Clash Over Brexit Trade Rules: Bloomberg

The United Kingdom severed ties with the European Union, with current rules to remain in place until the end of 2020. The leaders have 11 months to develop new trade rules: The EU expects the UK to abide by strict rules to prevent unfair competition while Johnson insists the UK will “prosper mightily” even if the negotiations fail. He suggested the EU could provide a deal similar to the one with Canada while pointing out that Australia doesn’t have a formal trade deal with the EU. “After three years of bad-tempered talks and last-minute breakthroughs over the U.K.’s political withdrawal, early signs indicate that the parties could struggle to avoid a cliff-edge when it comes to agreeing their future trading arrangement,” reports Bloomberg. Johnson called for “structured” withdrawal of operating rights under a so-called “equivalence” regime. He also questioned state aid and subsidies. The UK also rejects ith the European Court of Justice having any role over British laws. In turn, Michael Barnier, EU negotiator, said a deal such as Canada’s trade agreement would require consistency from the UK and “commitments to ensure a level playing field in areas such as taxation, labor rules and environmental standards.” Bloomberg reports the Canadian deal removes tariffs on 98 percent of goods, opens government contracts to each other’s companies and protects intellectual property. – YaleGlobal