Europe is calling all the shots in UK-EU ‘reset’

Europe is exerting significant influence over the United Kingdom's approach to trade through the EU reset, warns David Collins. The plan could potentially undermine parts of the UK's post-Brexit trade agreements and lead to retaliation from existing trade partners. The EU's "Reset" seeks to align UK and EU regulations more closely, particularly in the areas of agrifoods and emissions trading, which could conflict with the UK's existing trade relationships, such as the Comprehensive Progressive Trans-Pacific Partnership (CPTPP) that the UK joined in early 2021.

The EU's approach is based on the Precautionary Principle, which often leads to over-regulation, whereas the CPTPP prioritizes sound scientific evidence and genuine risks. This difference may negatively impact future UK-US trade agreements, as the US favors the latter. EU dynamic alignment aims to reduce or eliminate border checks for agrifood products by forming a common regulatory area between the entire UK and EU.

However, this arrangement requires the UK to update its laws whenever EU rules change, even though the UK has no say in their creation. This situation subjects the UK to the jurisdiction of a foreign court, the European Court of Justice, unlike other trade agreements that typically involve neutral international tribunals. The EU's insistence on mirroring another country's trade policy is unprecedented in international trade law.

Additionally, the UK must also follow the EU's carbon emissions trading scheme, which could lead to increased prices for consumers and potential discrimination claims under the UK's treaty obligations and World Trade Organization rules. Ultimately, the EU reset places the UK's trade relations with the EU above those with other growing economies, potentially frustrating future bilateral trade negotiations.