A few thoughts on how Brexit is likely to affect the UK economy in 2021 - with the caveat that much remains uncertain 1/

Many Brits live under the false impression that the UK has a Special Relationship with the US. In reality, it's far more transactional, especially for the Americans. This delusion is especially dangerous as post-Brexit UK seeks a new place in the world

While the two do have a very close relationship on security and defence built on post-war efforts, it would be foolhardy to expect any US president to place much emphasis on the UK's economic interests over any other third country

The problem Boris Johnson has is that a close relationship with the White House is more important than any time since the war, given the UK's new status outside the EU. What a headache, then, that the US is having an election with 2 v different candidates

On one hand: Trump likes Brexit, dislikes the EU and might see benefit in disrupting the EU by teaming up with the UK in a way that helps the UK economically. However, Trump is wildly unpopular in the UK and Boris does not want to be seen as his best mate

On the other: Brits are generally more pro-Democrat & more pro-America when a Dem is in the White House. However, Biden clearly does not support the UK's Brexit position, especially when it comes to Northern Ireland.

It's been another torrid week at the border - inundated customs agents, goods stuck for days, companies buckling under the paperwork 1/ https://t.co/2A301guhB6 w/ @lizzzburden

Take Branimir Vuckovic, 45, who runs goods between the U.K. and EU. He spent this week stuck in Kent because he couldn't find a customs broker to do his Brexit paperwork. Even with traffic levels below normal, the system is being overwhelmed 2/

The government has admitted this problem itself. On a Q&A with businesses on Thursday, Heather Jones from the Border Delivery Group said: `We are starting to realize that customs agents’ capacity and capability is being extremely stretched' 3/ 🚨

Eddie Maybank, an independent customs broker, says he's been having a breakdown. He's forwarding inbound queries on to other agents in Dover, but they've told him to stop. `I’m inundated, and so is everyone else,' he said 4/

UK-Ireland trade has been badly affected, particularly food shipments. Stephen McAneney of Allied Fleet Services in NI said he saw consignments of potatoes, apples and cream being destroyed at ports because they lacked the right documents 5/

Here is thread with few facts relevant to current drama on Brexit deal or rather more likely NO DEAL - FOR NOW!
1.) If we have to go to ‘no deal’ (/Australia deal) we will be doing what most members of World Trade Organisation (WTO - covering virtually every country in world) do.

2/ 2/3rds of trading in world is done under WTO rules. USA exports more than UK does to EU but does so under WTO rules; so does China.
2.) If tariffs have to be imposed under ‘no deal’ WTO rules, the EU will pay £12bn in tariffs a year and the U.K. £5bn (ref: Civitas) -

3/ (ref: Civitas) - because tariffs hit mostly agricultural EU goods, such as 40% on cheeses & 12% on wine;
3.) The £12bn income from tariffs will come to UK Treasury, not Brussels. Effectively these will be UK consumer taxes that could perhaps go towards reducing COVID debt?;

4/ 4.) 43% of UK exports do yes go to EU; but this is small proportion of our actual economy: only 7.5% UK GDP are goods exports to EU; 13.5% with services. Only 8% UK companies even trade with EU. (@BBCNews please show balance on this). Most of our trade is internal within UK.

5/ over 2/3rds (SNP take note!); so tariffs will effect a small proportion of UK exports (though some sectors will be hit hard;
5.) By definition, 57% of U.K. exports go to Rest of the World. Growth outside of Europe is forecast to be 90% of all growth over next 15-20 years.