Creating a progressive Canada-UK free trade agreement: Gaining civil support in a post-Brexit world
Eugene Beaulieu, University of Calgary; and Kamala Dawar, University of Sussex
Synopsis:
The United Kingdom and Canada face significant uncertainty as they each manage relations with their largest trading partners. The UK's imminent withdrawal from the European Union, and an aggressive American pivot toward a protectionist trade agenda threaten, stability in both countries.
Given the current political and economic climate, both countries share an interest in quickly forging a mutually beneficial bilateral trade agreement. But for Canada-UK trade negotiations to be successful, policy-makers need to better understand societal support for a trade agreement.
This project will examine key areas of civil society critiques of trade agreements, and will engage key groups that have expressed interest in the outcomes of trade negotiations. Drawing from other recent free trade negotiations, such as the Canada-European Union Comprehensive Economic and Trade Agreement, and the Transatlantic Trade and Investment Partnership, the project will provide lessons for building an agreement supported by both Canadian and UK citizens.
“The research proposed here will examine how Canada and the UK can deliver on a trade agenda that is progressive in nature and inclusive in impact, and one that is supported by both Canadian and UK citizens-as-voters.”
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Investment promotion and protection in the Canada-UK trade relationship
Andrea K. Bjorklund, McGill University;
and Yarik Kryvoi, British Institute of International and Comparative Law
Synopsis:
A crucial part of the future trade relationship between Canada and the UK will involve protecting foreign investments. Foreign direct investment stock in these two countries—C$97.9 billion of Canadian direct investment in the UK, and C$41.8 billion of direct investment from the UK in Canada in 2016—is significant, and makes considering bilateral investment regulation essential.
The nature and content of an international investment agreement between Canada and the UK remain highly uncertain. This project seeks to identify and analyze provisions that both countries could and should include in the agreement, to address: dispute settlement, the breadth of protections granted to foreign investors, and obligations imposed on these actors. The synthesis’ findings will inform decision-making in Canada and the UK as the two negotiate an investment agreement, and will lay the foundation for a new academic research agenda.
“Synthesizing knowledge regarding these provisions will ensure that policy-makers approach these unique negotiations with the appropriate tools to maximize the benefits to both countries, and [will] contribute to building a more legitimate international investment regime.”
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Gendering global trade through Canada-UK trade relationships
Erin Hannah, King’s University College at Western University;
and Adrienne Roberts, The University of Manchester;
Co-applicant: Silke Trommer, The University of Manchester;
Synopsis:
While applying gender mainstreaming strategies has been the norm in international development and humanitarian assistance for many decades, it is not yet common in international trade policy. Global policy-makers recognize that progressive trade policy must be gender-sensitive, and that current initiatives should aim at supporting women’s economic empowerment, closing gaps in the distribution of benefits, and minimizing the adverse impacts liberalization can have for vulnerable women.
This project will assess the current state of knowledge and existing policy initiatives on gendering global trade. Findings will inform national and international policy-making communities; and will identify promising policies and practices for how Canada and the UK can play leadership roles in advancing gender-sensitive and socially progressive policies in upcoming trade negotiations.
“Based on this research, we will identify the most promising policies and practices, and indicate areas that require more data and research in order to contribute evidence for future Canada-UK trade policy-making. ”
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Political contestation about international economic agreements: Lessons for the Canada-UK trade relationship after Brexit
Achim Hurrelmann, Carleton University;
and Ece Özlem Atikcan, Carleton University;
Co-applicants: Crina Viju, Carleton University; and Adam Chalmers, King’s College London
Synopsis:
In recent years, international economic and trade agreements—such as the Comprehensive Economic and Trade Agreement between Canada and the European Union—have generated considerable public controversy. As Canada and the UK prepare to negotiate their post-Brexit economic relationship, it is essential to understand the conditions that make such agreements politically contentious. With this knowledge, policy-makers can consider how they might channel controversy into impactful, evidence-based, public debates as part of the trade policy process.
This knowledge synthesis project will identify research strengths and gaps in this emerging field of inquiry, and consider why some international agreements and specific issues become more politically contentious than others. Findings will support policy-makers as they make crucial governance decisions during upcoming Canada-UK trade negotiations.
“This project assesses the state of research knowledge on the conditions under which international economic agreements—such as a future Canada-UK trade agreement—become politically contentious and trigger societal debates that reach beyond expert circles.”
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Trade, intellectual property and innovation: Policy implications for the Canada-UK relationship after Brexit
Olena Ivus, Queen’s University;
and Marta Paczos, National Institute of Economic and Social Research
Synopsis:
In 2016, both Canada and the UK ranked among the world’s top 15 payment recipients from intellectual property licences. Intellectual property rights (IPR) are usually the most difficult clauses to negotiate in trade agreements, as they are politically sensitive and require thorough evidence.
This project will focus on the intersections between IPR protection, innovation and international trade, in the context of Canada-UK relations and Brexit. It will include a comprehensive review of trade-related impacts of IPR clauses in recent and relevant regional trade deals. Results will also inform policy-makers about sectors and occupations likely to benefit from stronger IPR protection.
“Canada and the UK will benefit from the creation of a space in which to discuss the best ways to balance IPR protection and innovation and technology diffusion in the new, digital era.”
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Opportunities for post-Brexit trade expansion between Canada and the UK: A circular economy perspective
Deborah de Lange, Ryerson University;
and Paul Sheeran, University of Winchester
Synopsis:
Traditional, linear trade economies often generate significant waste in extraction, production, distribution and consumption processes. An alternative, circular economy approach seeks to integrate the global economy with production and processes that avoid waste; enhance, rather than degrade, the environment; and maintain social justice.
Building on the European Commission’s focus on circular economy, this same, sustainable approach could be applied to enhance future trade between Canada and the UK (valued at an estimated C$27 billion in 2017).
This project will synthesize existing literature and explore the potential of taking a circular economy approach in UK-Canada trade relations. The research team will identify gaps in knowledge about trading relationships and the potential impacts and trade-offs of the circular economy approach. Results will inform future targeted research, identify potential early industry candidates, and outline a model that could be applied to other bilateral trade relationships.
“Overall, the proposed research outputs will be significant, as circular economy and upcycling concepts are relatively new, from policy and implementation perspectives, especially in regard to developing insights for international trade.”
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The legal structure of the trading relationship between the UK and Canada after Brexit
Armand de Mestral, McGill University;
and Lorand Bartels, University of Cambridge
Synopsis:
The UK and Canada share a close legal and institutional history. Like the UK, most of Canada uses the common law legal tradition. The countries also share many basic constitutional principles. To ensure continuity in trade between the countries post-Brexit, policy-makers, industry and the wider community will need more clarity on the legalities governing trade in goods and services.
This project will study how much existing international legal arrangements and relevant domestic laws already provide for a satisfactory trading relationship between the UK and Canada. The researchers will also explore various bilateral options, such as transitional adoption of the Comprehensive Economic and Trade Agreement as an agreement between the two parties; or adoption of a new, bilateral agreement. The project will also explore the UK’s position in the World Trade Organisation after the country leaves the European Union..
“The general objective of the review is to give policy-makers, the business community, journalists and the general public an understanding of the relevant issues posed, and of the state of current information on the subject.”
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The roles of provinces and devolved administrations in the negotiation and implementation of a Canada-UK trade agreement
Stéphane Paquin, École nationale d'administration publique, Montréal;
and Ian Wooton, University of Strathclyde
Synopsis:
The roles and influence of substate actors (such as provinces and devolved administrations) in international trade negotiations pose fundamental governance issues. The Canada-European Union Comprehensive Economic and Trade Agreement was the first Canadian free trade deal where Canadian provinces were directly involved in every stage of the negotiations, including in formulating the negotiating mandate itself.
In contrast, it is unclear what role the UK’s devolved governments and parliaments—Scotland, Northern Ireland and Wales—may have in negotiating, influencing or implementing a future bilateral trade deal with Canada. This project will explore the issue by comparing the roles subnational governments have played—and could play—in other such trade negotiations. Findings will offer important insights on how bilateral Canada-UK trade negotiations could create innovative approaches for meaningfully involving substate actors.
“For proponents of the multilevel governance approach, conversely, the evolution of trade negotiation has rendered the centralization approach obsolete …. Subnational governments often play important roles, even if restricted to ‘commercial paradiplomacy’ or the implementation of international agreements.”
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Charting the sources of Brexit: Lessons for Canadian-UK relations
Krzysztof Pelc, McGill University;
and Kenneth Shadlen, The London School of Economics and Political Science
Synopsis:
A growing number of studies show trade competition is the key driver behind attitudes about global governance. In the Brexit vote, areas in the UK with industries that are exposed to import competition were significantly more likely to vote to leave the European Union.
In the event of an economic downturn, Canada would not be immune to a backlash against globalization of the kind seen in the United States and the UK. This project will collect existing findings related to the Brexit vote, see if they apply in the Canadian context, and identify any potential impacts on Canada-UK relations. Researchers will also review the success of domestic redistribution schemes in the UK and Canada—including social insurance and trade adjustment programs—to dampen effects on those “left behind” by globalization.
“We know Canada is exposed to similar levels of trade competition as the UK, and that it has work to do in helping alleviate the resulting labour dislocation …. While labour dislocation driven by trade competition is correlated with backlash, there is also considerable evidence that these sources of discontent can be successfully addressed through domestic redistribution schemes.”
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The (new) geography of international trade and investment: Exploring the extent to which distance matters in the establishment of economic relations between Canada and the UK
Daniel Shapiro, Simon Fraser University;
and Saul Estrin The London School of Economics and Political Science
Synopsis:
In the wake of the uncertain renegotiations of the North American Free Trade Agreement and Brexit, both Canada and the UK are looking to diversify their trade and investment partners in more distant countries.
Studies in economic geography and business tell us that distance matters: not only physical distance, but also cultural and institutional distance. Evidence suggests that bilateral trade and investment flows are greater when countries share a common border, language and institutional structures. This explains why so many agreements are regional.
This project will explore whether these claims still hold today. Researchers will survey recent studies and engage stakeholders across sectors to identify the impacts distance has on countries’ abilities to establish strong trade and investment ties with more distant partners. The researchers will focus on the potential centrality of cities. They will identify knowledge strengths and gaps on distance and cross-border businesses in both Canadian and British scholarly literature. Their goal is to improve the international competitiveness of both Canada and the UK.
“The question we will address is whether these stylized facts about the relevance of distance have changed in a more globalized and urbanized world, in particular one where technology may make all forms of distance less relevant.”
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