ASEAN-UK trade deals hold promise, amid bottlenecks

Subject

UK post-Brexit trade with ASEAN.

Significance

The UK government is retooling trade policy ahead of the United Kingdom's departure from the EU in March 2019 after which it will regain its ability to negotiate trade deals. In April, UK international trade secretary Liam Fox confirmed that this would include seeking free trade agreements (FTAs) with ASEAN and its member states.

Impacts

• ASEAN infrastructure and regulatory imbalances will stifle efficient trade growth in the medium term.
• Effective implementation of trade deals will require the United Kingdom to settle its post-Brexit WTO arrangements quickly.
• The May 16 ECJ ruling could make it easier for the European Commission to agree FTAs without portfolio investment provisions.