The UK and EU could soon be signing a declaration committing to “free and open trade” as part of a wider “new strategic partnership”.
Politico has seen a leak of the declaration, dated 25 April, which references both sides’ ambitions of “maintaining global economic stability”.
It is thought that a version of the document could be officially published around the time of the UK-EU ‘reset’ summit next month.
Out of the ‘tunnel’
As well as agreements on defence and security issues, the Guardian reports that the UK and EU will point to areas of “common understanding” which will form part of negotiations on post-Brexit trade due later this year.
European officials will be briefing EU ambassadors tomorrow on these areas of shared interest.
These same officials have been recently working with British counterparts in the final-stage of negotiations on the draft declaration – a phase that is often called the “tunnel”.
US context
Next month’s summit comes against the backdrop of the global trade war that’s been initiated by US president Donald Trump.
The UK, which can negotiate with the US independently following its departure from the EU, has been in talks with the Trump administration over a deal that would reduce at least some of the tariffs that have been introduced on its exports to the US.
While the UK received the lower 10% baseline tariff rate on most of its goods, it is hoping to reduce some of the higher rates of 25% duties on cars and steel.
The EU was originally given a 20% tariff on the majority of its exports, as well as the higher 25% duties on cars and steel, but had this reduced to 10% for the duration of a 90-day “pause” introduced earlier this month.
The UK-EU commitment to “free and open trade” could be seen as a rebuttal to the Trump administration’s policies, as could the draft declaration’s references to “unwavering support” for Ukraine, their backing of “multilateralism” and their reaffirmation of their shared “commitment to international development”.
Mobilising
Talks on a new defence pact have been ongoing for months, and it has been reported that the EU could allow the UK to join the Security Action for Europe (Safe) programme, which allows member countries to co-operate on defence procurement.
EU demands for a youth mobility scheme, giving 18-30 year olds an enhanced ability to move and work between the UK and EU, are also closer to being realised.
The UK and EU are nearing a consensus whereby young people could be permitted one-year visas in each other’s territories, with a “one in, one out” quota system implemented.
Pivotal summit
The Chartered Institute of Export & International Trade will be previewing next month’s pivotal summit, which is due to take place on 19 May, at a free LinkedIn Live event on 14 May.
Fergus McReynolds, the Chartered Institute’s director for Europe and international, who will be speaking at the LinkedIn Live event, said:
“Traders in both the EU and UK would welcome the common commitment to open and free trade.
“At the very heart of the Chartered Institute’s mission is the drive to empower global trade and promote open, free and frictionless trade between partners. In an increasingly challenging environment for global trade, this common commitment should not be underestimated.”
Members of the Chartered Institute will also be able to hear from McReynolds at an exclusive post-summit webinar on 20 May.
