Categories Brexit

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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.
Been waiting for 👇 🚨

Important story on what a “tariff-free” deal means in practice and why it’s not enough for two economies as closely integrated.

Tariffs are removed on goods that meet rules of origin. This is a complex and nuanced area of customs.

/1


Important to remember that trade deals (FTAs) weren't designed with such a high degree of economic integration in mind.

So some of the standard RoO provisions will seem incredibly restrictive under the UK-EU deal.

/2

Minimal operations or insufficient processing is a standard part of an FTA. Most, if not all FTAs, include a provision on minimal processing – processing not considered sufficient to confer originating status even if rules of origin have been met.

/3

It is standard procedure not to apply cumulation when goods have only been subject to minimal processing.

To be able to cumulate origin and consider the final product of UK origin, the processing carried out in the UK needs to exceed minimal operations.

/4

The level of integration between the UK and the EU means that this will have significant consequences for a number of industries.

For example, in supply chains where goods are brought into the UK from the EU and reassembled, sorted or repackaged and re-exported to ROI.

/5
OK, it can be avoided no more.

This is perhaps the most complex 🧵 on #Brexit I've ever attempted. But this issue really matters.

Business, possibly even lives, depend on getting this stuff right.

It is about the complexity of Brexit delay, and what to do about it.

1/25

If negotiations had gone to plan, it would have worked thus:

1️⃣ 🇬🇧&🇪🇺 agree a Deal, politically
2️⃣ That is then turned into a legally ratifiable text
3️⃣ Both sides then ratify - on 🇪🇺 side Member States and the EP, 🇬🇧 side the Houses of Parliament
4️⃣ Deal in force 1.1.2021

2/25

The problem: we do not have 1️⃣ yet.

And with just over 16 days to go - including 🌲 - we do not have time for 2️⃣ and 3️⃣ and hence no 4️⃣.

We *might* have time for 2️⃣ - and that could prove to be significant (see tweet 7 below), but definitely not 3️⃣ on 🇪🇺 side.

3/25

*Essential* problem: by having spent so long talking (I think 🇬🇧 tactic has been to run down the clock -
https://t.co/8EJZAJZHqz ) the path to a normal ratification is now ⛔️.

Now ratification becomes harder - legally, politically, practically - with every passing hour.

4/25

The most obvious stumbling block is...

🥁🥁🥁

... the European Parliament!

Parliamentary sovereignty, eh? A topic for another time.

Anyway, the EP has said it will not vote on a Brexit Deal this
1. #Belfast #IrishSeaBorder There is no doubt that Brexit & the accompanying Irish Sea Border has destabilised the Union. Whilst the constitutional status of Northern Ireland has not changed, the fact of N.I remaining in the single market of the EU confirms it is”a place apart”.

2. Belfast Steve Aitkin/UUP, Mervyn Gibson/OrangeOrder,Jim Allister/TUV, Jamie Bryson/Unionist Blogger, etc etc, all see the Irish Sea Border & different economic arrangements for NI apart from Britain as a “betrayal”. It comes in a long line of Tory”betrayals”.

3. #Belfast They are correct. The Irish Sea Border & EU single market moves N.Ireland closer to the Republic of Ireland in terms of economic
https://t.co/tdKZhjKhWu,it doesn’t change the constitutional status of NI but it is a huge psychological blow to a Unionism.

4. #Belfast The DUP utterly failed to “strengthen the Union”. Their attempt to hold the minority Tory Theresa May govt to ransom backfired spectacularly when Boris Johnson won a significant majority. Their arrogance led them to be isolated & resented in Westminster.

5. #Belfast How does Unionism now react to this?Retreat to the”Bunker”?Repeat the ineffective “Flag”street activism of the past? The Union can now only be saved imo by reaching out to the 5-10% swing vote that will decide a future Border Poll on Irish unification,& it is coming.
A quote from this excellent piece, neatly summarising a core impact of Brexit.

The Commission’s view, according to several sources, is that Brexit means existing distribution networks and supply chains are now defunct and will have to be replaced by other systems.


Of course, this was never written on the side of a bus. And never acknowledged by government. Everything was meant to be broadly fine apart from the inevitable teething problems.

It was, however, visible from space to balanced observers. You did not have to be a trade specialist to understand that replacing the Single Market with a third country trade arrangement meant the end of many if not all of the complex arrangements optimised for the former.

In the absence of substantive mitigations, the Brexit winners are those who subscribe to some woolly notion of ‘sovereignty’ and those who did not like freedom of movement. The losers are everyone else.

But, of course, that’s not good enough. For understandable reasons Brexit was sold as a benefit not a cost. The trading benefits of freedom would far outweigh the costs. Divergence would benefit all.