to maintain the current free trade and investment environment, it must sign new trade agreements not only with the EU, but also with the United States and Japan.

Does it take a long time before negotiations start?

Free trade agreements are agreements to promote trade and investment liberalization by reducing tariffs and eliminating investment regulations between specific countries and regions. It is said that negotiations for such an agreement will take several years.

Atsushi Yokota "In the case of the economic partnership agreement with the EU that I was in charge of, it took about three and a half years before the negotiations started. For example, in the case of automobiles, in Japan, automobile tariffs were already zero. The EU has refused to negotiate, saying, "Only we are required to reduce tariffs and there is nothing concessional to the Japanese side." The EU said in a discussion that if it could not reduce automobile tariffs, it would raise non-tariff barriers. The Japanese side said earlier that Japan would not enter into negotiations without some degree of deregulation, so there was such an exchange before the negotiations began. is"

It cannot be simply compared with the past trade negotiations, but in the case of the economic partnership agreement with Mr. E, which Yokota was in charge of negotiating, it took nearly five years from the official start of the negotiations to the conclusion. .

The negotiation itself takes time

Furthermore, the negotiation itself takes time.

Mr. Yokota says, “In any negotiations, if you drink all of the other party's statements, it will come to an conclusion. It's possible, of course, it will take time to negotiate to balance the agreement. "

Choose the EU or the United States

It is not clear at this time how the UK-EU negotiations for a free trade agreement will evolve. However, Mr. Yokota believes that negotiations will be difficult. One of the reasons is that the United Kingdom is trying to negotiate a free trade agreement with the United States separately from the EU.

Jun Yokota: "We see this negotiation as a" stepping stone "negotiation for Britain. If Britain would accept EU requests more and more, it would be difficult to negotiate with the United States. Conversely, if the UK only accepts the United States' demands to enter into a free trade agreement with the United States as soon as possible, it will be difficult to negotiate with the EU this time. "

"For example, there is a problem with the handling of chlorinated chicken, which has already been an issue between the UK and the EU. In the United States, chicken is washed with chlorine to prevent the growth of bacteria, but in the EU this is It is subject to import restrictions because it is harmful to the human body, and it is likely that the United States will first ask the UK to accept it. The EU wouldn't look good. "

After the interview

The more I listen to Mr. Yokota, the more I realized that putting together a free trade agreement by the end of December is like threading a needle. If the deal is not settled within the transition period, customs and customs procedures will be re-established immediately after the end of the period, resulting in the same situation as a "withdrawal without agreement."

Asked Yokota what the UK and the EU would need to conclude the negotiations, and said, "It is painful to each other, such as the loss of trade opportunities from a completely free relationship. If it is gone, we may make a deal. "

Japan is not alone in negotiating free trade after the secession. After the withdrawal from the EU, it will not be possible to keep an eye on what kind of negotiations the UK will take with the EU and other countries.

International Department Reporter
Nana Yamada Joined in 2009 After working in Nagasaki, Chiba, and Economic Departments, currently in charge of the United States and Europe in the International Department