News of another FTA trickling in - a Japan-UK FTA this time. Reports of the deal are found here, here and here. Considering general timelines for FTAs, some being negotiated for years if not decades, this is quite an achievement - limited deal or otherwise.
UK's negotiating objectives are outlined here which include an ambitious FTA going beyond the EU-Japan FTA, opening up new opportunities for UK's MSMEs, high consumer standards, ambitious digital trade provisions (a la DEPA which I had blogged about here), export of professional services like banking, accounting and engineering services and automative exports amongst others.
However, one objective that stood out for me was with relation to health care:
The government has been clear that when we are negotiating trade agreements, the National Health Service (NHS) will not be on the table. The price the NHS pays for drugs will not be on the table. The services the NHS provides will not be on the table. The NHS is not, and never will be, for sale to the private sector, whether overseas or domestic.
Pretty clear and categorical on that front - no question about negotiating or liberalising on health services. Full stop. I guess when it comes to many other countries and their negotiating positions, the full stops are on many sectors and issues. That is the dynamics of international trade.
On investment, it included an objective of ensuring "UK investors in Japan continue to enjoy high standards of treatment." Well this must definitely mean some of the standards like Fair and Equitable Treatment and definitely the ISDS mechanism.
The UK has also seen these FTA negotiations as part of the larger geo-political landscape and the need to be part of rule-making in increasingly fragmented trade deals.
These bilateral negotiations will also be a logical stepping stone to joining the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). CPTPP is one of the world’s largest free trade areas, representing over 13% of global GDP in 2018, increasing to more than 16% if the UK were to join, and Japan is the largest trading partner out of all the CPTPP member nations, representing over 28% of total CPTPP trade.
Lastly what struck me was the 96 page UK strategic approach paper for these negotiations - all details, objectives, data in the public domain. Also indicates how data and evidence is the basis for trade negotiating positions.
Will wait for more details on the text itself. The devil, in trade deals, is ultimately the text.
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