BC EU

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.
For services as for goods, except the effects will be deplayed by covid. But the argument over musicians visas is a good preview. Trade between the EU and UK will get harder, there will be less of it. That's the effect of putting up trade barriers so significantly.
What we're experiencing is those numbers on the Brexit forecast models coming to life. There was already a slowdown in UK-EU goods trade (flat since 2017). It has already been affecting UK jobs and growth. That's going to continue.
And as we're also seeing you can't just substitute other markets for the EU. The logistics aren't set up. Or you have the same challenges of paperwork. And trading globally means global competition, rather than being part of the world's largest single market.
So the UK's raising trade barriers experiment is now well under way. It will be glossed over by a government improbably claiming to support free trade. The same supposed experts as before will claim this is all the EU's fault. But the impacts will be felt.
The new uncertainty - much trade from the UK. Also uncertain, the actual economic impact, we'll need to see a lot of data. And any political response, at the moment the government is still comfortably controlling the narrative. But early post-Brexit days... /end
PS as a reply suggests, an example of the denial of the current situation. The government can't just "resolve EU touring visas". It would have to negotiate with the EU and take into account other issues like haulage and support crews. https://t.co/EkZgFb5b0L

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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.


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.
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.
This potential benefit list from CPTPP is not the longest and is still misleading. Those Malaysian whisky tariffs - emilimated over 15 years (if they don't seek any specific exemption for UK). Those rules of origin benefits? Only apply to import / export to CPTPP countries. https://t.co/9TbheOVhsR


Here's my more realistic take on CPTPP. Economic gains limited, but politically in terms of trade this makes some sort of sense, these are likely allies. DIT doesn't say this, presumably the idea of Australia or Canada as our equal upsets them.


As previously noted agriculture interests in Australia and New Zealand expect us to reach generous agreements in WTO talks and bilaterals before acceding to CPTPP. So this isn't a definite. Oh and Australia wants to know if we'll allow hormone treated beef

Ultimately trade deals are political, and the UK really wants CPTPP as part of the pivot to indo-pacific, and some adherents also hope it forces us to change food laws without having to do it in a US deal (isn't certain if this is the case or not).

If we can accede to CPTPP without having to make changes to domestic laws it is fine. Just shouldn't be our priority, as it does little for services, is geographically remote, and hardly cutting edge on issues like climate change or animal welfare.

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1/“What would need to be true for you to….X”

Why is this the most powerful question you can ask when attempting to reach an agreement with another human being or organization?

A thread, co-written by @deanmbrody:


2/ First, “X” could be lots of things. Examples: What would need to be true for you to

- “Feel it's in our best interest for me to be CMO"
- “Feel that we’re in a good place as a company”
- “Feel that we’re on the same page”
- “Feel that we both got what we wanted from this deal

3/ Normally, we aren’t that direct. Example from startup/VC land:

Founders leave VC meetings thinking that every VC will invest, but they rarely do.

Worse over, the founders don’t know what they need to do in order to be fundable.

4/ So why should you ask the magic Q?

To get clarity.

You want to know where you stand, and what it takes to get what you want in a way that also gets them what they want.

It also holds them (mentally) accountable once the thing they need becomes true.

5/ Staying in the context of soliciting investors, the question is “what would need to be true for you to want to invest (or partner with us on this journey, etc)?”

Multiple responses to this question are likely to deliver a positive result.