Brexit : Trade Governance and Legal Implications for Third Countries
While precise impact of Brexit on the EU/UK trade and investment agreements with third countries will depend primarily on the terms of the withdrawal agreement to be concluded between them, most scenarios suggest an extensive process of amendment o...
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| Language: | English en_US |
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World Bank, Washington, DC
2017
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| Online Access: | http://documents.worldbank.org/curated/en/705891490038471881/Brexit-trade-governance-and-legal-implications-for-third-countries http://hdl.handle.net/10986/26351 |
| Summary: | While precise impact of Brexit on the
EU/UK trade and investment agreements with third countries
will depend primarily on the terms of the withdrawal
agreement to be concluded between them, most scenarios
suggest an extensive process of amendment of the text and/or
commitments in multilateral and bilateral agreements. At the
multilateral level, the UK will remain a WTO Member, but
will no longer be represented by the EU. The separation of
the UK obligations from the current EU lists of concessions
and schedules of commitments will require amendments that,
particularly regarding subsidies and quotas, may lead to a
broader renegotiation process requiring consensus of all
interested WTO members. At the bilateral level, the status
of current EU PTAs with regard to the UK and its trading
partners remains uncertain: Some elements suggest that these
PTAs may no longer be valid for the UK, or that, even if
legally valid, they will no longer cover the relationship
between the UK and the third country. Further, EU agreements
focusing on goods only will no longer apply to the UK. For
these agreements to continue to apply, the UK and the third
country will need to amend some aspects of the text of the
agreement as well as of the lists of commitments. Investment
treaties concluded by the UK with third countries will
remain valid, and no amendment is in principle necessary.
Parties could require amendments to the text of the treaty,
due to a fundamental change in circumstances. LDCs and
developing countries who benefit from the EU GSP will
continue under this regime for the remaining EU member, but
that GSP framework will no longer be applicable to the UK.
The UK may introduce a new GSP regime of its own. In all
cases, third countries who consider that Brexit has
diminished the value of their negotiated commitments have
the opportunity to request compensation in sectoral
commitments or changes in the text of the agreements, or
ultimately terminate the agreement The process of amending
the trade and investment agreements requires comprehensive
knowledge of their trade and investment flows with the EU
and the UK. |
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