‘No-deal’ Brexit would hit trucks, airlines and pet owners — govt papers

Britain’s Chancellor of the Exchequer Philip Hammond arrives in Downing Street in London on September 24, 2018. (AFP)
Updated 25 September 2018
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‘No-deal’ Brexit would hit trucks, airlines and pet owners — govt papers

  • Many business chiefs and investors fear politics could scupper an agreement
  • Without a deal, the UK would move to customs arrangements set by the WTO for external states with no preferential deals

LONDON: Leaving the European Union without a proper divorce deal could ground airlines, stop hauliers from lugging goods to the world’s biggest trading bloc and even make headaches for pet owners who want to take their dogs on holiday, according to government documents.
With just six months to go until the United Kingdom is due to leave the EU on March 29, Prime Minister Theresa May has warned that negotiations are at an impasse and that the EU must come up with new proposals on how to craft a divorce settlement.
Many business chiefs and investors fear politics could scupper an agreement, thrusting the world’s fifth largest economy into a “no-deal” Brexit that they say would spook financial markets and silt up the arteries of trade.
Britain, which has warned it could leave without a deal, published 25 technical notices on Monday covering everything from commercial road haulage and buying timber to airline regulations and taking pets abroad.
“If the UK leaves the EU in March 2019 with no agreement in place, UK and EU licensed airlines would lose the automatic right to operate air services between the UK and the EU without seeking advance permission,” the government said.
Overall, the government has published more than 65 such notices giving a glimpse of what a no-deal Brexit — the nightmare scenario for chief executives of most multinationals operating in Britain — would look like.
Amid warnings that trucks could stack up on both sides of the English Channel in the confusion of a no deal, Britain said it would seek to strike bilateral agreements with European countries to ensure hauliers would retain access.
The notices covered a vast swathe of the British economy, warning, for example, that labels on packaged food would have to be changed.
“Use of the term ‘EU’ in origin labelling would no longer be correct for food or ingredients from the UK,” the government said.
Honey producers would have to change their labels while EU countries might not accept British mineral water, the government said.
In the worse case scenario for pet owners, dogs, cats and even ferrets might need health certificates and rabies jabs. Travel plans would have to be discussed with a vet at least four months in advance before traveling to the EU.
That would mean someone wanting to take their pet to the EU on March 30, 2019, the day after Britain leaves the bloc, would have to discuss the trip with a vet before the end of November.
Without a deal, the UK would move from seamless trade with the rest of the EU to customs arrangements set by the World Trade Organization for external states with no preferential deals.
Brexiteers accept there is likely to be some short-term economic pain but say the government is trying to scare voters about the impact of a no-deal Brexit.
Britain, many Brexiteers say, will thrive in the longer term if cut loose from what they see as a doomed experiment in German-dominated unity and excessive debt-funded welfare spending.

 


GCC, India relaunch negotiations on free trade deal

Updated 6 sec ago
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GCC, India relaunch negotiations on free trade deal

  • India’s trade with GCC was valued at more than $178 billion in 2024-25 fiscal year
  • FTA will benefit infrastructure, petrochemicals sectors, Indian minister says

NEW DELHI: The Gulf Cooperation Council and India relaunched negotiations for a free trade agreement by signing the terms of reference for the talks on Thursday, about two decades after a first attempt stalled. 

India already has a Comprehensive Economic Partnership Agreement with two GCC members, Oman and the UAE, signed last year and in 2022, respectively.  

Its trade negotiations with the GCC — members of which also include Saudi Arabia — stalled following a framework agreement signed in 2004 and two rounds of talks held in 2006 and 2008. 

“It is most appropriate that we now enter into a much stronger and robust trading arrangement which will enable greater free flow of goods, services, bring predictability and stability to policy, help encourage greater degree of investments and take our bilateral relations between the six-nations GCC group and India to greater heights,” India’s Commerce Minister Piyush Goyal said in a press conference in New Delhi on Thursday. 

GCC-India bilateral trade was worth more than $178 billion in the 2024-25 fiscal year, accounting for more than 15 percent of India’s global trade. The region is also home to about 10 million Indians who live and work in the Gulf. 

The relaunched negotiations with Gulf countries came as Delhi accelerated discussions to finalize several trade agreements in recent months. 

Earlier this week, India reached a trade deal with the US after months of friction, following recent conclusions of similar negotiations with New Zealand and the EU. 

“As, I believe, the GCC and India come closer together, we will become a force multiplied for global good,” Goyal said. 

Food processing, infrastructure, petrochemicals and information and communications technology are sectors that will benefit from India-GCC FTA, he added. 

The free trade negotiations are taking place at a time when globalization was “under attack,” said GCC’s chief negotiator, Dr. Raja Al-Marzouqi. 

“It’s a message, a signal for the whole globe and it’s important for us at this time to try and be more cooperative,” he told reporters in New Delhi, adding that the first round of talks was likely to take place at the GCC headquarters in Riyadh. 

“When we agree, we will contribute as long as possible to the stability of the global economy.”