Subsidies
64. The UK will have its own regime of subsidy control. The Agreement should include reciprocal commitments to transparency about the award of subsidies which go beyond the notification requirements set out in the WTO Agreement on Subsidies and Countervailing Measures. This should include an obligation on both parties to notify the other every two years on any subsidy granted within its territory, applying to goods or services, in line with EU-Japan EPA. The Agreement should also include the right to request consultations on any subsidy that might be considered to harm the interests of the parties.
65. In line with precedent such as CETA and the EU-Japan EPA, the consultation commitment should not be subject to the Agreement’s dispute resolution mechanism outlined in Chapter 32.
Competition Policy
66. In line with precedent, such as CETA, the Agreement should commit the parties to maintain effective competition laws, covering merger control, anticompetitive agreements and abuse of dominance, while maintaining the right to provide for public policy exemptions. This does not require legal or regulatory alignment. Both parties should have the regulatory freedom to respond to new and emerging challenges in these areas.
67. The Agreement should include provisions that have transparent, non-discriminatory rules and enforcement procedures for competition law. It should also recognise the mutual importance of effective cooperation between the parties on competition law.
68. In line with precedent such as CETA, EU-Japan EPA and EU-South Korea, the provisions of this chapter should not be subject to the Agreement’s dispute resolution mechanism outlined inChapter 32. 3 ECMT is the European Conference of Ministers of Transport; AETR is the European Agreement Concerning the Work of Crews of Vehicles Engaged in International Road Transport.
State Owned Enterprises, Enterprises Granted Special Rights or Privileges and Designated Monopolies
69. The Agreement should ensure that the UK and EU’s State Owned Enterprises operate in a fair and transparent manner and do not discriminate against businesses in the other party when buying and selling on commercial markets.
70. These provisions should apply to business enterprises where the state has significant control through full, majority, or minority ownership. They should cover designated monopolies and any enterprise granted special rights or privileges by the State.
Intellectual Property
71. The Agreement should include an Intellectual Property (IP) chapter that secures mutual assurances to provide high standards of protection for IP rights, including registered IP rights such as patents, trademarks or designs, or unregistered rights such as copyright, trade secrets or unregistered designs. These provisions should make reference to and exceed the standards set out in international agreements such as the WTO agreement on Trade-Related Aspects of Intellectual Property and World Intellectual Property Organisation treaties. The UK is open to discussing mechanisms for cooperation and exchange of information on IP issues of mutual interest.
72. There are different ways of proceeding on Geographical Indications (GIs) and the UK will keep its approach under review as negotiations with the EU and other trading partners progress. Any agreement on GIs must respect the rights of both parties to set their own rules on GIs and the future directions of their respective schemes. Chapter 24: Good Regulatory Practice and Regulatory Cooperation
73. The Agreement should include provisions on Good Regulatory Practice and Regulatory Cooperation, in relation to business activities. These provisions aim to reduce non-tariff barriers to trade between the parties, creating an environment that promotes investor and exporter confidence in all sectors. They should include reciprocal commitments to regulation-making processes that are robust, transparent, evidence-based and proportionate, and ensure that regulatory burdens are kept to a minimum.
Trade and Sustainable Development
74. The Agreement should include provisions for sustainable development covering the protections afforded by labour and environmental law.
Trade and Labour
75. The Agreement should include reciprocal commitments not to weaken or reduce the level of protection afforded by labour laws and standards in order to encourage trade or investment. In line with precedent, such as CETA, the Agreement should recognise the right of each party to set its labour priorities and adopt or modify its labour laws. The Agreement should also include commitments from both parties to reaffirm existing International Labour Organisation (ILO) principles and rights. The Agreement should establish cooperation provisions between the parties, including dialogue and exchange of best practice.
76. In line with precedent such as CETA, EU-Japan EPA and EU-South Korea, these provisions should not be subject to the Agreement’s dispute resolution mechanism outlined in Chapter 32.
Trade and Environment
77. The Agreement should include reciprocal commitments not to weaken or reduce the level of protection afforded by environmental laws in order to encourage trade or investment. In line with precedent, such as CETA, the Agreement should recognise the right of each party to set its environmental priorities and adopt or modify its environmental laws. The Agreement should also include commitments from both parties to continue to implement effectively the multilateral environmental agreements to which they are party. The Agreement should establish cooperation provisions between the parties on environmental issues.
78. In line with precedent such as CETA, EU-Japan EPA and EU-South Korea, these provisions should not be subject to the Agreement’s dispute resolution mechanism outlined in Chapter 32.
Tax
79. While not commonplace in EU FTAs, the Agreement could include commitments to the principles of tax good governance as reflected in international standards, including on tax transparency, exchange of information, fair taxation and the Base Erosion and Profit Shifting (BEPS) minimum standards.
80. The Agreement should not constrain tax sovereignty in any manner. 81. The provisions of this chapter should not be subject to the Agreement’s dispute resolution mechanism outlined in
