Question:
Discuss about the position of United Kingdom and Principals for the Negotiation in order to secure the lowest possible disruption regarding availability of goods ensuring an orderly and smooth withdrawal of UK from the European Union.
The paper outlines the position of United Kingdom and principals for the negotiation in order to secure the lowest possible disruption regarding availability of goods ensuring an orderly and smooth withdrawal of UK from the European Union. The ambition of this paper is to secure an inclusive future agreement with European union. It advocates for a frictionless and freest trade in goods and services that will be beneficial for all.
The UK’s objective is to ensure an orderly exit from the EU without any disruption and to its citizens, investors and consumers. The UK aims to provide legal assurance and certainty that will be aided by the common regulatory systems of both the EU and the UK.
Both the UK and EU are in position to gain benefit from the longstanding and intimate trading relationship of services and goods. It is important that the business as well as the consumers gain confidence about the goods. The data has revealed that in 2016 the EU has been the largest market of the UK and the rest of the EU’s members have exported more goods to the country than any other nation. Therefore, the citizens are benefitted from this relationship and integrated regulatory system (Baldwin and Lopez?Gonzalez 2015). They comply with the product legislation that enable the safe product supply across the country. This includes cost reduction, variety improvement, flexible supply chains, patient benefits and innovated as well as high quality product. The consumers and the investors are ensured that the market authorities are engaged in market surveillance and have access to knowledge about the products.
The ambition of the UK is to engage in a sustainable future agreement with the European Union and secure a frictionless trade by ensuring that the products are marketed lawfully in the markets of both the EU and the UK (Ivona, Nova?ko and Ogrizovi? 2014). The UK’s suggestions on the customs and tariffs aim to build a deep and special relationship with the EU. This encourages a smooth exit process related to the custom, tax and service provisions (Crafts 2016). This also ensures that the goods must be reached the markets before the withdrawal date but cross the border only after exit.
It serves for both the UK as well as the EU to maintain their deeply integrated trade and economic partnership after the UK exits from the EU (Dhingra et al. 2016). The statistics of the EU reveals that it has exported goods worth of 314 billion Euro to the UK in 2016, which is more than its total exports to brazil, china, India and Russia.
Through the membership with the EU, the UK’s economies including the regulatory system have achieved a deep integration. National Standards Bodies’ membership of European and International Standards Organisations has enabled to develop the business standards that the EU’s business use. The UK’s withdrawal bill will enable the UK to convert the existing laws of the EU and give power of corrections to these laws. Therefore, these regulations will be continuing to function in the country.
The UK recognizes that the future partnership will be built on the longstanding trust as well as the commonalities of both the systems because this will not allow the either party to ignore the starting point which is unique.
The UK acknowledges the import position of consumer and business in this discussion therefore, it will be engaged in making the consumer and business organizations understand and increasing concerns (Coulter and Hancké 2016). There are some problematic issues associated with goods and services which the UK government aims to resolve. The relevant issues regarding the separation discussion in relation with goods and services will be resolved for better future partnership.
As the UK-EU deal discusses, the UK’s only land border between Ireland and UK will be protected for trade and free movements. the UK government has welcomed The negotiation guidelines of the European council’s clear commitment and the European commission’s directions to achieve this flexible relationship. This process needs intimate engagement on agriculture, customs and other economic matters according to the progress of the negotiations.
The UK government aims to work with the developed countries and the Crown Dependencies, Gibraltar government and Overseas Territories, which are constitutionally separated and have various interests. The UK will be fully engaged with these governments to account the priorities of these countries regarding this issue.
This paper strategizes four principles that will help in achieving the objectives of offering certainty and avoiding problems associated with the continued availability of goods.
Firstly, the UK government wants to ensure undisrupted availability of goods in both the UK as well as the EU markets at the withdrawal date. The goods available in the single market must be continued to circulate freely in the UK and EU markets without any additional restrictors.
Secondly, the government wants to avoid possible and unnecessary activity duplication and provide the legal certainty. The markets where the trades undertake the compliance activities before exit, the government do not expect any duplication of activities to place the products on the markets after exit. This also includes the recognition of validity approval, issues registration and certificates before exit.
Thirdly, the UK government wants to ensure that the agreement will facilitate the continued product as well as market surveillance and goods legislation (Ottaviano 2014). This includes that the authority will take necessary action to the non-compliant products.
Fourthly, this agreement on goods undermines that the places where the goods reach with services, will have no restriction to the provision of the services.
The government holds that all products those are lawfully placed in the markets prior to the exit will be continue to free circulation without any restrictions. This applies to all types of goods including those which are regulated by the Union Law also those which are authorized for free circulation recognised by the mutual recognition principle.
In order to avoid disturbance to the services to consumers and trade, the agreement makes use of the proper and applicable definitions of placed goods in the market (Kierzenkowski, Rusticelli and Zwart 2016). The agreement will recognise that these are sector specific and provide an understandable and clear interpretation of the term products place on the market.
The agreement will include the available goods on the EU and UK markets, therefore it will provide assurance that no changes are needed to the continue supply of goods (Dymski 2015). This agreement issues are not limited to ensure that there is no need to change the labels of the products and recognition of the validity of approvals, authorisations and issued registration of the products (Johnson 2016). In some cases, the products need the recognitions of the responsible person for its regulation such as authorised representation for medicines and medical devices and responsible person for cosmetic products. That person must be able to continue carry out the responsibility activities before exit and relocation is not required.
Regarding to the original marketing as well as approval of the goods need to interact with the market authorities of the UK and the EU so that they can ensure that the product will be traced through the supply chain (Driffield and Karoglou 2016). Possible failure to this recognition of the agreement will result to disruption. Therefore, the product needs to be relabelled in order to maintain the traceability requirements which usually could affect the public safety.
The UK government recognises the relevance of market placement of a goods and wants to shorten the disruption to the border range of goods as well as financial activity (Jim Burtles, CMLJ and Burtles 2013). It wants to provide certainty to the goods which were placed on the UK market before its exit.
In order to continue the commercial activities as well as placing of goods in the markets, the business have to undertake some lengthy and complex as well as costly procedures. These are required to ensure that the goods and the business services are complying with the Union Legislation also production requirements (Kee and Nicita 2017). An EU recognised organization will examine the products whether they are produced according to the good manufacturing practice and submit the data to the respective authority.
The validity of compliance must be recognised by the Withdrawal Agreement. This must be recognised irrespective of places, for full time period and overlooking the type of the product.
The UK government wants to keep away from unnecessary problematic transfer of the activities between the UK and the EU governments (Müller, Kudrna and Falkner 2014). Therefore, the UK government wants to propose that in any case of compliance activities identified through the agreement, the business an authority must be continuing the ongoing actions for the relevant goods or types of goods for both the UK and EU markets and these activities must take place in their locations as at the withdrawal date.
In any case, there can be obligations by the assessment bodies, after they assess the quality of the product. The UK advices that they can continue fulfilling that obligation regarding that particular product for life time (Sampson et al. 2016). The government recognises that both the authorities must be confident that these assessment bodies will be capable to carry out these kind of activities.
As mentioned previously, the many products must undergo assessment and submit their registration to work according to compliance activity and ensure that the products meet the requirements of the product legislation. These assessments can be time limited or valid for full product life time.
The government aims to ensure that these approvals, authorizations, registrations and certificates must be continued to be recognised valid by the both markets of EU and UK.
After the products are placed in the markets, it is necessary of the authorities to trace the products through the distribution chain. After which the surveillance authority will be able to take action to the non-compliant products.
The failure of surveillance that support oversight and enforcement validity of the goods will bring disruption as well as uncertainty to the consumers and goods (Lea 2017). The agreement mentions about the continuous surveillance of products in the markets for its traceability. It encompasses a wide rage which includes
The agreement must clarify the process to conduct these activities. For all the services and goods under the coverage of the agreement, the assessment bodies must be recognised for fulfilling any obligations regarding the validity of the products as well as services.
Both the authorities must be confident in the competence of these bodies. The range of mechanisms that they will follow must be of international standard.
The UK government wants to explore the areas where the services are provided along with goods. This paper takes account of intimate connection between the availability of the goods the services offered with them (Swinbank 2017). Thus includes those services also which already have been provided before the exit. Therefore, the government wants an elaborate discussion in order to avoid any uncertainty as well as disruption.
The government also wants to analyse the trade flows that are based on collaboration of goods and services. Services are irremovable part of the production of goods, sell, delivery, operation and their repair. Therefore, the government has taken initiatives to outline its position on the relevant matters on the interrelationship of goods and services and bring them under negotiation.
The negotiation is important for the continuation of business in undisrupted way and close monitoring of the developments. This paper seeks to identify the possible areas which may be affected by the new and amended legislation. It is important to consider the depth of the effects and identify the ways through which the impacts can be mitigated and advocacy can be directed.
References:
Baldwin, R. and Lopez?Gonzalez, J., 2015. Supply?chain Trade: A Portrait of Global Patterns and Several Testable Hypotheses. The World Economy, 38(11), pp.1682-1721.
Coulter, S. and Hancké, B., 2016. A bonfire of the regulations, or business as usual? The UK labour market and the political economy of Brexit. The Political Quarterly, 87(2), pp.148-156.
Crafts, N., 2016. The Growth Effects of EU Membership for the UK: a Review of the Evidence. Competitive Advantage in the Global Economy (CAGE), Global Perspectives Series: Paper, 7.
Dhingra, S., Ottaviano, G., Sampson, T. and Van Reenen, J., 2016. The impact of Brexit on foreign investment in the UK. BREXIT 2016, p.24.
Driffield, N. and Karoglou, M., 2016. Brexit and Foreign Investment in the UK.
Dymski, G., 2015. Capital Market Union: Can Europe’s investment malaise be resolved by doubling down on its banking contradictions?
Ivona, B., Nova?ko, L. and Ogrizovi?, D., 2014. Processing reverse logistics inventories. Scientific Journal of Maritime Research, 28(1).
Jim Burtles, K.L.J., CMLJ, F. and Burtles, J., 2013. Principles and Practice of Business Continuity: Tools and Techniques. Rothstein Publishing.
Johnson, M., 2016. Brexit, trade and tariffs part three: how much freedom will Britain have to set its own tariffs?. LSE Brexit.
Kee, H.L. and Nicita, A., 2017. Short-term impact of Brexit on the United Kingdom’s export of goods.
Kierzenkowski, R., Rusticelli, E. and Zwart, S., 2016. The Economic Consequences of Brexit.
Lea, R., 2017. The UK economy: still growing and fair prospects in 2018. Arbuthnot Banking Group, 25.
Müller, P., Kudrna, Z. and Falkner, G., 2014. EU–global interactions: policy export, import, promotion and protection. Journal of European Public Policy, 21(8), pp.1102-1119.
Ottaviano, G.I., Pessoa, J.P., Sampson, T. and Van Reenen, J., 2014. The costs and benefits of leaving the EU.Whitman, R.G., 2016. The UK and EU foreign, security and defence policy after Brexit: integrated, associated or detached?. National Institute Economic Review, 238(1), pp.R43-R50.
Sampson, T., Dhingra, S., Ottaviano, G.I. and Reenen, J.V., 2016. How do ‘Economists for Brexit’manage to defy the laws of gravity?. LSE Business Review.
Swinbank, A., 2017. Brexit, Trade Agreements and CAP Reform. EuroChoices, 16(2), pp.4-9
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