Source · Select Committees · Business and Trade Committee
Recommendation 11
11
Accepted in Part
Identify sectors for compatible EU regulation and commit to a corresponding regulatory roadmap.
Recommendation
We recommend that the Government consults with the business community, unions, workers and consumer groups and identifies sectors of the economy where, over the next ten years, there could be mutual gains from maximising compatible regulation with the EU. This should include an assessment of the flexibilities the UK might need to maintain membership of existing trade deals like CPTPP, and to agree the free trade deals currently under negotiation with Switzerland and the Gulf Cooperation Council. Where there is significant mutual gain from compatible regulation with the EU, the Government should commit to a regulatory roadmap that maintains compatible regulations with the EU. It should also seek, where beneficial for both parties, mutual recognition of conformity assessments. (Recommendation, Paragraph 54)
Government Response Summary
The government acknowledges the importance of compatible regulation with the EU and states it will continue to engage with industry and consider consistent approaches where beneficial. However, it notes that recent summit outcomes did not include a commitment to negotiate mutual recognition agreements, despite recognizing their value.
Government Response
Accepted in Part
HM Government
Accepted in Part
The EU is our biggest trade partner and how it regulates is important to our traders. The UK has taken a sovereign decision to agree to align rules in some areas, such as a new SPS agreement and on energy, to unlock market access for UK firms. We will have a role in shaping EU decisions on regulations in scope of these agreements. In terms of the domestic regulatory choices we make, we will continue to engage closely with industry and take decisions in the national interest. Where there is benefit to taking a consistent approach with the EU, we will of course consider this, as well as taking into account our international commitments, including our recently concluded agreements with the US and India. The Government notes the Committee’s suggestion that the UK should explore the mutual recognition of conformity assessment with the EU, and recognises the valuable role such arrangements can play in facilitating trade. While the recent Summit outcomes did not include a commitment to negotiate MRAs, the Government remains committed to tackling barriers to trade with the EU and looks forward to continued dialogue with the EU about how we can promote closer economic co-operation and the Government is committed to annual summits.