In its trade negotiations with the EU, the UK has called for flexible rules of origin and, in particular, ambitious rules on accumulation, but so far the EU has not been sensitive. That could change if negotiations continue over the summer, which is why the UK should move the issue forward. The UK should also consider joining the pan-European Convention on Rules of Origin – this standard treaty allows the accumulation and contributions of the 20 signatories, including the EU and Turkey, which can be taken into account in local content thresholds in their respective free trade agreements. Turkey`s customs union with the EU binds Ankara when it comes to negotiating a new deal with Britain. While Turkey is able to negotiate its own trade agreements and, in areas outside its customs union with the EU, such as services and agriculture, it has its hands free when it comes to removing tariffs on industrial products (Turkey`s largest export sector), relations between Turkey and the UK must be in line with EU-UK relations. This means that if the EU and the UK fail to reach an agreement before the end of the year, tariffs will apply to products from the UK to Turkey and, theoretically, between Turkey and the UK. Holger Hestermeyer, a trade law expert at King`s College London, has advised the government to stop hypnotizing roll-over agreements as breakthroughs that would bring additional economic benefits and to move forward in advance on the trade-offs that would be imposed by new trade agreements on British businesses and consumers in areas such as food standards. However, Alan Winters of the UK Trade Policy Observatory at the University of Sussex warned that some of them were not a complete equivalent substitute because they do not replicate agreements to avoid “rules of origin” controls on imports and various mutual recognition agreements (MRA). While the UK`s discussions with Brussels for an agreement with our main trading partner are attracting the most attention, the government has only 50 days to sign free trade agreements with countries like Mexico, Singapore and Canada to replace those who would otherwise lose access on December 31. Most business leaders believe continuity is more important than new trade agreements When Britain and Turkey enter into a free trade agreement to increase bilateral trade to $15 billion by 2023, Metro expands our freight services to and from the region.
“DIT did a good job with the commercial continuation program, but the only task was to get what we already had. These are continuity agreements, they are not about opening up new possibilities,” he said. Even for sectors that buy much of their intermediate consumption in the field, rules of origin can create difficulties. For example, EU free trade agreements often contain difficult criteria of origin for exported textiles.