Canada asked to both help and negotiate with U.K. amid 1st-ever Commonwealth trade talks - Action News
Home WebMail Tuesday, November 26, 2024, 06:03 PM | Calgary | -5.3°C | Regions Advertise Login | Our platform is in maintenance mode. Some URLs may not be available. |
Politics

Canada asked to both help and negotiate with U.K. amid 1st-ever Commonwealth trade talks

The United Kingdom is turning to its Commonwealth partners as it prepares to withdraw from the European Union and do something it hasn't done in decades: negotiate its own trade deals. What role will Canada play?

Trade minister's office says formal negotiations would be 'premature' before terms of EU exit known

Prime Minister Theresa May's government is set to signal the U.K.'s wish to withdraw from the EU by the end of the month. Two years of tough negotiations are expected before that happens, and the British hope their Commonwealth friends will back them up. (Matt Dunham/Associated Press)

The United Kingdom isturning to traditionalpartnerslike Canada for help as it prepares to withdraw from the European Union anddo something it hasn't donein decades: negotiateits own trade deals.

A first-ever Commonwealth trade ministers meetingnext week in Londoncouldkick off negotiations tobolsterthe British economy once it leaves the privileged EU zone.

Trade collaboration across the Commonwealth has been "a dream from Thatcher onwards," University of Cambridge trade law expert LorandBartelssaid and now a possiblealternative to the EU.

Could it be more than a dream?

If Canada wants to avoid losing its largest European trading partner, it couldsoon find itself haggling across the table inpost-Brexittalks.

International Trade Minister Franois-Philippe Champagnewill attend theinaugural meetingof an expected30 trade ministers March 9 and 10 in London. Business leaders will be there too.

TheCommonwealth has never focused on formal trade co-ordination. The British didn't used to be keen.

But research prepared in 2015 when Malta hosted the heads of government meeting suggested thatshared language, values, institutions, and legal and regulatory systems make trade between Commonwealth countries19 per cent cheaper for businesses.

The U.K. hosts next, in 2018. As its Conservative government prepares to leavethe EU, it'sfinding the Commonwealth more important than ever.

'There's no way'

Brexiteersmuse about the potential of free trade across theCommonwealth.

Bartels calls the idea "insane" and "completely stupid."

"There are too many countries [52]with too many different interests," he said. "There's no way that you could possibly have a free trade agreement that would satisfy them all.

"There's a reason why this hasn't happened before."

The British House of Commons voted in favour of a bill authorizing the start of European Union exit talks last month. It's unclear what this will mean for Canada's newly ratified trade deal with the EU. (Associated Press)

There areplenty of other things to talk about, too. Just as the U.K.'s entry into the EU zone disadvantaged traditional trading partners, some will lose again when it leaves.

Take Caribbean countries, which export goods for intermediate processing in the U.K. before enteringthe EU.

"They're going to get totally screwed," Bartels said. The U.K. is under pressure to get the EU to preserve this kind of access.

Canada might hope to grandfatheras much of its newly ratified Comprehensive Economic and Trade Agreementas possible so it still applies to a post-Brexit U.K.The EU may not agree.

British need help

British Prime Minister Theresa May intends to servenotice of the U.K.'s withdrawal from the EUbefore the end of this month. Her government is scrambling to prepare,and it knows it needs help.

A headhunter is scouting for achief negotiator. The Guardian newspaper reported last month that the salary on offer is more than the prime minister gets paid. Other postings are up for moretrade lawyers, atmore modest salaries.

Last week, Greg Hands, theminister responsible fortrade and investment, invited Commonwealth tradenegotiatorsto spend time in the U.K. on secondment. A New Zealand expert is confirmed, with more help from Australia and Canada to follow, he said.

But Champagne's office doesn't make this sound imminent.

"We have significant trade negotiations expertise that are in demand right now,but nothing has been concluded in terms of secondment," JosephPickerillwrote to CBC News.

International Trade Minister Francois-Philippe Champagne will join other Commonwealth trade ministers in London next week to explore new ways of collaborating among historic partners. (Adrian Wyld/Canadian Press)

There's already a full plate in front of Champagne's team, including critical renegotiationsonthe North American Free Trade Agreement (NAFTA.)

Bringing home Britscurrently working in Brussels maymake more sense.

"Canada doesn't want to lose their top people and the British I don't think would be able to fully trustthem,"saidBartels.

While the U.K. is unlikely to use foreign negotiators at the table, conflicts of interest could arise even when offering advice.

Torn between divorcing partners

Then there's the fact that like Canada, Australia and New Zealandare bound up in their own deal makingwith the EU.

"I'm pretty sure the instructions in Brussels are: don't talk to [the U.K.]or it's offwith us,"Bartelssaid.

Bilateral negotiations between the U.K. andCanada would be"premature"before the terms ofBrexitare determined, Champagne's spokespersonsaid.

Former trade ministerChrystia Freelandsuggestedthe same thinglate last year.

It hasnot gone unnoticed that Canada isn't putting all its eggs in one basket, saidAllieRenison, head of Europe and trade policy for the U.K.'s Institute of Directors.

The British business leaders the IoDrepresentssay by a margin of 5-1 that the U.K.'s negotiations with the EU are more important than negotiating other new deals.

"Canada has struck a balanced approach," she said.

New forum for progress?

Beyond the U.K.,Canada sharestrade ambitionswith other Commonwealth countries.

Five are fellow signatories to the Trans-Pacific Partnership Australia, Brunei, Malaysia, New Zealand and Singapore.

The TPP won't proceed in its current form, thanks to thedeparture of the United States. Talkslater this month in Chilewill grapple withwhat happens next.

Champagne's ministerial mandate letter alsotalked aboutdeepening trade ties with India.

But what India maywant from Commonwealth talks is exactly what the U.K.'s current government may oppose: worker mobility.

Renison suggests some kind of commitment on worker visas or other voluntary standards may be more realistic outcomes from next week's talks than a full-blown trade deal.