Brexit: Theresa May keen on new trade deals with non-EU countries

British Prime Minister Theresa May, yesterday, committed to placing a final Brexit deal to a vote in both houses of the UK parliament, as she outlined for the first time her plan for extracting Britain from the European Union. Though she did not refer to anything particularly related to the Economic Partnership Agreement (EPA) with the East African Community (EAC), the British Prime Minister noted that UK needs to increase significantly its trade with the fastest growing export markets in the world. UK premier Theresa May. May said: “It is not just trade with the EU we should be interested in. A Global Britain must be free to strike trade agreements with countries from outside the European Union too.” The EU is currently in the process of finalising the EPA with the EAC. Negotiations were concluded but the trade deal needs to be ratified by each EAC partner state and this is where the sticking point lies as only Kenya and Rwanda put pen to paper late last year. “We want to get out into the wider world, to trade and do business all around the globe,” May said, noting that countries, including China, Brazil, and the Gulf States have expressed their interest in striking trade deals with the UK. Questions The British Prime Minister acknowledges that her emphasis on striking trade agreements with countries outside Europe has “led to questions about whether Britain seeks to remain” a member of the EU’s Customs Union. She admits that full Customs Union membership prevents her country from negotiating its own comprehensive trade deals. “Now, I want Britain to be able to negotiate its own trade agreements. But I also want tariff-free trade with Europe and cross-border trade there to be as frictionless as possible.” That means, she explained, she does not want Britain to be part of the Common Commercial Policy as well as not be bound by the Common External Tariff. These, she said, are the elements of the Customs Union that “prevent us” from striking our own comprehensive trade agreements with other countries. “But I do want us to have a customs agreement with the EU,” she said. “Whether that means we must reach a completely new customs agreement, become an associate member of the Customs Union in some way, or remain a signatory to some elements of it, I hold no preconceived position. I have an open mind on how we do it. It is not the means that matter, but the ends.” May said she wants to remove as many barriers to trade as possible. She wants Britain to be free to establish its own tariff schedules at the World Trade Organisation, meaning it can reach new trade agreements not just with the EU “but with old friends and new allies from outside Europe too.” Late last year, the government of Rwanda said the EPAs which were signed by the Trade ministers of Rwanda and Kenya in Brussels, Belgium will make it easier for Rwandan products to access the EU market. In 2015, the EU took in 28 per cent of Rwanda’s total exports, mainly composed of minerals, coffee, tea and horticulture products. According to government, the agreement provides a more predictable and rule governed transparent trade regime which will enhance FDI inflows. Furthermore, it is noted that the regime has simplified rules of origin which will make it easier for Rwandan products to access the EU market. Despite the signing by Rwanda and Kenya, uncertainty still abounds as regards what really happens in the event that not all EAC countries sign the deal. Last July, Tanzania indicated it will not sign the agreement, citing the “turmoil” that the EU is experiencing following Britain’s exit from the bloc. The East African Legislative Assembly (EALA), now sitting in Kampala, Uganda, is looking forward to the next Summit of EAC Heads of State “that shall conclude among other matters,” the EPAs, Speaker Dan Kidega said yesterday. Kidega said: “As an Assembly, we want the EPAs handled with utmost care taking into consideration our quest for industrialisation so that a suitable decision that takes into consideration what is best for the region is achieved.” The next Summit of EAC Heads of State is expected next month. editorial@newtimes.co.rw

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Brexit: Theresa May keen on new trade deals with non-EU countries