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FROSTY THE NO MAN
1. There's a mystery surrounding the Level Playing Field (LPF) provisions within the trade negotiation between the UK & EU.
No-one knows what's going off. It appears the EU have changed position on their LPF requirements but the text isn't available.
FROSTY THE NO MAN
1. There's a mystery surrounding the Level Playing Field (LPF) provisions within the trade negotiation between the UK & EU.
No-one knows what's going off. It appears the EU have changed position on their LPF requirements but the text isn't available.
2. I'm starting to wonder if we've made a move to force the EU to back off with their LPF demands?
I've failed to see why we'd want to regress on employment standards as we're well ahead of the basic standards set by the EU.
I've failed to see why we'd want to regress on employment standards as we're well ahead of the basic standards set by the EU.
3. State aid, we heard, was an issue but seemed to be resolved a few weeks back.
Which leaves environmental standards as the obvious sticking point.
Which leaves environmental standards as the obvious sticking point.
4. We've recently committed to reduce greenhouse gas emissions by 68% (compared to 1990 emissions) by 2030. And to reach net zero by 2050.
5. So have we asked the EU to match our climate commitment & they've backed off? Keeping in mind that if a trading partner breaches the standards set out in a trade agreement, the other party can retaliate with sanctions, notably tariffs.
6. I'm certain some of the developing countries within the EU (E. bloc & probably Germany due to industrial output) would struggle to meet those standards.
Have we replayed an old game & brought about a stalemate to force the EU to retreat on LPF?
Have we replayed an old game & brought about a stalemate to force the EU to retreat on LPF?
7. It appears the EU were lagging behind on environmental & labour standards a few years ago & probably wouldn't have been able to meet the United States standards at the point when TTIP (US/EU trade agreement) was contemplated.
8. David Frost was involved in those negotiations, so will be familiar with the issues raised.
So I'm starting to think the UK's climate commitments have been used to make the EU retreat on other LPF demands or alternatively for protectionist purposes.
So I'm starting to think the UK's climate commitments have been used to make the EU retreat on other LPF demands or alternatively for protectionist purposes.
9. Something has put the wind up the EU.
In terms of LPF provisions it's quite obvious placing demands for environmental improvement on 27 countries is an onerous ask.
In terms of LPF provisions it's quite obvious placing demands for environmental improvement on 27 countries is an onerous ask.
10. We know Germany has just invested in a new gas pipeline, Nord Stream 2, supplying natural gas from Russia. The pipeline has already been the subject of US sanctions on the basis it gives Russia too much leverage over Europe.
11. And as natural gas is a fossil fuel, it seems unlikely the EU member states are planning any major new climate change commitments in the near future.
Have we raised the bar in order for it to be dropped significantly by the EU in terms of 'ratchet clauses'?
Have we raised the bar in order for it to be dropped significantly by the EU in terms of 'ratchet clauses'?
12. How does that lot sound to those of you with an interest in the trade negotiations & the mystery around LPF provisions?
Am I on the right track or way off?
Am I on the right track or way off?
13. So in a nutshell:
a) UK would have no problems matching EU's standards on employment, but
b) EU member states would have great difficulty in matching the greenhouse emissions target we've set for 2030.
a) UK would have no problems matching EU's standards on employment, but
b) EU member states would have great difficulty in matching the greenhouse emissions target we've set for 2030.
14. Here VDL cites 55% as the EU target, 13% short of UK's: https://twitter.com/vonderleyen/status/1337785096330485762
15. It would appear we've no intention of following EU's state aid rules which are more restrictive than the WTO's. Draft legislation removes all retained EU law on state aid.
