BC BREXIT
Saved by @Jacobtldr

Brexit. UK-EU talks. Let's try to explain why we're in such a state, of increased risk of no deal, moving away from the fish and playing fields which are the detail but not the answer, to differing philosophies and divorce parallels that might just help... 1/

 First, with apologies to those concerned, we need to go beyond those saying this is the inevitable path to deal / no-deal. Half of them will be right and I'll definitely be wrong (don't worry, I'm hedged in wine bets), but it wasn't inevitable, typical, or necessary. 2/
I'll also ignore the content of any deal, which has been clear for months, the UK compromises on level playing field, the EU on fish. Something so obvious really isn't the fundamental issue. Could, as some not noted for their perspicacity have said, be done in an afternoon. 3/
Some truth in the idea that flounces and playing the tough cop are a part of trade negotiations. But equally as we're in about the 5th pass of these, I think it has ceased to be helpful. Either side could already have cut the deal having shown their toughness. 4/
Some fundamentals then, that we've forgotten. First, the trade deal that will lead to much less free trade than before. The incentive structures, the ability to create a win-win, are inevitably going to be different to a normal deal. 5/
Next, trade deals are a closer binding based on trust, they may not even seem to provide much greater access than WTO, but are a symbol of both sides intention to work together. Both parties accept the rules as part of the trust. To put it mildly, absent between UK and EU. 6/
Next, UK oscillation on preferred outcome (a mild preference for a deal) compared to the EU as a process driven trade negotiating machinery, which assumes both siudes want a deal that can be done. I think this contrast explains a lot of friction. 7/
Odd one, but UK treaty literalism versus EU agreement concepts. Not that the EU don't want good treaty text, but in operation it is the framework for what happens, not the last word. Whereas the UK seem to be concerned about exact text pinning us down. 8/
I'm afraid the approach of the UK government to the Northern Ireland protocol, leading to the Internal Market Bill, has shown the problem of the selective literal reading. Instead of assuming we can suitably fudge operations we are trying to pin down exact meanings. 9/
Perhaps most of all we need to be thinking of post divorce emotions. An EU wanting to go through a careful process to arrange all the details. The UK wanting it all over as quickly as possible, with as few future constraints as possible to show it really is all over. 10/
Yesterday's PM letter a classic emotional outburst you could imagine in a divorce situation, sort of "I have done everything you asked and you are still not being in any way fair so I am going to go my own way and I will be fine and I really don't need you" etc... 11/
The EU cannot I would suggest deal with such UK emotions except by reverting to process, which probably isn't very helpful. But the UK is so emotional that it is struggling to accept that the EU really does have the right to request some rules for the future. 12/
So should the UK and EU abandon the trade talks and go for intensive divorcing couples therapy instead? Given peacekeepers in international diplomacy tend to be associated with ending wars we probably don't want to go there. 13/
However if the problem is more about significant differences in philosophy that led to the divorce in the first place, then the answer probably isn't just to have another conversation about fish. Or another row. It is going to be something different. 14/
Last year we had Leo Varadkar sweet-talking Boris Johnson, the main difference to now being that there was only one real issue to resolve, and both parties had strong grounds for an agreement. Result, deal. Not sure it could work again. 15/
Ultimately what we seem to need is the UK to be reassured the EU doesn't want to set our rules, and the EU to be reassured that the UK isn't going to cheat. And that won't come in the text, it can't. Because these are the deep seated fears with truth in them. 16/
I don't know how you provide these levels of assurance in a couple of weeks, sufficient to overcome the not insignificant challenges of a UK government overturning planned legislation and the European Parliament approving a deal. But that is what is needed. 17/
Right now if the UK and EU signed a trade deal it wouldn't last. You couldn't insulate it against mutual suspicion. At the same time no deal increases the mutual suspicion and is costly for both sides, and let's not get into who bleeds more, pointless conversation. 18/
So as far as I can see it is 2 weeks for the UK and EU, or frankly someone else they trust if there is anyone, to find a new way to communicate. Actually Johnson was right, this is the end of the road without change. But wrong, as it needs both sides. Over to... someone? 19/ end

More from David Henig

David Henig
David Henig
@DavidHenigUK
How to make sense of the increasing number of UK-EU trade disruption stories?

In short - outside of a single market product checks and people working restrictions are inevitable. And outside a customs union you will have tariffs and / or rules of origin.

Detail ---> 1/

The UK decided to leave a Customs Union. Within that Customs Union, no tariffs, just a common external tariff or preferential rates for bilateral deals or developing countries. Hence, distribution hubs in one country for all make a lot of sense. 2/

Outside a Customs Union our choice was tariffs under WTO rules or remove them subject to rules of origin with a deal. We chose the latter, but it means we can't just import from China, rebadge, and get zero tariffs from the EU. As we could until December 31. 3/

Net result of being outside of the Customs Union - it no longer makes sense for the UK to be a distribution hub for the whole of Europe. Particularly when so many neighbouring countries remain in it. No trade deal changes that. 4/

Now, product checks, of the sort causing problems for food exporters (see Scottish seafood). In the single market, we shared regulations, so a safe product in the UK was safe in France. No inspections. We chose to leave that system, as we want to change some regulations. 5/
BREXIT
David Henig
David Henig
@DavidHenigUK
The first working day of the new UK-EU relationship. We're going to hear a lot this year from all sides (remain and Brexit in UK, EU, etc) using any possible scrap of evidence. But what we need to look for is trends, over time, so a few to think about in this thread... 1/

Obvious disruption or reduction to UK-EU trade flow. Here we may be thinking e.g. of a permanent 10% fall in traffic, or regular queues, or indeed no change. And apart from goods, the same with individual travel, for work, residence etc... 2/

As a reminder we're not expecting permanent scenes like those of the week before Christmas when borders were closed. But 5-10% reductions in UK-EU traffic would not seem to be out of line with economic forecasts of a hit to the UK economy. 3/

Then we'll need to look at whether UK-EU trade is being substituted by UK-non EU trade. This probably should happen to a degree, and in theory efficiencies could come this way. But its also possible that all UK trade falls, with the UK no longer an EU entry point. 4/

Inward investment is another key post-Brexit indicator. There isn't a single obvious data set here, but the impression of the last four years has been a fall off in manufacturing, but not in services, particularly tech. Continuation would suggest economy tilting to services. 5/
BREXIT
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David Henig
David Henig
@DavidHenigUK
Delusional. And no way to run a country. Far higher barriers to trade with the EU from Friday. And still subject to EU influence on our laws. To deny this is also to deny the ability to tackle the problems we will face.

We ended up with particularly high level playing field conditions in the EU deal because the UK didn't take the subject seriously. We got a worse deal on fish than anyone thought possible, and got nothing in return. All because of cakeism. Or patriotism as they call it.

Now we face higher trade barriers to our nearest market, which means our businesses need to be even more competitive to overcome them and succeed. Is that acknowledged?

Our neighbours, the EU, use all manner of pressures to keep neighbours in line in terms of trade. That financial services equivalence, pity if you didn't get that. Data equivalence, have 6 months free if you don't change your laws while we make you sweat...

Northern Ireland, as we repeat endlessly, Johnson cakeism of no checks? Somehow no longer mentioned after the EU got what they wanted. See also, fish, level playing field. EU priorities, EU won. Johnson cake, all gone, not eaten.
GOVERNMENT
David Henig
David Henig
@DavidHenigUK
As promised, a little story. Of how the EU ask of the UK on the level playing field is indeed new, how that came about, and why we should have been able to deal with this a lot better. And how, indirectly, David Frost is one of the reasons. Beware, contains analysis... 1/

Let us go back 5 years to the height of Transatlantic Trade and Investment Partnership (TTIP) discussions. As you may recall, by 2015 TTIP was about as popular in the EU as allegedly the EU is these days in the red wall. What, thought the EU and Member States, could be done? 2/

TTIP will be more popular, declared more than one insider, if we show there are tough labour and environment protections against undercutting by the nefarious and probably untrustworthy US. That, optimistically they said, will get NGOs on side. 3/

But there was a problem with EU level playing field provisions in 2015. The unit of DG Trade responsible absolutely did not believe anything should be enforceable. Pages of loose commitments, fine. Add more! But apparently enforcement was best done through a good chat. 4/

Now such soft-touch EU enforcement of level playing fields was probably designed particularly for developing countries, where sanctions were seen as unfairly penalising struggling business and individuals for the actions of a terrible government. Not the US. 5/
EU & UK
David Henig
David Henig
@DavidHenigUK
Not the easiest to follow, but for those interested in the big picture of trade relations between US, EU and China this exchange between @alanbeattie and @IanaDreyer is an essential read. Real debate on key issues, and good points on both sides.


Also reading this from @gideonrachman on EU-China. My view (cynically?) - that EU-China is a deal that makes a lot of sense given a probably unresolvable trade policy superpower triangle with the US, and best for the EU to move while China will.

The US and EU roughly agree on China that it should do some things differently, but not really the details of what those are. Meanwhile the EU and US have long standing trade policy differences, which neither (or their key stakeholders) prioritise resolving.

For the EU, the China deal has sent a message to the new US administration, you can't just tell us what to do. And delivered some (probably marginal in reality) benefits to business. For China, this is the 3rd deal with EU or US in 12 months. Pretty clear strategy there.

The key assumption that lies at the heart of too much writing on EU-US relations is that the two should cooperate on trade. After 25 years of largely failing to do so, I'd suggest we might want to question that a bit more deeply.
ECONOMY

More from Brexit

George Riddell
George Riddell
@GeorgeMRiddell
Been a lot of discussion recently around services trade in the deal between the UK and EU. Having read through the agreement over the past couple of days, my impressions👇

First off, services is definitely included. Question for service providers, is will it be enough?

1/N

My overall impression is that the EU has offered among the best in class for its FTAs similar to Canada and Japan.

But this access is a far cry from access to the Single Market and how is constructed as part of a trade agreement for the EU reflects that.

2/n


Unlike for goods trade, once you've got a product through all the customs and regulatory procedures into the EU, it can be sold anywhere in the EU, or its "entered circulation".

For services trade, that isn't the case. Its still done on a member state by member state level.

3/n

This is even true in the trade agreement itself where although the provisions set out in the Services and Investment chapter sounds awfully good - lots of principles about the freedom to establish and allowing the cross-border trade in services.

It's only when...

4/n

You get to the annexes and you realise both the EU and individual member states have put entry conditions across huge areas of different services sectors both now (existing measures) & in the future. Don't worry too much about the future reservations, it's the existing ones.

5/n
BREXIT
Steve Peers
Steve Peers
@StevePeers
As the transition period ends, the #BrexitDeal applies from tomorrow. But there's also a parallel significant legal change - most of the rest of the withdrawal agreement starts to apply. A thread on the legal issues in the rest of that agreement.


The citizens' rights provisions of the withdrawal agreement (on EU citizens who moved to the UK, and UK citizens who moved to the EU, before the end of the transition period) start to apply.

Annotation and detailed analysis of those provisions here:

After today, UK citizens newly moving to the EU, or EU citizens newly moving to the UK, are in principle governed by national law (partly harmonised by the EU, on the EU side).

However, the #BrexitDeal contains some provisions on visas for service providers.

The #BrexitDeal also refers to the matching unilateral decisions of the EU and UK to waive a visa requirement for short tourist visits. Analysis of the EU law on that issue here:

UK citizens resident in the EU on the basis of the withdrawal agreement (or who move to EU in future) should be covered by the EU law on long-term resident non-EU citizens, which provides for a limited form of mobility between Member States. Analysis here:
BREXIT
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john milbank
john milbank
@johnmilbank3
This very short article by Jeremy Cliffe is the best thing I have ever read on Brexit and the EU. It pivots on the contrast between Delors’ and Thatcher’s authentically provincial Christian visions and suggests the battle in Britain between the two is not over.


Thatcher: Protestant believer in the totally free market and absolutely sovereign centralised nation state. Delors: Catholic believer in third way personalism, corporatism and federalism. Individualism versus relational love. Heterodoxy versus Orthodoxy.

The article useful gives the lie to the idea that the Catholic vision of the EU has altogether vanished even though it is weakened. Delors wanted a social dimension to the free market and single currency and yet lexiteers laughably insist the EU is more neoliberal than the U.K.!

Subsidiary federalism is a doctrine of democracy and human fraternity. State sovereignty is a doctrine of naked power. It is a face of Antichrist. Leviathan.

Those combined that democracy can only be inside a single state fail to power just how much of private law and evermore so is necessarily international. Thus if political institutions don’t extend over borders there can be no democracy.
BREXIT
Buck Frexit! \U0001f1ea\U0001f1fa\U0001f49c\U0001f499\U0001f30d #FBPE #ElectoralReform
Buck Frexit! 🇪🇺💜💙🌍 #FB...
@Beany_1
Project fear - a media friendly term which at one stroke, mocked the expertise of those at many of the coal faces of Brexit and dismissed it with a sneer. Yet, just 9 days in, it looks very much like project fear predictions were true and should have been heeded.

Thread

Project fear was not a myth. It was the truth.


Project fear was not a myth. It was the truth.


Project fear was not a myth. It was the truth.


Project fear was not a myth. It was the truth.
BREXIT
Richard Bentall #FBPE #3.5% Project We Told You So
Richard Bentall #FBPE ...
@RichardBentall
1/19

I am pretty annoyed about Starmer's statement about FoM on the Marr Show today, but I'm still not sure what the thinking behind it is. If it's just that this is not the time to talk about EU allignment, fair enough, but it could have been expressed in a more nuanced way.

2/19

Because, rest assured, there will have to be a reallignment with the EU. This will be necessitated not only by the economics but also, most likely, by unfolding events in Scotland and Northern Ireland.

3/19

I am not convinced that complete endorsement of the Tory's Brexit is required to win back the red wall seats; its not what a careful analysis of polling says and it's, frankly, treating red wall voters as idiots while pandering to their supposed idiocy (pretty patronising).

4/19

Given the well-documented harms caused to border trade, UK-based European hub distribution centres, manufacturing (e.g. BASF) and fishing that have emerged just in the first week, it's pretty obvious that THIS Brexit can't be a success.

5/19

Indeed, given that these problems have emerged in a period when cross-border trade has been at a minimum we can bet that things are going to get much worse, as the odious Gove has admitted.
BREXIT

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Samayapuram Mariamman Temple is located in Samayapuram of
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Dr. Anandibai Joshi

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