BC BREXIT
Saved by @Alex1Powell

Quick intro to more analysis later - since Freeports are mentioned in this article worth making the point that it seems to me under the UK-EU deal that if the UK provides subsidies for them, or relaxes labour or environmental rules in them, the EU can take retaliatory action.

 There has never been level playing field content like this in a trade deal. The idea it is any kind of UK win, when the UK's opening position was no enforceable commitments whatsoever, is ridiculous. https://t.co/iXlWqzzrlu
The EU can take retaliatory action against the UK if we weaken labour standards, weaken pretty firm climate change targets, unfairly subsidise, or just in general seem to be out of line. There are processes to follow, but it looks like the PM did it again...
Final one for now. Quite how Labour gets itself in such a fuss about whether to support a deal with the strongest labour and environment commitments ever seen in a trade deal is a sign of just how far it hasn't moved on from leaving.
PS well... (sorry DAG). It certainly didn't have a good effect. And I think if we had settled LPF issues with the EU much earlier there is a good chance the conditions would have been far less stringent. By making an issue, we made it much worse. https://t.co/M4MYbjSbK3
Interesting... https://t.co/V4DimjmVPm
Oh, here's the text. Have a quick flick through it, be astonished at the dull legalese, wait for specialist takes. Well that's my plan anyway... https://t.co/sOAyoi5AKJ
So the UK signed up for ECJ as well, in a, shall we say, limited and specific way. Inevitable I think, but a powerful precedent. https://t.co/FEDCYJIWMM
I am incidentally very much looking forward to distinguishing between those in the ERG who drop their principled objections to follow the prevailing political wind (true followers of Johnson?) and those who note that Johnson never saw a UK red line he wasn't prepared to relax.
Rules of origin quotas. Catnip for @SamuelMarcLowe. https://t.co/3zVyDilYbC
Most of the year has actually been internal negotiations within parties, the crucial bit that the media misses. And in the UK the need for a deal to safeguard car manufacturing in the short term seems to have won in the end. https://t.co/YgahmntPQ0
This is the Brussels Effect.

(Incidentally I'm reading as well, but copying the best points I see from others). https://t.co/BsJQU3sJWP
Absolutely this (from a former negotiator). My evolving conclusion is that a UK failure to reach a realistic internal position sufficiently early on LPF and fish in particular has meant ending up with a worse deal than expected in these areas. https://t.co/sww9JNejEj
On even simpler, talking tough to the domestic gallery when competing with a very experienced trade superpower is a very poor negotiating strategy, particularly if your leader has form for folding when the going gets tough.
Alternate view. https://t.co/MNsl46xkV5
And more worth considering, especially in comparison to Conservative MPs with their Number 10 briefs claiming improbably the opposite. https://t.co/rgenUqwGmv
A weak deal for UK agricultural exporters in terms of checks. https://t.co/rJsp413oRK

More from David Henig

David Henig
David Henig
@DavidHenigUK
There is a sense of disbelief about the new trade problems between Great Britain and the EU / Northern Ireland. Which we need to lose. This is the new normal. And we face a difficult period of adjustment - immediate paperwork needs, and to longer term uncompetitiveness.

As we trade folk might have mentioned before, outside of the single market and the customs union of the EU, problems at borders are normal. Delays common. Great job of the Brexit supporters to find supposed experts claiming otherwise, but now back to reality...

Such delays at borders were in fact part of the origin of the single market, in the days when the Conservatives didn't see a contradiction between free markets and sovereignty. Such delays weren't really compatible with a supposed common market. So, the single market...

The delays and individual issues will ebb and flow. There will be new regulatory requirements in EU and UK affecting different products. But for UK and EU business as a whole it will mean UK-EU trade is more costly and less predictable, and there will be economic adjustment.

To put it bluntly, some UK firms will go out of business due to new border barriers. Some EU firms will stop supplying the UK, at a cost increase to UK consumers but a possible new opportunity for firms. This adjustment will take some time though.
EU
David Henig
David Henig
@DavidHenigUK
Plenty of talk this morning about how UK sovereignty is what is stopping an EU deal, that the EU want to impinge on this.

Sorry, the argument is totally bogus. It is a combination of EU hatred and cakeism dressed up in respectable clothing. 1/ n

How do we define sovereignty in trade deals? Complex question, so let's just look at this government. It believes in trade deals and membership of the WTO. These contain binding rules. Therefore for this government sovereignty and binding rules are compatible. 2/

Therefore sovereignty in terms of trade rules for this government is a relative concept either in content or partner terms. So when they say the EU proposals go too far is that because of what is proposed, or who it is proposed with? 3/

We haven't been told the detail. But with regard to the level playing field it is suggested that no country could sign up to a situation where not following the rules leads to tariffs being imposed. However we agree to this in the WTO and FTAs. So that is untrue. 4/

Fish is a slightly different matter, and it is being said that the EU proposal would deny the UK control of our waters. But definitionally that can't be true. We're showing our control through the discussion. We don't have to do a deal. 5/
UK & EU
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David Henig
David Henig
@DavidHenigUK
Ten days in and it seems the government's post-Brexit economic policy is to ignore reality, priority and choice, and just claim with no evidence that everything is going to be great. This, needless to say, is dangerous territory. Exhibit 1... 1/

Here's a good example of what is currently passing for UK economic policy. The theory the UK can be 'nimble' in regulations has been present since 2016. In 5 years nobody has found the detail. We presume others might have a similar idea. And trade needs regulations to align 2/


There will of course always be someone to blame. Usually the EU. Because they do indeed want to compete with the UK. This is not exactly surprising. A vague UK idea versus the bigger next door market (or indeed a big one over the pond). Who's going to win? 3/


Next, 'Global Britain' and specifically the Liz Truss speech in the Commons yesterday. To summarise, we are going to do trade deals on everything with everyone while still protecting UK industry and poor countries. Yup, more warm words and no priorities.

Useful example here. The long running EU-US trade battle over food, one claiming to be about quality, the other science. The UK solution. We'll do both! Fabulous, why did nobody think of this before? Unless they did, and found they still had to choose. Note other warm words 5/
BREXIT
David Henig
David Henig
@DavidHenigUK
Going to have to disagree with my learned friend here. If anyone moved on level playing field it was the UK, on the principle of a ratchet, or tariffs for divergence which was still being denied midweek. Changing the way in this might be achieved (many options) is insignificant.


It is the same "I move in principle you move in detail" shift we saw with the Northern Ireland protocol last year, when no PM could accept a border between GB and NI suddenly did, just as recently no PM would accept tariffs for divergence and seems to have done.

So, are we at deal yet? No, and it remains far from certain, but better than the gloom of Saturday. I still think the PM wants his ideal where everyone is happy, still hopes if only he can speak to Macron and Merkel he could get it, still to decide.


And even if there is a deal it is now too late for either business to adjust to it, or the EU to ratify it according to normal procedure. In both cases you'd think we'd need an extension, but there is a big shrug on this whole question. Nobody knows.

And so, yet again on Brexit, we wait. In particular, those who actually do the trade, the businesses we rely on, are forced to wait for a formal outcome while preparing as best they can. Let's see what happens.
FOR LATER READ
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

More from Brexit

Helene von Bismarck
Helene von Bismarck
@HeleneBismarck
While we await white smoke signalling a #Brexit deal, let us consider what the end of the transition period on 31 Dec (deal or no deal) will mean for the future of UK politics. Will the end of the Brexit process lead to the end of British #populism? I am very sceptical.
Thread 1/

This thread serves as an English summary and translation of a long essay I published in the Swiss @RepublikMagazin last week. Contrary to its title, it is not just about @BorisJohnson

British populism is a political method, not an ideology. It is not identical with Trumpism, even if it shares some of its traits. The populist method in the UK does not become redundant with #Brexit, because its use hasn't been limited to the UK's relationship with the EU.
3/

The populist method in the UK consists of two key elements:
1) the emotionalization and over-simplification of highly complex issues (such as Brexit, the pandemic, migration, culture or history)
2) the reliance on bogeymen ('enemies') both abroad and at home

4/

Populists depend on enemies, real or imagined, to legitimize their actions and deflect from their own shortcomings. There has been an obvious candidate for the enemy abroad since 2016: the EU. But once transition is over, this may, in the long term, become more difficult.
5/
BREXIT
Alan Beattie
Alan Beattie
@alanbeattie
The chart-topping band of @ChrisGiles_ @jimbrunsden (me on drums) have a piece up about the Brexit level playing field stand-off. But here's the thing: the opacity surrounding these (as so many) trade talks is making things much worse. Quick 🧵

One of the things that struck me talking to experts about this was a lot of hedging about "this is what I think the EU means" and "this is what the UK appears to believe". There's lots of jargon (non-regression, ratchet, equivalence etc) capable of multiple meanings. (2/n)

And even if the negotiators have been clear with each other about what they mean, they certainly aren't being transparent with their domestic constituencies: the EU member states and Westminster MPs aren't being given full details about exactly what's being proposed. (3/n)

There's an unhelpful culture of secrecy around almost all trade talks. Few texts are released along the way. The standard reason is so not to give away negotiating positions to the other side. This is, to use a technical WTO term, obvious bollocks. (4/n)

If you're not telling the other side what you're proposing, you aren't negotiating, are you? Duh. The function of secrecy is actually to hide from the public what's going on. But how are you supposed to build domestic consensus around a proposal no-one can see? (5/n)
BREXIT
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John Lichfield
John Lichfield
@john_lichfield
Scoop...Britain faces dearer electricity and occasional black-outs if it bans EU fishing boats from its waters after 2026. This de facto power over the UK power market is handed to the EU in the post-Brexit deal which MP’s will wave almost unread through parliament today. 1/10

The trade deal enshrines a link between continued EU access to British waters and UK frictionless access to the EU power grid and gas network. This has scarcely been noticed though it was mentioned and brushed aside by last night’s statement by the ultra-Brexiteer ERG. 2/10

The link – drawn to my attention by a senior EU source – is spelled out in dates, not words. The fisheries part of the deal grants EU boats continued access with a 25% cut in quotas over five and a half years until 30 June 2026. After that there are “annual negotiations” 3/10

The energy part of the agreement allows the UK virtually unchanged access to the continental electricity and gas markets. But that expires on exactly the same date as the fish deal - 30 June, 2026. After that (guess what?) there are “annual negotiations". 4/10

Coincidence? Not at all, my source says. The link is “more than implicit”. The energy deal “ends by default” unless both sides agree to extend it.
If the UK bans, or severely restricts, EU boats in British waters from June 30, 2026….easy access to EU energy will also end. 5/10
BREXIT
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
Dmitry Grozoubinski
Dmitry Grozoubinski
@DmitryOpines
1/ A challenge in parsing Brexit news is that businesses are facing overlapping types of challenges that can be difficult to separate.

The key questions are:
1⃣ Given the model of Brexit chosen, could this have been prevented, and by whom?
2⃣ Can it get better?


2/ To put those another way:

"If you knew everything you needed to know and did everything right, is your existing business and delivery model still viable and competitive?"

The answer to that question determines if for you the problem is Brexit, or how Brexit was delivered.

3/ Some of the challenges at borders could have been prevented while still having the exact same model of Brexit (No Single Market, No Customs Union, but an FTA).

That they're appearing is an implementation failure and you can fully support Brexit but still be pissed about them.

4/ Examples include:

1) Government guidance and IT systems being ready earlier and/or easier to navigate;

2) More support for businesses, and more affordable bespoke help;

3) More time to prepare and better government communication about what preparation actually requires.

5/ This thread you've all seen from Daniel Lambert the wine merchant (primarily) deals with problems in this category.

There's no policy reason he can't export his product, but the procedures are a nightmare to navigate and he's badly under-supported.
BREXIT

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"सु अस्ति येन तत स्वस्तिकं"
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Julien 🌲
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1/ there is this sense when you are young that your accomplishments need to be a list of things that seem impressive to others. A list of several items you did.

This isn't actually right, so here is another suggestion.

2/ I remember being 26 and writing about reading 52 books a year. I wrote blog posts about it. They got copied. It became "a thing." Now it's in Twitter bios. It looks impressive but it's insanely useless and I shouldn't have done it.

3/ what I should have known at that time is that only young idiots like myself, with no accomplishments, find list of tiny achievements impressive. Anyone who has actually done anything of substance doesn't gaf

4/ what is actually difficult, and worthwhile, instead is to do ONE single thing for a very, very long time. It's much harder and much rarer and results in outlier outcomes much more often.

Of course you can find this out too late if you are chasing the dragon of Ted talks etc

5/ if I had only worked on a startup for a year, I would've gotten nowhere, the same way that if you lift for 3 months, it achieves nothing. Everything good in life comes from perseverance, but at the beginning, you're just like "I need to be somebody!!!"
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Very famous Krishna Mandir where Bankey Bihari Ji is worshipped and looked after as a child.
Bankey means “Bent at three places”.
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