3.3 EU Next Generation

3.3 EU Next Generation Trade Agreements

	Australia – The negotiations were launched in June 2018. Through 2018, 2019 and 2020 nine rounds of negotiations have taken place with substantial progress being made on each agreement. Ireland exported €889m worth of goods to Australia in 2020. Australia is the 14th largest economy in the world.

Figure from page 23

The ‘Next Generation’ Trade Agreements are about more than just tariffs. For example, as part of the negotiations there are generally steps agreed which aim to make it easier for Irish companies to:

	New Zealand – Operating to a similar schedule as Australia, these negotiations were also launched in June 2018, and there have been nine rounds up to the end of 2020. According to an EU impact assessment, as a result of the agreement trade between New Zealand and the EU could increase 36%.

		Canada – The Comprehensive Economic Trade Agreement provisionally entered into force in 2017 (CETA). The deal removes 99% of tariffs. As part of the deal Canadian Public Procurement processes are opening up for European firms. There have also been frameworks and structures put in place that can allow for easier certification of products and the recognition of professional qualifications such as architects or engineers. For full ratification CETA needs to be approved by all 27 EU Member States in line with their national procedures.

	Singapore – The Free Trade Agreement and the Investment Protection Agreement between the EU & Singapore were signed in October 2018. The FTA came into force in November 2019. The agreement will scrap all duties on EU exports. It has been designed to stimulate ‘green growth’ by removing trade obstacles for green tech and create opportunities for environmental services.

• Access Public Procurement,

• Get products certified or comply with labelling rules,

• Avail of simplified customs procedures,

• Have professional qualifications such as architects recognised,

	Japan – The Economic Partnership Agreement between the EU and Japan was signed on 17th July 2018 and came into effect on 1st February 2019. Tarif freductions will be delivered on a phased basis over a period of 15 years. This is the world’s largest trade deal, removing tariffs on 99% of EU exports to Japan. The agri-food sector, medical devices and pharmaceutical products will see particular benefits.

	Vietnam – The Free Trade Agreement and Investment Protection Agreement were signed in June 2019. The European Parliament approved the agreements in February 2020. The Trade Agreement was approved by the Vietnamese National Assembly paving the way for its entry into force on 1st August 2020. The investment protection agreement with Vietnam will still need to be ratified by all Member States. Once ratified, it will replace the bilateral investment agreements that 21 EU Members States currently have in place with Vietnam. As part of the deal Vietnam is ratifying several International Labour Organisation conventions that provide rights to workers.

• Access business visitor visas,

• Deliver cross border services,

• Protect their intellectual property rights.

Examples of Trade Agreements that were recently agreed or are the subject of ongoing negotiations are as follows

	Mercosur – Mercosur comprises Argentina, Brazil, Paraguay and Uruguay. Together this is a market of 260m people. In June 2019 a political agreement on a comprehensive trade agreement was reached. In addition to cutting tariffs the agreement promises to ease the customs and compliance procedures that EU firms experience when exporting to the region. The full text of the agreement will now move forward for legal revisions, translations and will need to be approved by the EU Council and Parliament.

	South Korea – The EU – South Korea Free Trade Agreement was provisionally applied in 2011 and formally ratified in 2015. As part of the agreement South Korea removed most import duties on EU products. For Ireland, exports have increased 133% since the deal was signed.