BC BREXIT
Saved by @CodyyyGardner

As @michaelgove admitted yesterday we are expecting significant disruption in our #trade flows with the EU in coming days. The fact he is willing to say this confirms what most of us feel, that problems are building. This thread is a summary of what I have learnt in the past week

 DISCLAIMER I run a trade body and spent the week in my back bedroom on the phone to members, reading the media and on zoom calls. I’m not on the ground and I am not in the operation rooms. So my info is second hand and partial. No one has a complete view. IT IS HIDEOUSLY COMPLEX
The first obvious problem is the number of different actors involved. On the commercial side - within 1 exporter there are multiple depts. There is also the buying company and the logistics company. They all have to sync. 1 load of goods involves multiple commercial actors.
On the government side its even more complex. In UK there are dozens of departments and agencies involved, and the same if not more in every member state of the EU. there are hundreds of thousands of decision makers involved.
They all have the same rule book though - YES true but its 1200 pages long and it's 15 days old - also - here's the thing with red tape, it's open to interpretation. (It's why lawyers tend to drive nice cars) and so being BORDER READY means different things to different actors.
Millions of people, working to the policies and objectives of thousands of organisations, learning how to meet and enforce rules for the first time.

Also when it comes to border paperwork - it is not one piece of paper or process it can be dozens.
One major thing from this week is seeing in practice the reality we knew in theory, that the border isn't one physical place.

1/ Hauliers are now a 'border' having to refuse to carry loads for unready customers

2/ customs agents are a 'border' - not enough and overworked
3/ vets are now a 'border' having to complete complex paperwork

4/gov agencies like APHA are now a 'border' as they have to issue paperwork

Everyone has either got a new job, or one that is exponentially bigger than it was last week - each one can stop or slow goods
The reality of this week is that people have done their best and have learnt a lot, but in many cases they haven't got it 100% and that will have been masked because 'non-compliant' loads has been waved through with a warning (did the warning get back to the right people?)
As the pressure mounts, the ‘get through the news cycle’ approach of UK ministers will be to play things down, (see the first 12 hours of the covid French border crisis – 172 lorries 😡) and if and when that is not possible the shift will be to blame non-ready traders
They will be right to this extent - a business choosing to sell into a foreign market must meet the rules of the market they want to sell to. UK Gov can advise, but as has been proven many times recently there is a point where gov admits that the trader is on their own.
I admit to have made a mistake myself. I have spent endless hours debating and finetuning government advice and policy approaches with UK authorities. I have gone through the Border Operating Model (BOM) with a fine tooth comb…. but https://t.co/oQLuvFhEO7
the reality is that the UK BOM - comprehensive, daunting and complex read that it is - is essentially the UK Government’s hope of how things will work.

My briefing to members yesterday relied on documents like this
https://t.co/rjEWfpiC8V
and this from French authorities https://t.co/dZ2XvXL2YK
For trade bodies like ours our focus has to shift fast to a practical dialogue with the EU authorities on the ground. We have to (1) understand what they want, (2) where possible persuade them on interpretation changes and (3) help members do what they want.
Hopefully that will be enough and we will get through the next fortnight. However if not we are going to have to essentially plead for more unilateral action by EU authorities to extend informal 'grace periods'. like this one from Irish Customs https://t.co/lKuvTrUxLu
Again I know they don't have to - I know it's the law - and I know it was the UKs choice to leave. But this type of time limited, grace period on the enforcement of the rules will lead to better compliance and better outcomes for EU business too. Grey areas present all the time
Over the next few weeks we will see the birthpangs of our new trading reality. Boris Johnson is fond of the Australia model of trade. A core part of that is a business culture focused on opening up markets it requires responsiveness, persuasion, empathy and humility
The negative political relationship we inherit from the negotiations, goes deep into the regulatory and commercial links between UK and EU. It's not going to be easy and our ministers can probably do more harm than good right now.
So in coming days, as the blame game kicks in, we will have to work hard not to rise to the bait. A row with UK Ministers won't move a single lorry.

Our overriding question from here - what does the EU require and how do we make it happen?

That's what control looks like.

More from Brexit

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
Peter Foster
Peter Foster
@pmdfoster
🚨🚨🚨🇪🇺🇬🇧🚛🚒🇪🇺🇬🇧🚨🚨🚨 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
BREXIT
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John Lichfield
John Lichfield
@john_lichfield
Fish thread.
Having read the Brexit deal, I believe B. Johnson misled the nation on Thurs when he said Britain could catch “all the fish that it wants ” in UK waters in 5 years’ time. The clear presumption in the text is that EU fleets will have similar access after 2026.1/12

The UK fish industry will have to pay a high price in EU import tariffs if that access is withdrawn. Overall… the deal falls far short of the exaggerated “sea of opportunity” promises made to UK fishermen. 2/12

The headline quota compromise - reducing EU catches in the UK 200 mile zone by 25% over five and a half years – is balanced enough. But different fishers will study the small-print with delight OR anger. Some EU quotas will be cut more than others. 3/12

Fisheries, we were told, would be a big Brexit winner. No it won’t. On this deal, the UK industry will certainly lose more from Brexit (no more frictionless access to the EU market) than it gains (incremental, extra quotas over the next 5 years). 4/12

First…the length of the deal. The 5 and 1/2 years of cuts in EU quotas/increases in UK quotas, are laid out in annexes to the main treaty. The last column says “2026 onwards” In other words, the presumption is there will be no further cuts in EU quotas after that date. 5/12
BREXIT
Shane Brennan
Shane Brennan
@ColdChainShane
End of week 2 thread on post Brexit food trade

There is continued growing unease. The main picture remains one of depressed/tentative trade (c50% down y-o-y) and some high profile logistics business have taken the rational step to stop and regroup.

The big worry here is that ‘not-trading’becomes a habit. We can’t/won’t carry on at half the volumes of before, but as volumes claw back we may only reach something like 80% of previous volumes and that is a disaster for a food industry already battered by a recession.

Lots of focus has been on the idea of EU businesses stopping serving the UK. Worries about how we feed ourselves has trumped worry about our exporters at every stage. Even though it is the collapse of our export businesses that is (and has always been) the greater threat.

To reassure the mainland British shopper that feels like less of a risk. UK is a large market of wealthy consumers, and UK gov has shown it will do anything (however unfair) to ensure stuff gets in - even letting supermarkets have access to the fast track lane to Dover.


I am not as close to this but it feels like shortage on the shelves is more of a genuine immediate threat for the island of Ireland. The types of innovative solutions we have discussed this week can help but will they come in quick enough?
BREXIT
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Tigger 🏴󠁧󠁢󠁥󠁮󠁧󠁿🇪🇺🇬🇧...
@tiggerish_
I am in the market for positive, optimistic articles about Brexit - it may not be how I’m feeling but I’m sure I’ve missed things + want to avoid confirmation bias so I’m opening my mind, + this seemed like a good place to

Elliott argues that ‘the UK has deep, structural economic problems’ - true, but correlation is not causation: we look in vain for an argument that these problems are caused by EU membership and/or that membership is preventing them being tackled

The argument would be stronger if Elliott could show that other countries in the EU faced similar structural problems, but he doesn’t + I don’t think he could - the EU manages to incorporate a wide range of economic models, + regional inequalities vary hugely between EU countries

He does not attempt to acknowledge + explain the boom in inward investment in UK manufacturing in the last few decades, one of the few economic positives for ‘left behind areas’, though that may have been hard without referring to single market membership + European supply chains

‘Brexit means that those farmers who want their fruit harvested will now have to...pay higher wages or invest in new machinery.’ Maybe they will (but I’m not convinced) but this would have unintended consequences eg higher prices for healthy food
BREXIT

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ॐ नमो भगवते वासुदेवाय धन्वन्तरये अमृतकलश हस्ताय
सर्वामय विनाशनाय त्रैलोक्यनाथाय श्री महाविष्णवे नमः
#temples

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