At a meeting of the Committee on Agriculture on Tuesday 26 February, the European Union's proposal to allocate tariff rate quotas between the EU-27 and the United Kingdom after 29 March, the date set for Brexit at this stage, was once again criticised by many World Trade Organisation (WTO) members.
While representatives of many countries - such as the United States, China and Australia - recalled their dissatisfaction, New Zealand was the most vehement, said a source close to the discussions. The Wellington representative described the intention of the EU and the United Kingdom to reduce their tariff rate quota commitments under the WTO as “cynical” and an “unfortunate double standard”, noted the same source.
By October 2018, several countries had already questioned the methodology and accuracy of the import data provided by the EU to justify this distribution grid. For these trading partners, the changes proposed by the EU and London go beyond a simple rectification of the lists, resulting in reduced market access for their exporters and reduced flexibility. Therefore, these countries require that any changes to these binding commitments of the 28 at the WTO be offset by additional concessions and that they be adopted with their agreement.
Published at the end of January, Commission Regulation (2019/216) clarifies the allocation method, agreed upon with London, whereby the UK share will be subtracted from the EU quota on the basis of its use of this quota and over a recent three-year representative period, expressed as a percentage of the EU (see EUROPE 12173, 12114).
The EU also proposes, due to the Brexit schedule, to proceed unilaterally with this tariff rate quota allocation. These can be applied the day after the British withdrawal from the EU.
Talks to find mutually satisfactory solutions with these states have already begun (see EUROPE 12136, 12114). However, at only one month before the scheduled Brexit expiry day, they will most likely not be concluded in time.
The EU and the United Kingdom will therefore have to 'twist the arms' of WTO members, temporarily, by imposing their allocation method on them. (Original version in French by Hermine Donceel)