The government will not be able to conclude a large number of
trade agreements at speed and maintain its much-prized regulatory
autonomy after Brexit, says a new Institute for Government
report.
Published today, Trade and Regulation after Brexit says
prospective trading partners are likely to tell the UK to change
its standards if it wants a trade deal.
The importance of trade deals as a ‘prize of Brexit’ makes the UK
particularly vulnerable to such pressure. But even though it is
now negotiating four new trade agreements and 18 ‘rollovers’ of
existing EU deals (not to mention a comprehensive agreement with
the EU itself), the government still lacks a firmly agreed
position on many of the issues it will face.
This weakens the government’s hand in talks with its partners,
and also sets it up for trouble at home. The continuing row over
‘chlorinated chicken’ highlights public concern about lowered
standards. Tensions between the governments in London and
Edinburgh over changes to food standards are high. At a time of
mounting strain on the Union, this is a situation the government
can ill afford.
The government has made an ‘unforced error’ in launching into
complex trade negotiations before it had established a domestic
regulatory approach. The new IfG report sets out how it should
correct this so as to maximise the benefits and minimise the
costs of its regulatory trade policy. The government should:
· Clarify its red lines: visible disagreement between government
departments on issues such as food standards can no longer be
tolerated.
· Set up stronger decision-making structures internally: more
authority below the top level of government, with greater
involvement from arm’s-length regulators, would allow issues to
be resolved more efficiently.
· Allow parliament greater powers of scrutiny: negotiators will
benefit from being able to point to difficult stakeholders back
home.
· Adopt a more co-operative approach with the devolved
administrations: the government must avoid a showdown between it
and, in particular, Edinburgh.
James Kane, IfG associate and author of the report, said:
“The UK’s domestic regulatory system is internationally
recognised as excellent. But the government risks compromising it
by rushing into trade negotiations unprepared. It should resolve
this as soon as possible.”
Maddy Thimont Jack, IfG senior researcher, added:
“Three years ago we warned that the government had not set up the
necessary structures for effective decision making on key trade
policy issues. The government did not heed that warning then, but
it now needs to move urgently to put them in place. Otherwise it
will find itself losing control of trade and regulatory policy to
better prepared partners.”
ENDS
Notes to editors
1. The full report is attached
