Brexit worsens the situation on both sides

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Hello, Brussels. The biggest problem in town is still the issue of vaccine patents, and the EU will decide what to say at the major health summit in Rome at the end of next week. There will be more information on this before the meeting next week.

The main question today is, as the UK announces what it intends to do with Brexit freely, whether its departure from the European Union will lead to better trade policies across the Taiwan Strait.

Concession waters Break down the final outcome of all semiconductor chips currently in such a shortage.

We hope to hear from you.Send any ideas to [email protected] Or email me [email protected]

Britain’s entry into the European Union loses creative tension

When Brexit finally took place in January, “getting off” was a general interaction between the UK and the EU. To be fair, in some areas, you can reasonably think that Brexit will create opportunities-the UK’s vaccination plan is somewhat smart, or the EU will concentrate more fiscal power. This is a measure that the UK generally opposes joining the EU.

But in trade? no. In our view, if you think that the EU or the UK have better trade or regulatory policies due to Brexit, then you are despicable, ignorant or protectionist. Let us explain.

From the perspective of the United Kingdom, although there is a lot of evidence that it has now taken this year and months to pretend to be trying to pretend that the “Global Britain” trade policy makes sense On the opposite side.

As for regulatory freedom, the government plan proposed in the Queen’s speech this week to expand the new and more relaxed system of public procurement and state aid is probably a practice that the United Kingdom can repeat. Roaring victory Purchase personal protective equipment for the pandemic. But our bet is that in the end, due to the World Trade Organization’s (WTO) procurement commitments and the trade and cooperation agreement with the EU on subsidies, there will be no major changes.And, despite the constant repeat, But the UK cannot create one Freeport Project Within the European Union.

The British government’s request to industry and farmers regarding the EU regulations they want to cancel has generally received “not many” answers. Business wants continuity, Not a revolution. The company is asking Touch Chemical regulationsHowever, this seems to be mainly due to the higher bureaucratic costs of running an independent regulatory system, rather than the complete abolition of rules.The ministers reluctantly refused to agree, even if it was temporary and easily revoked transaction Adopt the European Union Sanitary and Phytosanitary Standards Although there is no sign that British consumers, farmers or companies have severely resisted this agreement, it is in order to ease the border friction in the Irish Sea. (Look Trade link How can the UK and the EU manage the post-Brexit relationship more constructively? )

In January, when the government got excited Temporary authorization Neonicotinoids are said to be pesticides banned by EU regulations.But when they happen Don’t need Because they intend to kill aphids on sugar beets: this year’s frost made this work possible.In any case, France also has an emergency Neonicotine authorization From the European Union.

It is foreseeable that one area where there will be substantial differences in the future is financial services. In this regard, different regulatory concepts may be different. Push away the rules over time.However, it should be noted that the first place of departure for the UK is Tighten bank capital rules, Don’t let go of them.

Yes, but can EU trade policy making sure to get rid of clumsy member states? Yes, but we think it usually pushes things in the right direction.The EU has lost a large amount of free trade heavyweights, and the direction of policy is now usually Turn inward, It was thrown into chaos just because of crude industrial mercantilism, which plunged its investment agreement with China into chaos.Dutch Claimed for a while It will occupy the limelight of liberals, but once promulgated, domestic political resistance to trade agreements will soon appear. Joint paper Discuss with France to impose new obstacles on the EU market.

From a trivial point of view, Britain’s departure may make it easier for the EU to reach an agreement. Trade agreement with IndiaTaking into account the spiritual tariff issues with Scotch whisky producers in the past are very big. But in any case, the possibility of reaching any substantive agreement with India is very small: if we miss the signing ceremony, we will not cancel the holiday. Moreover, if the European Union seriously considers establishing extensive trade and security, geopolitical, digital and infrastructure relations with New Delhi, then Britain’s defense and intelligence capabilities and more enlightened views on data governance will emerge. Come in handy.British Own ambition Indian transactions will be stimulated by the relatively small market size.

We also do not believe that parallel negotiations between the EU and the UK on bilateral agreements with Australia and New Zealand will not improve the quality of these two agreements. This is more likely to mean sacrificing speed so that one of the compliant British newspapers of Liz Truss, the British Secretary of Trade, can run their increasingly lively “Brexit Superwoman Truss, ready to move Reports such as “China is armed for trading”. (One Actual title, Incidentally).

The absence of conflict does not mean that the policy will be improved. We firmly believe that one of the best combinations of architects in the history of the European Union is the British Prime Minister Margaret Thatcher and the French European Commission President Jacques Delors who ended in mutual hatred. The single market and social conditions. Keep pace with it.Paul Simon and Art Garfunkel are increasingly unable to stand together Either, but they work together Defeat their hell solo.

You may ask, why trade secrets are worried about the fact of non-Brexit. This is a reasonable question. Answer: From the perspective of the United Kingdom, it can tell us interesting facts about sovereign restrictions in the world today, in which the regulatory system has network effects and strong gravitational pull. From the perspective of the EU, this reminds us that good trade policies usually involve accommodating internal opposition from acrimonious free traders, but do not want them to disappear.

We will look at any signs with a fair and balanced perspective, showing that Brexit is not a negative game, at least from the perspective of free traders. This game is hurting both parties. However, so far, we have hardly seen any information suggesting that we were wrong.

Chartered waters

The shortage of semiconductors in the automotive industry has been widely reported. Indeed, this morning “Nikkei Asia” had an interesting report on the Chinese manufacturer BYD. Plan to go public ($, subscription required) its semiconductor subsidiary. However, how many devices are actually used in the world’s cars? According to data from the Semiconductor Industry Association, this proportion has just exceeded 10%.

This is a large number, but it’s dwarfed by the proportion of devices that are ultimately used in laptops and mobile phones.This may explain why TSMC Priority order For companies like Apple during the pandemic. Claire Jones

Trade ties

More development Vaccine Intellectual Property Story: owned by a Canadian company Applied to A kind Rarely used mechanism in WTO rules In order to manufacture vaccines for export to developing countries (in this case, Bolivia), patent rights will be exceeded. As the story develops, we will continue to pay attention. Spanish Prime Minister Pedro Sánchez (Pedro Sánchez) not yet Following Paris and Berlin, Replaced by Madrid Provisional exemption from U.S. Trade Representative Katherine Tai (Katherine Tai).Nowadays Pungent intervention The CEO of Roche, a Swiss pharmaceutical company, calmly and without exaggeration equated the overwhelming nature of patents with East German communism nationalizes drugmakers.

In recent years, two more constructive trade associations in Europe, namely the British Council of Directors and the Swedish Enterprise Confederation, have come together and have some thoughts on how to establish trade associations. Britain after Brexit-EU (Especially the UK and Sweden) relationship work. In our opinion, it is more constructive than most of what we have seen from the EU and British Here.

For China’s Tesla (and even other foreign automakers), the more bad news is.The country’s cyberspace administration has Published (Nikkei, $) Significantly improve the draft rule Restrict the types of car data Companies can transcend national boundaries. If passed, it will mean that Beijing will exercise greater control over a key factor in the competitiveness of foreign competitors.

Martin Arnold and Valentina Romei Interesting reading Study how to exempt tariffs Post-Brexit merchandise trade between the UK and Germany Damaged the bottom line of the enterprise.

We are late but This London Book Review section container shipping, Provided by John Lanchester, is a torn yarn. ($)
Alan Beattie and Claire Jones

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