🚨🚨🚨🇪🇺🇬🇧🚛🚒🇪🇺🇬🇧🚨🚨🚨 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/

It's OUT! The first #Brexit Briefing of 2021...which explores how unrealistic some industry expectations are about 'fixes' to the current deal, now the penny is dropping about what it means for supply chains and UK position vis-a-vis EU

So take the example this week, where the @Foodanddrinkfed raised the issue that UK-hubs for food and drink were "unworkable" since goods that came in from the EU were attracting full tariffs when the were spun back into Ireland or other EU members /2



They were backed by other EU associations - and both said they would lobby UK govt and @EU_Commission to 'fix' what they presumed was an "unintended consequence" of the deal....except that both EU officials and UK govt have basically shrugged. The deal is the deal. /3

@EU_Commission This is in no way confined to food industry - clothes and retailers are also hard-hit.

But lots of industry has wrongly bet that 'common sense' and 'self interest' would prevail once the nasty negotiations phase was out the way...but that's not the signal being sent. /4

As one EU official puts it: “You can’t expect the UK to remain the food import hub for the EU. It’s not sustainable, and makes no sense in the mid-to-longer run." And that applies to financial services, clothing, retail goods....a bureaucratic curtain has descended. /4

Good to see @Marthakearney on @BBCr4today taking @pritipatel to task over the numbers of lorries in Dover - now 1,500 in Stack (M20) and Manston airfield combined - rather more than 170 that @BorisJohnson said yesterday, baffling haulage groups /1

@BBCr4today @pritipatel @BorisJohnson She won't say whether lorry drivers will have to take a PCR test (long-winded, requires RNA extraction etc. 24-48hrs) rather than much faster (and less sensitive) lateral flow test. Short Strait will struggle to operates with PCR tests. You'd need one yesterday for tomorrow! /2

@BBCr4today @pritipatel @BorisJohnson Because of the delays that have empty lorries already stuck in the queues, in an earlier interview British Retail Consortium @the_brc Andrew Opie said fresh food shortages would occur within days because lorries couldn't get back to Spain etc to reload /3

@BBCr4today @pritipatel @BorisJohnson @the_brc Haulage experts like @RHADuncanB are always at pains to explain that the lorries at Dover (and GB-IE, for that matter) are flowing in a continuous cycle. More than 85% are from EU countries. So if you block one side, or artery the whole system starts to grind to a halt/4

@BBCr4today @pritipatel @BorisJohnson @the_brc @RHADuncanB This episode has been a bit of a teaching moment, exposing the canard that the UK can unilaterally "take back control of its borders". It can't. Borders are membranes. Traffic flows in both directions. Actions by one side impact the other - as French move has demonstrated. /5

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As #brexit talks drift towards the rocks, trade groups say plans for Irish Sea trade border after Brexit are ‘in a mess’ via, my latest via @FT ...this is an issue coming deal or no deal. Stay with me 1/


So to recap, under Northern Ireland protocol negotiated in the Withdrawal Agreement all goods going from Great Britain to NI must confirm with EU customs code. To avoid new border in Ireland, that means trade border in Irish Sea - new paperwork, new systems. Operational Jan 1/2

The problem is that because the FTA negotiations are stuck, the negotiations in the Joint Committee on how to implement the Protoocl (and @michaelgove is with @MarosSefcovic talking today) haven't yet born fruit. That means a LOT of uncertainty. /3

@michaelgove @MarosSefcovic How much uncertainty? Well, as @MichaelAodhan tells me, a lot. Research by the Northern Ireland Business Brexit Working Group (NIBBWG) found only 20% of members were ready. And its not their fault: need info on tarifs, computer systems etc. And are not getting answers /3

@michaelgove @MarosSefcovic @MichaelAodhan Now. The Government has earmarked £200m for the Trade Support Service run by Fujitsu and the Customs Clearance Consortium with @ShankerASingham @RobHardyFR8 to help business process new paperwork...BUT even it cannot answer lots of Qs, and won't help with animal/SPS issues. /4

NEW: 🚨🇪🇺🇬🇧🚛🚚🍤🐟🚢🇬🇧🇪🇺🚨 Building of Brexit border posts faces delays via...industry calling for delay to July 1 U.K. #brexit border roll out - my latest via ⁦@FinancialTimes⁩

This goes back to last year, when UK gov got £430m of bids for new Border Control Posts and only funded £194m worth - and those bids that won took a 33pc 'haircut'. Result, everyone unhappy - those that got nothing, and those that won, got not enough

The result is that ports looking to build BCPs to accommodate new border coming in from July 1 say they haven't got enough money. They want either delays to border on July 1, or flexible implementation. /3

So as @timgmorris of @UKMajorPorts group tells me: “We need urgent action from the government to show flexibility either on the July 1 deadline or what is required on that date....or accept potentially serious implications for traffic flows this summer." /4

@timgmorris @UKMajorPorts As @richard_bpa of @britishports says “There is now a real danger that customs infrastructure won’t be ready by July in some ports and we’re urging ministers to take a pragmatic approach to ensure that goods can continue moving at those locations,” /5

Many Brits live under the false impression that the UK has a Special Relationship with the US. In reality, it's far more transactional, especially for the Americans. This delusion is especially dangerous as post-Brexit UK seeks a new place in the world

While the two do have a very close relationship on security and defence built on post-war efforts, it would be foolhardy to expect any US president to place much emphasis on the UK's economic interests over any other third country

The problem Boris Johnson has is that a close relationship with the White House is more important than any time since the war, given the UK's new status outside the EU. What a headache, then, that the US is having an election with 2 v different candidates

On one hand: Trump likes Brexit, dislikes the EU and might see benefit in disrupting the EU by teaming up with the UK in a way that helps the UK economically. However, Trump is wildly unpopular in the UK and Boris does not want to be seen as his best mate

On the other: Brits are generally more pro-Democrat & more pro-America when a Dem is in the White House. However, Biden clearly does not support the UK's Brexit position, especially when it comes to Northern Ireland.

Many bearish sentiments across the mortgage sector because they believe companies won't succeed as much when rate finally go back up (3 maybe 4 years from now). Which makes sense except for $GHIV and here's why. In 2016 Brexit came & rates went down which lead to huge success...

in mortgages. Business was great for many companies but then in ‘17 and ‘18, rates went up. What happened you might ask? A lot of people got compressed, margins got compressed, rates went down, & people struggled in the mortgage market...

Well UWM ( $GHIV ) compound annual growth rate, from ‘16 to ’18, was 28%. Companies that focused on refi struggled, so obviously a very successful company like Rocket or Quicken, they went down 14% in compound annual growth rate in those years...

$GHIV actually grew, and so did their profits, so the opportunity to continue to grow in all cycles is a big differentiator for UWM, and the broker channel versus a lot of our competitors. When rates rise, it's actually even better for $GHIV (UWM)..

If rates stay low, great UWM will continue to crush but when the rates rise, they will continue to steal even more market share because of how they operate in the mortgage sector. People also talk about the speed in closing a loan & that other competitors are faster...

This is the second time in one week that I have to engage with something written by a British academic on their assessment of Brexit & Ireland. In this case @HelenHet20 in @NewStatesman 🧵

1. @HelenHet20 Europe’s vaccine crisis has revealed the true nature of the EU?? Ireland has been a member state since 1973, has had more refs on EU topics than any other country & thus its political & administrative elite knows & understands EU @BrigidLaffan

2. Said elite & electorate never idealised EU-small states are acutely aware of limits of their power & deploy capacity with care-the Swedes coined the term smart states. Small states understand they have to be smart. @BrigidLaffan

3. Since 24th of June 2016 Ireland has been shown unstinting solidarity from 26 EU states & EU institutions. During this time, its nearest neighbour tried to power it off the diplomatic pitch & kept thinking that It could peel Ireland off from EU solidarity. @BrigidLaffan

4. On the vaccine debacle & it was one the lesson the Irish will take is that having a seat at the table & voice matters-it took an Irish Taoiseach & Foreign Minister a couple of hours to sort this out. @BrigidLaffan

When we had a [Brexit] deal, I thought, we're saved all the rigmarole and hassle, it'll work sweet as a nut, but it hasn't happened," says Mr Flannigan. Instead, he says, it feels like the clock's been turned back 30 years
People really don't have a "sweet as a nut" clue do they?

Yes "30 years" and worse ..because you are now outside the Single Market & "worse" outside the Customs Union too . You're now trading under conditions more like Belarussia into EU without the customs & logistical capacity to handle the volumes. Your business will most likely fail

This was always so ..regardless of the "deal" esp with "87% of Berwick Shellfish's £1.7m sales go to France, Spain and Germany"
Next....
"The real test for me is the next two to three weeks, as inventory is depleted and orders increase," says Mr Munro.

"He thinks there's a window of opportunity now, for the authorities to fine tune the system before volumes are ramped up" .. "fine tune" Oh FFS...!! wake up.

The BBC report a litany of businesses not understanding the "deal" was always going to mean being outside the SM/CU

"Mr Dormer fears the "massive amount of aggravation" could mean business partners on the continent start to look elsewhere.".....errrr ...yes.

Note how though the report leads with a suggestion of EU "pettiness"

Prof Valsamis Mitsilegas tells NI committee that the agreement on JHA is dynamic, as EU values UK inputs, and EU law will evolve over time, and value of system to UK will mean adaptation

Prof Steve Peers of Esssex Uni. Tells NI cttee that deal keeps 3/4 of previous arrangement, missing quarter is SIS II and some other capabilities in data exchange. Says quite a lot has been preserved by two sides, esp compared to no deal situation

Simon Hoare MP - is the deal adequate to challenge of policing NI, and IRL: Dr Gemma Davies (Northumbria law school). Says Data Protection issues v complex, PSNI/AGS co-operation might be better facilitated by specific agreement (not going beyond EU agreement, but clarifying)

Colin Murray tells NI cttee that Norway/Iceland extradition arrangements with EU put in place 10 years ago, now working in ways comparable to EU arrest warrant. Operational issues get easier to fix over time.

Colin Murray says there are break clauses in the TCA, and the police element could break down in a relatively short period (in theory).