Non-regression clauses.pdf (127.38 kB)
Environmental standards and regulation
Both the United Kingdom (UK) and the European Union (EU) have called for non-regression of environmental standards and regulation in their future relationship. As environmental regulation imposes costs, there is an incentive for governments to give their industries a competitive advantage through deregulation. The EU has tried to prevent this problem in existing trade agreements by including a requirement for non-regression of environmental standards. The draft Withdrawal Agreement of November 2018 also includes requirements for non-regression of environmental standards that would apply, as part of the so-called backstop, if a future relationship agreement were not concluded by the end of the transition period. Even if (and when) the backstop is superseded by the future relationship, the UK and the EU have indicated that this relationship will build on these commitments. In this note I first describe why this ‘environmental backstop’ is an innovative hybrid between the full alignment with environmental legislation required in EU Association Agreements and the European Economic Area (EEA) Agreement, and the arm’s length non-regression requirements that the EU has negotiated in its trade agreements with countries such as Canada and South Korea. It also has some unique features. Notably, successful implementation would require substantial reform in UK environmental monitoring and enforcement. I thus examine how it might function in practice, focusing on challenges with enforcement. Finally, I analyse its applicability to different models for the future relationship. The Withdrawal Agreement links environmental non-regression to a specific UK-EU customs union. However, if the UK and EU go beyond this, pursuing deep regulatory alignment, it will also prove a source of fundamental disagreement. The UK’s current position is to push for non-regression to stand in for regulatory alignment, whilst the EU will likely reject such an approach.
Funding
Sustainable Trade post-Brexit; SSRP
History
Publication status
- Published
File Version
- Accepted version
Publisher
European Policy CentrePage range
33-46Pages
143.0Book title
Ensuring a post-Brexit level playing fieldPlace of publication
BrusselsDepartment affiliated with
- Law Publications
Research groups affiliated with
- UK Trade Policy Observatory Publications
Institution
University of SussexFull text available
- Yes
Peer reviewed?
- No
Legacy Posted Date
2019-02-05First Open Access (FOA) Date
2019-02-05First Compliant Deposit (FCD) Date
2019-02-05Usage metrics
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