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61. UK-EU regulatory divergence tracker Q3 2023

Author:
Joël Reland
Publication Date:
10-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
UK in a Changing Europe’s series of regulatory divergence trackers provide an overview of where and how the UK has used its regulatory freedoms to diverge from EU regulation. It identifies and analyses the most significant cases of divergence between the UK and EU which have taken place since Brexit. It explains what the changes are, what impact they are having, and likely further consequences. This is the ninth edition of the regulatory divergence tracker, covering developments from August to October 2023. There are six cases of active divergence (where the UK, or some part of it, changes its rules); nine of passive divergence (where the EU changes its rules and the UK, or some part of it, does not follow); two of delayed divergence (where active divergence is delayed); and five of active alignment (where the UK takes steps to align more closely with EU rules, systems or programmes). In a what is now a recurring theme under Prime Minister Rishi Sunak, the UK has opted to delay some major cases of upcoming divergence.
Topic:
European Union, Regulation, and Divergence
Political Geography:
United Kingdom and Europe

62. UK-EU regulatory divergence tracker: eighth edition

Author:
Joël Reland
Publication Date:
07-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
UK in a Changing Europe’s series of regulatory divergence trackers provide an overview of where and how the UK has used its newfound regulatory freedoms to diverge from EU regulation. It identifies and analyses the most significant cases of divergence between the UK and EU which have taken place since Brexit. It explains what the changes are, what impact they are having, and likely further consequences. This is the eighth edition of the UK in a Changing Europe’s regulatory divergence tracker, covering developments from April to July 2023. There are eleven cases of active divergence (where the UK, or some part of it, changes its rules); eight of passive divergence (where the EU changes its rules and the UK, or some part of it, does not follow); two of passive convergence (where the EU takes steps which align with UK rules); three of managed divergence (where the UK and EU make joint efforts to manage the implications of divergence); and one of internal divergence (changes in rules between different parts of the UK).
Topic:
European Union, Regulation, Brexit, and Divergence
Political Geography:
United Kingdom and Europe

63. UK-EU regulatory divergence tracker: seventh edition

Author:
Joël Reland
Publication Date:
05-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
UK in a Changing Europe’s series of regulatory divergence trackers provide an overview of where and how the UK has used its newfound regulatory freedoms to diverge from EU regulation. It identifies and analyses the most significant cases of divergence between the UK and EU which have taken place since Brexit. It explains what the changes are, what impact they are having, and likely further consequences. This is the seventh edition of UK in a Changing Europe’s regulatory divergence tracker, covering developments since January 2023. There are seven cases of active divergence (where the UK, or some part of it, changes its rules); two of active convergence (where the UK, or some part of it, aligns to EU rules); 17 of passive divergence (where the EU changes its rules and the UK, or some part of it, does not follow); and one of internal divergence (changes in rules between different parts of the UK). In addition, the Windsor Framework is significant case of ‘managed divergence’: a UK-EU agreement which alters the regulatory border between Great Britain (GB) and Northern Ireland (NI), as created by the Protocol.
Topic:
European Union, Regulation, Brexit, and Divergence
Political Geography:
United Kingdom and Europe

64. UK-EU regulatory divergence tracker: sixth edition

Author:
UK in a Changing Europe
Publication Date:
02-2023
Content Type:
Special Report
Institution:
UK in a Changing Europe, King's College London
Abstract:
UK in a Changing Europe’s series of regulatory divergence trackers provide an overview of where and how the UK has used its newfound regulatory freedoms to diverge from EU regulation. It identifies and analyses the most significant cases of divergence between the UK and EU which have taken place since Brexit. It explains what the changes are, what impact they are having, and likely further consequences. This is the sixth edition of the divergence tracker, covering developments since October 2022. There are six cases of active divergence (where the UK or some part of it changes its rules), 13 of passive divergence (where the EU changes its rules and the UK, or some part of it, does not follow), two of active alignment (where the UK and EU take the same regulatory steps in parallel), and five of delayed divergence (where either side postpones an upcoming case of divergence). This edition of the tracker finds that the UK has engaged in less active divergence over the past quarter. This is due in part to political instability, but also to Prime Minister Sunak’s emphasis on calming the markets and projecting a wider sense of political stability. The new administration has signalled its ambition to reform EU legislation, though in a more targeted manner than under the two preceding premierships.
Topic:
European Union, Regulation, Brexit, and Divergence
Political Geography:
United Kingdom and Europe

65. Understanding the ASEAN Digital Economy Framework Agreement: A Means to Support ASEAN Integration

Author:
Mima Sefrina
Publication Date:
04-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
The coronavirus disease (COVID-19) pandemic has accelerated the importance of digital technologies in the economy, particularly in e-commerce and digital financial services. Recognising the importance of digital technologies for economic recovery, the Association of Southeast Asian Nations (ASEAN) leaders signed the Bandar Seri Begawan Roadmap in 2021, which laid the foundation for the integration of the ASEAN digital economy in three phases – recovery, implementation, and transformation – and affirmed their interest in the establishment of a Digital Economy Framework Agreement (DEFA). The DEFA aims to deepen existing digital economy cooperation and ensure the interoperability of digital economy systems. The formulation and signing of the DEFA will require the provision of flexible timelines and technical assistance, as the ASEAN Digital Integration Index shows that ASEAN is still in the early stages of digital economy development and that ASEAN Member States are at different levels of readiness for digital economy integration.
Topic:
Governance, Regulation, Digital Economy, Regional Integration, and ASEAN
Political Geography:
Southeast Asia

66. Development of the Blue Economy in Viet Nam

Author:
Vo Tri Thanh
Publication Date:
06-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam is exploring various models to promote long-term economic growth and sustainable development, including the blue economy. Viet Nam’s policy documents have no formal definition of the marine economy or the newer concept of the blue economy. However, the policy documents have increasingly captured the essence of the blue economy, especially related to sustainable development. While lacking frequent updates and sufficient scope, the available statistics show the importance of the marine economy in the country. Viet Nam has various advantages for blue economy development, including high levels of sea traffic, a large sea area, a long coastline, and abundant marine resources. New opportunities for blue economy development can arise from consumers’ attention to sustainable development, improvement of the related legal framework, and cooperation with partners and foreign investors. However, Viet Nam needs to improve the awareness of local authorities and people, strengthen institutions for blue economy development, and upgrade the capacity to forecast and warn of natural disasters and climate change at sea, including via international cooperation.
Topic:
Governance, Regulation, Sustainability, ASEAN, and Blue Economy
Political Geography:
Vietnam and Southeast Asia

67. Malaysia’s Blue Economy: Position, Initiatives, and Challenges

Author:
Abdul Hafizh Mohd Azam, Muhamad Rias K.V. Zainuddin, and Tamat Sarmidi
Publication Date:
07-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Malaysia leverages the economic activities in and around its oceans, seas, and coastal areas, as its maritime space is double the country’s land area. The marine-based or blue economy contributes about 23% of Malaysia’s GDP. Realising the importance of the blue economy led Malaysian policymakers to incorporate the concept of the blue economy in the Twelfth Malaysia Plan, which was developed in consultation with relevant ministries and organisations. Although the blue economy has been identified as a key area of growth for Malaysia, its development faces numerous challenges such as the absence of a comprehensive national ocean policy and marine spatial plan, overlapping jurisdiction amongst government agencies, and shortage of labour. Thus, a systematic approach is necessary to analyse the gaps in the ‘8i-ecosystem’ to ensure the effective development and management of Malaysia's blue economy. To ensure that the initiatives for the blue economy in Malaysia are on track and delivering the intended outcomes, appropriate monitoring and evaluation approaches and mechanisms must be in place.
Topic:
Governance, Regulation, Services, Trade, ASEAN, and Blue Economy
Political Geography:
Malaysia and Southeast Asia

68. Developing the Blue Economy in Indonesia

Author:
Keanu Can Can and Teguh Dartano
Publication Date:
08-2023
Content Type:
Policy Brief
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
During Indonesia’s chairmanship of ASEAN in 2023, it has highlighted the blue economy as a key sector for the region’s sustainable future. A greener and bluer economy requires both environmental and societal balance. In prioritising the sector, Indonesia recognises both the steep challenges and the abundant potential associated with the blue economy, alongside the need for international and inter-sectoral cooperation to fully leverage the sector’s capacity for a more inclusive and equitable future. This brief explores Indonesia’s existing progress in harnessing its blue economy, what challenges lie ahead, and what strategic initiatives Indonesia must undertake to pave a pathway towards a blue economic transformation.
Topic:
Infrastructure, Governance, Regulation, and Blue Economy
Political Geography:
Indonesia and Southeast Asia

69. Productivity Effects of Viet Nam’s Rice Land Restrictions

Author:
Peter Warr and Huy Quynh Nguyen
Publication Date:
03-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Viet Nam’s 1986 programme of market-oriented economic reforms did not include the freedom of farmers to choose their crops independently. Large areas of land remain restricted to rice production. This paper studies the effects of this policy on agricultural productivity, using panel data from the Viet Nam Access to Resources Household Survey (VARHS), covering the years 2008 to 2016. The econometrics uses fixed effects methods with and without the additional use of instrumental variable methods to allow for the possible statistical endogeneity of the restrictions. The findings are that the crop choice restrictions reduced the overall productivity of annual crop land by about 5%, reduced the overall productivity of farm labour by about 8% and reduced the mean incomes of farm households by 5%–6%, implying increased levels of rural poverty. Moreover, rice output would have been no lower if the restrictions were removed.
Topic:
Agriculture, Development, Governance, Regulation, Land, and Productivity
Political Geography:
Vietnam and Southeast Asia

70. Divergence in Non-Tariff Measures and the Quality of Traded Products

Author:
Doan Thi Thanh Ha, Kunhyui Kim, and Mahdi Ghodsi
Publication Date:
05-2023
Content Type:
Working Paper
Institution:
Economic Research Institute for ASEAN and East Asia (ERIA)
Abstract:
Non-tariff measures (NTMs) constitute a grey area where trade policy meets public policy goals. NTMs comprise a diverse set of regulatory policy measures, including testing and certification, rather than traditional international trade policy measures such as tariffs or tariff-rate quotas. Regulatory NTMs protect plants, animals, humans, and consumers from imported harmful products containing diseases; regulate the use of hazardous substances in production; ensure conformity with common standards; and protect the environment. Trade literature has focused on the impact of NTMs on trade flows, whereas few studies address the potential welfare-improving effects of these measures. This paper fills this gap by examining the relationship between NTM applications and the quality of traded products. Two questions are addressed. First, do more or additional burdens of NTMs in the foreign market incur a higher quality of exported products? Second, is the quality impact of NTMs in different sectors different between food and other manufacturing goods? We adopt a recently developed indicator to capture the additional requirements for exporters stemming from importers’ imposition of NTMs, and a quality estimator that controls for price. Our empirical results indicate that, overall, divergence in sanitary and phytosanitary (SPS) measures between the two trading partners reduces the quality of traded goods. Furthermore, while the divergence in SPS measures reduces the quality of traded goods in the manufacturing sector, the divergence in technical barriers to trade shows no statistically significant impact on the quality of traded goods between the two trading partners. The results imply that additional costs from technical barriers to trade are negligible compared with those from SPS measures in the manufacturing sector.
Topic:
Regulation, Tariffs, Public Policy, and Trade
Political Geography:
Global Focus