UK-EU trade negotiations resumed at the last minute

UK-EU trade negotiations resumed at the last minute offense and defense October 31 4:55

Negotiations such as the free trade agreement between Britain and the EU-European Union were feared to break down due to deepening conflict, but negotiations resumed last week.

The actual deadline for negotiations is expected to be early next month, and the offense and defense are continuing at the last minute.

After the UK left the EU in January, the UK and the EU have entered a transition period to avoid rapid changes in society and are continuing negotiations on free trade agreements.

Negotiations were difficult due to the gap in positions regarding fishing rights and subsidies to companies, and the negotiations were threatened to break down in the middle of this month, but they resumed on the 22nd.

Regarding the progress of the negotiations, EU Chairman Von der Leyen said on the 29th, "Although there are good progress, there are still problems with fishing rights, etc.", reiterating the attitude of not making easy concessions. Did.

Meanwhile, British Prime Minister Johnson has been bullish, saying, "We will prepare in case we cannot agree."

However, both have already been hit hard by the new coronavirus restrictions and the infection is spreading again.

Under these circumstances, if an agreement is not signed, further economic turmoil is expected, so it seems that we really want to agree.

The transition period is until the end of the year, but considering the approval procedure in the parliament, the actual deadline for negotiations is expected to be until the beginning of next month, and the offense and defense are continuing at the last minute.

Negotiation Conflict in two respects

The difficulty in negotiations between the UK and the EU is mainly due to the fact that their claims are in direct conflict in two respects.

One is the issue of "fair competition."

If both sides conclude a free trade agreement and the UK relaxes various regulations such as working conditions, environmental standards, and subsidy rules for companies, British companies will be more competitive than companies in the EU. It will be.

The EU argues that the UK should comply with EU rules to ensure "fair competition".

Britain, on the other hand, believes that there is no point in leaving if it remains bound by EU rules, and opposes that "it is natural to be more competitive."

Another issue is the issue of fishing rights.

Until now, fishing in the waters of the United Kingdom was permitted by EU rules to other member states, but the United Kingdom is in a position that the previous rules will not be permitted after withdrawal.

However, the EU insists on fishing rights as before, saying that "the withdrawal of Britain is not what the EU wanted and the EU does not need to change the rules."

Impatience to recruit Japanese companies

Japanese companies, which have about 1,000 companies in the UK, are rushing to the situation where negotiations are not progressing.

In the UK, Nissan, Toyota, and Honda produce cars and export them to EU countries.

If the transition period ends without a free trade agreement, passenger cars will be subject to a 10% tariff from January next year.

The British Automobile Manufacturers Association, which is a member of Japanese manufacturers, said that if tariffs were to be imposed, the prices of cars sold in the EU would rise and demand would fall, and the British automobile industry would be hit by the new corona virus. I am complaining.

Anxiety extends beyond the automotive industry.

A Japanese fire alarm manufacturer that has been operating in the suburbs of London for half a century is based in the United Kingdom and is expanding its business throughout Europe, accounting for 60% of the total for the EU.

Without an agreement, fire alarms would be subject to tariffs of up to 7%, which could increase the burden on some large customers by millions of yen, and in the worst case, EU customers. You also run the risk of losing.

President Yoshiaki Kadokura said, "Similar to the case of withdrawal, it is frustrating that the future will not be decided even toward the end of this transition period. I can not decide what measures to take, so I have to wait earnestly. I want you to confirm it. "