Not end of the world if Brexit is not followed by EU trade deal: WTO chief

The head of the World Trade Organisation (WTO) on Sunday said it would not be "the end of the world" if Britain failed to reach a post-Brexit trade deal with the EU, but there would be costs.

Roberto Azevedo told the Sunday Telegraph newspaper that although Britain would be better off with an agreement, the impact of falling back on WTO rules would be "manageable".

"About half of the UK's trade is already on WTO terms -- with the US, China and several large emerging nations where the EU doesn't have trade agreements," he said.

"So it's not the end of the world if the UK trades under WTO rules with the EU."

Britain intends to leave the EU's single market and customs union when it withdraws from the bloc in March 2019, but hopes to reach a free trade agreement (FTA) with Brussels before then.

However, trade talks have yet to formally start, and without a deal, bilateral trade would likely be subject to higher WTO tariffs as well as other barriers such as increased red tape.

"If you don't have a fully functioning FTA with the EU, there could be rigidities and costs -- but it's not like trade between the UK and EU is going to stop," Azevedo said.

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Japan's Shinzo PM Abe reaffirms conviction that TPP benefits Asia-Pacific

Japanese Prime Minister Shinzo Abe's conviction that a Trans-Pacific Partnership (TPP) pact will help bring prosperity to the Asia-Pacific region is unaltered, he said on Tuesday.

After US President Donald Trump pulled out of the 12-nation pact, Japan has been exploring options to revive the pact without the United States, hoping it can eventually convince Trump to reconsider.

Negotiators from the remaining 11 members have sought ways to resuscitate talks and deepen economic ties without a United States that appears increasingly suspicious of multilateral deals.

Abe urged global policymakers not to view trade as a "zero-sum" game, but instead seek to remove barriers that hamper innovation from crossing borders.

"I don't think TPP is losing momentum," Abe said at a seminar hosted by the Wall Street Journal newspaper in the Japanese capital.

"Japan wants to exert leadership so that we can steer the debate toward a clear direction at a ministerial meeting in Hanoi."

However, Abe said he did not rule out the chance of signing a bilateral free trade agreement (FTA) with the United States, an option Washington favours.

"It's among the various options available for Japan," he added. "But we need to discuss more what's best for Japan."

In a sign of hope for Japan, new US Trade Representative Robert Lighthizer will attend a meeting of trade ministers from the 21 Asia-Pacific Economic Cooperation (APEC) countries on Thursday and Friday in the Vietnamese capital of Hanoi.

Many TPP signatories are expected to attend.

Japan's economic revival continues to be Abe's top policy priority, he added.

"We're unwavering in standing ready to continue deploying the three arrows of fiscal, monetary and structural measures" to end deflation, Abe said.
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