EU and International update

EU  

3 months since an agreement was reached on the EU-UK TCA, it is set to be ratified by the European Parliament next week, bringing the agreement legally into force. With this, the UK government’s focus will move on to getting the governance structures of the TCA up and running. The TCA is governed by a complex overarching governance structure, headed up by a Partnership Council and consisting of 23 specialised committees, responsible for TCA oversight, amendment, and dispute settlement. Despite the TCA having been in force since January, these structures are yet to have been formally set up – representatives still need to be appointed and schedules and sequencing still need to be negotiated and agreed on by both sides. 

Without these structures in operation, there have been no official mechanisms to monitor how businesses from both the UK and EU have adjusted to the TCA. The CBI will continue to engage with officials on both sides of the Channel to ensure that they work together to set up these governance structures and ensure there are clear mechanisms through which businesses can engage and monitor how the TCA is operating as soon as possible. 

In Northern Ireland, there continues to be a positive tone following recent meetings between Lord Frost and Maroš Šefčovič. Both sides have agreed to seek solutions through the architecture set up within the Withdrawal Agreement, working towards full compliance on the Protocol with clear endpoints and a means to measure progress. Progress is expected to continue over the coming weeks, with talks set to continue, but both sides are clear that there are still a number of hurdles to overcome. The CBI will be meeting with Šefčovič’s team in April to ensure that our members voice are heard on each of these issues.  

The SME Brexit Support Fund is open 

The government fund that can grant SMEs up to £2000 to help businesses with training or professional advice on changes to UK-EU trade, including on customs, software and importing and exporting. Applications are now open and will close on 30th June 2021. 

Read more for further information on how to apply. 

Brexit transition helplines for Business 

The government has produced a list of the main transition-related helplines covering a range of issues, from customs procedures and tariffs to data and labelling.  

Rest of World  

B7 Summit around the corner 

CBI is hosting the B7 between 10-12 May 2021. The two-day B7 Summit will be preceded by a CEO summit the day before. The two events will bring together global business leaders, key international stakeholders and UK Ministers. Focusing on global economic recovery, key international issues and shaping a safe, inclusive and prosperous future. Keep your eyes peeled on My CBI for a B7 explainer which will provide further guidance and detail on the events. 

Launch of the Comprehensive and Progressive Trans-Pacific Partnership agreement (CPTPP) negotiation objectives 

The Department for International Trade (DIT) is likely to launch the UK negotiation objectives for the CPTPP in late May. The agreement itself is generally non-contentious but does contain a few provisions in areas like Intellectual Property, where carveouts will be needed to safeguard UK industry interests. The CBI has been conveying this message to DIT ministers over the last few weeks. After a series of member consultations, CBI will also be publishing a short report to coincide with the launch of the negotiation objectives. This will feature challenges and opportunities identified for members in the UK joining the CPTPP. The short report will be made available on My CBI.  

UK-Mexico and Canada trade deals to be renegotiated   

The government will be opening UK-Mexico and Canada continuity trade deals for renegotiation, in accordance with the terms of continuity agreements. The CBI will be looking for member views on where to go further than EU terms of trade. It is likely that government will be calling for business input in May, as Whitehall looks to set the mandate over the summer and the launch of negotiations likely to come in Autumn. With Canada, a new comprehensive agreement could include strong environmental and fossil fuel obligations, an SME chapter and greater attention to devolved authority at the provincial level. With Mexico there is plenty that the UK could model after the EU-Mexico modernised deal, such as greater procurement access, new digital trade terms, protection of agricultural labels, and lower tariffs on consumer products.