THE UK has a large volume of trade in services with EU countries. It’s made possible by the common framework of regulations and standards that is part and parcel of single market membership.
For example, the shared rules mean that a UK legal firm can establish itself in another EU country without additional registration. And the staff in that firm are entitled to at least the same floor of rights in one EU country as in another.
The same is true of trade in goods between EU countries. Not only has free trade in goods been enabled by the lack of tariffs between EU countries, common standards in areas such as workers’ rights have prevented countries from undercutting each other. This guarantees an important level playing field.
The TUC believes it is essential for the UK Government to commit to match the high level of worker rights found in the EU.
This should be not only for existing rights, but also future rights agreed in Europe. It is only right people working in the UK enjoy the same rights as those working in Germany, France and Spain.
In addition, the deal should ensure there continues to be barrier-free, and tariff-free, trade in goods and services between the UK and EU. This is crucial for jobs and our economy.
Many experts have highlighted how difficult it would be for the UK to negotiate a similar level of barrier-free trade in services with non-EU countries. This is partly due to the vastly different regulations non-EU countries have around standards. Some differences are technical, others are on social and employment rights.
In China – one of the countries suggested as a potential partner for future UK deals – not only are products produced to a lower level of safety specifications, labour standards are also not upheld.
Workers have no right to join independent trade unions, and labour rights campaigners are frequently jailed.
Of course, the UK should seek to build trade relationships with non-EU countries after Brexit. But this must be in addition to, rather than a substitute for, a deal with the EU. And all Britain’s trade deals must ensure workers’ rights are protected and extended, both here and abroad.
There are also dangers in the suggestion that the UK Government should turn away from the EU single market and push for global liberalisation of service markets.
The TUC, like unions internationally, has campaigned to warn people of the dangers of governments making agreements such as the Trade in Services Agreement (TiSA). This deal seeks to liberalise trade in services around the world.
However, it would do so in ways that bring down important protections for public services, exposing services such as the NHS to privatisation. And it does this damage while making no reference to respect for workers’ rights.
Brexit must not mean a rush to negotiate trade deals with partners that don’t respect workers’ rights.
It must not mean putting our public services up for privatisation in the global marketplace.
UK trade policy after Brexit must focus on getting the best deal for workers with the EU. It must be a deal that protects jobs, and keeps a level playing field for rights at work. And it must be backed by an industrial strategy that empowers the workforce, funds skills and addresses regional inequalities.
Rosa Crawford is Policy Officer in the International Relations and European Union Department of the TUC
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