At today's Future Relationship with the European Union Committee - we're hearing from @CSBarnard24 that the deal has a slightly "alice in wonderland quality" about it - nothing really appears quite as it first looks. If you compare to what we had until 1 Jan, it falls short. 1/

🚨🚨🚨🇪🇺🇬🇧🚛🚒🇪🇺🇬🇧🚨🚨🚨 serious #brexit story alert - companies now starting to see penny drop on what rules of origin does to supply chains (food for example) but Brussels seems deaf to both EU & U.K. pleading. A bellwether? 😬 Stay with me. 1/


So first the problem: its a tad complicated but basically goods that are imported into UK and then 'hubbed' onwards into Ireland or other parts of the EU are facing full EU tariffs - this is particularly bad for food stuffs, which attract high tariffs. Why is this? /2

It's a function of the Rules of Origin clauses that mean that goods have to sufficiently "originate" in the UK to qualify for zero-tariff entry to EU (and vice versa).

But to qualify, you have to do something to the goods - process them or add value - not just punt them on /3

The brilliant @AnnaJerzewska does a better job than me of explaining, but the important thing is that this is a nightmare for companies that 'hub' /distribute products through the UK - and that's both EU and UK companies /4

So both the @Foodanddrinkfed and EU groups like @CAOBISCO_EU (chocs etc) say they want the EU Commission to fix this with a derogation/waiver that takes into account proximity and interdependence of EU/UK supply chains. /5

Update from MEP @PeterLiese, health spokesman for the largest party in the EU Parliament (thread):

He maintains #AstraZeneca is treating people in EU as "2nd class citizens" and that doses have gone from the EU to the UK.

"They gave 3 different explanations in less than a week"

Carrot: He's says objections are with AZ behaviour, not vaccine's efficacy

"There's been a lot of talk about AZ being a bad vaccine - very strange fake news in German media. It's definitely not true"

"If someone offered me AZ, and it’s my turn, I wouldn’t hesitate for a minute"

“The AstraZeneca vaccine has not as good data as the vaccines from BioNTech/Pfizer and Moderna but still it is a good vaccine. In October, we would have been happy to have a vaccine that has an efficiency well above 50%."

Stick: "AZ gave 3⃣ different explanations in less than a week why there is a shortage of supply on the European continent and why they want to deliver only 31 million doses instead of 80 million that they committed to in the contract until the end of March."

1⃣ "1st explanation was different supply chains. This is wrong because in contract with the EU, two plants in the UK are mentioned for the supply on the continent and at least until a few days ago the final finishing of the vaccine [for UK] has been in a plant in Dessau, Germany"