David Henig @davidheniguk
In which we find out about the progress of negotiating UK replacement trade agreements from foreign media. Not surprising that other countries will be wary of UK demands on rules of origin (to include EU), and this will be read with interest by others.
www.iol.co.za/business-report/economy/sacu-mozambique-fail-to-reach-agreement-to-cushion-brexit-impact-19955104
CAPE TOWN – Trade representatives of the Southern African Customs Union (Sacu), Mozambique and UK failed to reach an agreement on Friday on an Economic Partnership Agreement (EPA), which would have been a first step to prevent trade disruptions between the regions after Brexit.
Trade and Industry Minister Rob Davies said on Monday that the differences were “narrowed” in relation to timeframes for the continued recognition of sanitary and phytosanitary import requirements, with both parties acknowledging that market access for agricultural access is critical for Sacu and Mozambique.
Another issue still not resolved involved the terms of “cumulation,” which relates to certificates of origin required by exporters to both regions. The rules of origin exist to ensure the benefit of preferential access in terms of a free trade agreement, goes to the countries that are party to the agreement.
“The EPA does not provide for cumulation on the basis being advanced by the UK, namely full cumulation with EU material, especially when the.EU material is subjected to a higher duty when exported to Sacu and Mozambique, than when the material is exported from the UK. Sacu and Mozambique are unable to give any better treatment to the UK than the EU.”
And
He said if the UK somehow reaches a withdrawal agreement with the EU on the terms of Brexit, (its Parliament has already voted against it twice), all trade relations with the EU would remain in place until 2020, or until a bilateral agreement between Sacu and the UK is reached.
If Brexit is extended for another three months from March 29, “it gives us time to negotiate the EPA roll-over and for it to go through our Parliament, so if the UK leaves the EU without an agreement, we will have a bilateral agreement in place.”
In other words a roll over in the event of no deal, not possible at this time...