After negotiations with Canada hit a halt alongside those with US and India, UK has limited Pacific agreements to show for Brexit
Graham Watson's insight:
The Guardian summarises the state of play regarding the UK's trading relationships, and those trade deals that have been agreed and those that remain to be agreed.
The net effects of deals with Japan, Australia and New Zealand isn't going to be massive, although membership of the CPTPP might have greater effect, not least as these economies grow. That said, there are a number of notable deals yet to be struck - with the US and India.
The government says consumers and businesses will benefit from deal, but it is unlikely to boost growth.
Graham Watson's insight:
I'm overwhelmed by this news - brilliant! Even the government's own assessment of the value of the deal makes it plain that we only export £112m worth of goods to New Zealand, and trade with it represents 0.2% of our total.
And there are distributional concerns too, with British farmers concerned about how New Zealand farmers have been given free access to our markets.
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The UK wants a quick trade deal with Australia, but concerns over agricultural tariffs could get in the way.
Graham Watson's insight:
It seems that some groups are more equally than others, with the tacit admission that the UK's trade deals have been held up by UK farmers unhappy with the prospect of free trade.
This explains the current furore over the proposed trade deal with Australia and New Zealand and why is has taken so long to strike a trade deal with the US.
It's remarkable how a group which accounts for a tiny fraction of GDP and employment wields such power - I didn't see them objecting to free trade in those markets where it suits them.
In 2019 New Zealand focused public spending on improving citizens quality of life and devoting record funds to tackling poor mental health and domestic violence. As well as reducing child poverty and inequality.
Move called ‘historic’ but agreement with Australia forecast to raise Britain’s GDP by only 0.08% by 2035
Graham Watson's insight:
Apparently, a trade deal with Australia and New Zealand that's set to boost UK growth by 0.08% by 2035 is now deemed 'historic'. Well, we are where we are post-Brexit. And just perhaps it might exceed expectations and boost growth by 0.12% instead.
The majority of workers in Iceland now look set to move to shorter hours for the same pay.
Graham Watson's insight:
A really interesting study of 2,500 people - or 1% of Iceland's workforce has revealed that moving from a 40 hour working week to a 35 or 36 hour working week has been a success.
It says that despite the workers still getting the same pay, the move has not adversely affected, and in some cases it's enhanced productivity. It has implications for the length of the working week and further trials are already underway in both Spain and New Zealand.
Australian and New Zealand ministers say they are eager to do deals with the UK as their economies emerge from the coronavirus crisis
Graham Watson's insight:
Joy! Rapture!
The UK is beginning trade talks with Australia and New Zealand, preparing for a post-Brexit future, and both are keen to do deals with the UK, with Britain being Australia's seventh largest trade partner.
However, look deeper into this - via the Observatory of Economic Complexity - and you'll soon discover that in 2018, the two economies accounted for around 1.5% of our exports, and less than 1% of our imports. So excuse me if I don't crack out the bunting just yet.
What lessons can the we learn from the economic ructions suffered by New Zealand in 1973 when the UK joined the EEC?
Graham Watson's insight:
A diverting piece - but I have to say that despite the view that there are lessons to be learnt from the New Zealand experience, my gut reaction to the headline was "Not much".
And there are probably enough caveats in the article to justify this view.
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