Brexit | Buzz Chronicles

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

$Edwin Hayward \U0001f984 \U0001f5e1$

Edwin Hayward 🦄 🗡...
@uk_domain_names

THREAD: Here are the essential points from the EU's time-limited, limited effect no-deal Brexit mitigation offer.

(Most concessions are unilateral measures it will implement. Some require UK cooperation - not clear what happens if we refuse to do

Air travel
"Unless there is a contingency measure in place on air transport at the end of the transition period, air traffic between the EU and the United Kingdom will be interrupted."

The EU is proposing 6 months of reciprocal concessions to keep (most) planes flying.

However, they're not offering any concessions on airline ownership requirements, so BA for one may come unstuck here (depending on how its restructured shareholding is going). Its message: you already had plenty of time to prepare, including a grace period.

Road transport

A) Haulage
With no agreement, hauliers would have to use ECMT permits to provide any freight transport between the UK and the EU. But there aren't nearly enough of those to go around. So they're giving a basic grace period of 6 months, as long as we reciprocate.

B) Bus services
"Furthermore, in the absence of an agreement on a future partnership between the EU and the United Kingdom by 1 January 2021, regular bus services to and from the United
Kingdom would have to be interrupted"

Here too, offer is 6 months of continued connectivity.

Antonello Guerrera
@antoguerrera

EXCLUSIVE. "We want a Brexit deal with the UK. But the EU is ready for No Deal"

I interviewed Joao @ValedeAlmeidaEU, EU’s first ambassador to the UK. He expressed many interesting comments on the ongoing #Brexit negotiations

THREAD with some

1. Ambassador Vale de Almeida:

the aim is a "fruitful, ambitious, forward-looking relationship between the EU and the UK after Brexit". BUT "it is very important to make sure that the Withdrawal Agreement is fully and completely implemented".

#Brexit

2. Then he said:

Another challenge is "to engage with the British authorities, [...] Whitehall, No10, FCDO and beyond, but also with the DEVOLVED UK nations. This country is a union. It's not only the government in London, BUT ALSO the governments in the 3 devolved nations".

3. But we'll talk later about this.

Then the Ambassador said that #Brexit "is a moment of sadness because we're losing one member of the family, but also we [the EU] need to reflect, draw lessons from it" and "to be humble as well about Europe and the project itself".

4. Which lessons?

Amb: "We [EU] need to connect better with people, understand better what are people's concerns, accept that there are national situations that need to be given full attention. We need to be humble and question ourselves: "Are we doing the right thing"

#Brexit

VIADUCT
@viaduct_eu

As we continue to recap our work for the #VIADUCT_EU project over the years, take a look below at our thirteen VIADUCT Newsletters!

These are where we kept our network and you up to date of all our activities

/THREAD

Our first newsletter kicked off the #VIADUCT_EU project with an editorial from our project leaders @FundaTekin17 of @IEP_Berlin and Wolfgang Wessels of @UniCologne

➡️

In this early newsletter, @tomas_weiss wrote a fascinating piece on relations between the EU and Turkey after PESCO

➡️

Check out Meltem Müftüler Baç's editorial here on the future of the EU-Turkey partnership in the early days of the #VIADUCT_EU project

➡️

"Arranging EU-Turkey cooperation in the era of transactional leadership" was the title of the @FIIA_fi Senior Research Fellow @ToniAlaranta's editorial in this #VIADUCT_EU Newsletter

➡️

Tony Connelly
@tconnellyRTE

Some compelling evidence at the NI Affairs Committee this morning on Brexit, the risks of smuggling, organised crime, the "soft underbelly" of the Irish border, the loss of the European Arrest Warrant and what might replace it

2/ Giving evidence were Simon Byrne, chief constable of the PSNI, Mark McEwan, assistant chief constable, Steve Rodhouse, of the UK National Crime Agency, and Steve Tracey, of HMRC. Here's the gist of what I've just filed for @rtenews online:

3/ A UK law officer has raised the prospect of intl organised criminals trafficking drugs, people + firearms into the UK via Ireland because of tighter controls at GB ports thanks to Brexit. He also suggested that Ireland may have to tighten security at its ports accordingly.

4/ Steve Rodhouse, DG of Operations with the UK National Crime Agency, said organised criminals would be making a “fundamental choice” as to whether they continue to traffic drugs, people and firearms into the UK via English ports...

5/ ...or whether they might decide to switch routes into the UK through Northern Ireland via the Irish Republic.
Mr Rodhouse told a House of Commons committee that such trafficking was already underway through what could be termed the “soft underbelly” of the Irish border.

ScottishPanda
@PandaScottish

[thread] on the tub thumping jingoism of "best in the world"

Whether it be Gavin Williamson

or Jeremy Hunt

Why they need this amidst the shitshow of brexit and the disaster of covid?

Is a fascinating question

Is British science the best in the world? My question to the boss of our gold medal winning regulator, Dr June Raine pic.twitter.com/cR9977XeUt
— Jeremy Hunt (@Jeremy_Hunt) December 9, 2020

A reminder

We could only approve this vaccine so quickly because we have left the EU. Last month we changed the regulations so a vaccine did not need EU approval which is slower. https://t.co/y2Az7okPdx
— Jacob Rees-Mogg (@Jacob_Rees_Mogg) December 2, 2020

ScottishPanda
@PandaScottish

[thread] on "sovereignty"

"Some fears have been expressed that if Britain joins the Common Market she will cease to be able to formulate her own foreign policy and will lose her separate identity. "

Thomas Sampson
@thom_sampson

A few thoughts on how Brexit is likely to affect the UK economy in 2021 - with the caveat that much remains uncertain 1/

Most important change on January 1st will be higher trade costs due to creation of UK-EU customs border plus restrictions on what services trade is allowed

Costs from regulatory divergence likely to be at least as important as border costs in the long run, but not immediately 2/

Expect disruption & delays at the border for the first few months

However, I do not anticipate shortages of essential goods, as imports can be expedited if needed, e.g. air freight, priority customs processing 3/

Delays will become shorter and more predictable as firms learn what paperwork is needed and customs capacity improves. Important for just-in-time supply chains where predictability is more important than speed 4/

Contrary to government claims, many costs will be permanent:
- Red tape, e.g. need for customs workers wastes resources & lowers productivity
wasting resources
- Tariffs (if no deal)
- Rules of origin (if deal)
- Lost market access for services

https://t.co/07wNehNn7z 5/

Fwiw I get told that economics and process considerations (haulage, logistics, manufacturing etc) play limited role in #brexit inner circle decision-making. Belief it\u2019ll be messy but business will adjust. Q is more short term political embarrassment. 2/2
— Peter Foster (@pmdfoster) December 13, 2020

David Henig
@DavidHenigUK

The first working day of the new UK-EU relationship. We're going to hear a lot this year from all sides (remain and Brexit in UK, EU, etc) using any possible scrap of evidence. But what we need to look for is trends, over time, so a few to think about in this thread... 1/

Obvious disruption or reduction to UK-EU trade flow. Here we may be thinking e.g. of a permanent 10% fall in traffic, or regular queues, or indeed no change. And apart from goods, the same with individual travel, for work, residence etc... 2/

As a reminder we're not expecting permanent scenes like those of the week before Christmas when borders were closed. But 5-10% reductions in UK-EU traffic would not seem to be out of line with economic forecasts of a hit to the UK economy. 3/

Then we'll need to look at whether UK-EU trade is being substituted by UK-non EU trade. This probably should happen to a degree, and in theory efficiencies could come this way. But its also possible that all UK trade falls, with the UK no longer an EU entry point. 4/

Inward investment is another key post-Brexit indicator. There isn't a single obvious data set here, but the impression of the last four years has been a fall off in manufacturing, but not in services, particularly tech. Continuation would suggest economy tilting to services. 5/

$European Unity #FBPE \U0001f1ea\U0001f1fa\U0001f4b6\u2b50\ufe0f$

European Unity #FBPE 🇪...
@EuropeanUnity1

#Brexitadventcalendar

31 liars & hypocrites who facilitated brexit

Some are mad, some are bad

All are millionaires, some are billionaires

They’ll profit from UK companies failing, keep their money abroad to avoid UK tax and travel freely with their EU passports

#RejoinEU

https://t.co/mZRr9u1RPb

A brexit advent calendar to count down to loss of our EU rights

Box 31: Boris Johnson told us:

\u201cI\u2019m in favour of the single market\u201d

\u201cThe cost of getting out will be virtually nil\u201d

\u201cWe have an oven ready deal\u201d

\u201cThere is no threat to the Erasmus scheme\u201d

\u201cF**k business\u201d pic.twitter.com/w8KxDJYV4x
— European Unity #FBPE \U0001f1ea\U0001f1fa\U0001f4b6\u2b50\ufe0f (@EuropeanUnity1) December 31, 2020

https://t.co/BY6hKloR9d

A brexit advent calendar to count down to loss of our EU rights

Box 30: Nigel Farage told us:

\u201cIn a 52-48 referendum this would be unfinished business by a long way\u201d

\u201cI never promised brexit would be a huge success\u201d

\u201cIf brexit is a disaster, I will go and live abroad\u201d pic.twitter.com/UfO9gzoUPD
— European Unity #FBPE \U0001f1ea\U0001f1fa\U0001f4b6\u2b50\ufe0f (@EuropeanUnity1) December 30, 2020

https://t.co/NdC0ltLeSM

A brexit advent calendar to count down to loss of our EU rights

Box 29: Andrea Leadsom told us:

\u201cI don\u2019t think the UK should leave the EU. It would be a disaster for our economy & lead to a decade of uncertainty\u201d

\u201cMy expectation is that there will not be an economic impact\u201d pic.twitter.com/SMSQ6ruG2h
— European Unity #FBPE \U0001f1ea\U0001f1fa\U0001f4b6\u2b50\ufe0f (@EuropeanUnity1) December 29, 2020

https://t.co/BLnRLotso7

A brexit advent calendar to count down to loss of our EU rights

Box 28: Andrew Bridgen told us:

\u201cAs an English person I have the right to go to Ireland, I believe I can ask for a passport can\u2019t I?\u201d

\u201cWe won\u2019t be crashing out, we\u2019ll be cashing in\u201d pic.twitter.com/jFINFu8xNe
— European Unity #FBPE \U0001f1ea\U0001f1fa\U0001f4b6\u2b50\ufe0f (@EuropeanUnity1) December 28, 2020

$Edwin Hayward \U0001f984 \U0001f5e1$

Edwin Hayward 🦄 🗡...
@uk_domain_names

Here we go. The final Brexit debate begins. The final splash of petrol on the dumpster fire before the match is lit at 11pm tomorrow night.

Boris Johnson deliberately mocks the SNP by calling them the Scottish Nationalist Party, despite being admonished by the Speaker. There speaks a man who doesn't give an itty bitty toss.

Boris Johnson: "Just as we've avoided trade barriers"

What? Ah, it's because he carefully defined them as "tariffs and quotas" just before lying about them.

There will be massive, massive non-tariff barries.

He's dodging the question about fishing and Northern Ireland, wriggling like one of those eels the EU won't be buying any more.

Boris Johnson is bigging up the speed with which the UK managed to reach a trade deal.

But a trade deal that favours the interests of your counterpart while securing almost none of your own *should* be a quick process. Biting your hand off takes no time at all!

$Edwin Hayward \U0001f984 \U0001f5e1$

Edwin Hayward 🦄 🗡...
@uk_domain_names

A few thoughts in advance of seeing the Brexit deal, assuming it's not scuppered at the last.

1. It will save industries, in the short term. For all the problems it *won't* solve, there is at least that. Tariffs would have finished off some sectors like switching off a light.

2. Expect a lot of confusion (through ignorance, and deliberate obfuscation by certain segments of the media) between free trade and frictionless trade. Trade that is free can still come with plenty of friction. Those extra £billions in customs paperwork won't go away.

3. There may be a standstill or implementation period. If there is, that will be helpful because it will let us get further down the road of vaccinating against the coronavirus, and resolving one crisis before plunging into the rest.

4. Any standstill will trigger a huge wave of "you told us scary things would happen, but they didn't." If you're counting along, it will be the 3rd such wave. First was during the negotiations while we were still EU members. Second during transition when EU rules still applied.

5. Those are just words. But the damage to the economy is real. So a standstill remains preferable, though teeth may have to remain gritted a while longer as a result.

6. Expect a few positive surprises. (Not compared to EU membership, but to what would otherwise have been.)

Peter Foster
@pmdfoster

BREAK: 🚨🚨🇫🇷🇬🇧🚗🚙🚗🚙🚗🚙🚗🚙🚗🚙🚗🇫🇷🇬🇧🚢🚢🚢🚨🚨 The UK rejects Dover funding bid to double French passport booths via @FT - long queues ahead...as other ports also don’t get money they asked for to build #brexit border. Stay with me/1 thread

So what is this all about? Well back in October the govt announced a £200m Port Infrastructure Fund - details below - for ports to get ready for the new trade processes for #Brexit border. Dealing with those 215m extra customs decs etc..

Today we find out what everyone got - but it turns out that 54 ports asked for more than £450m - so a LOT have been bitterly disappointed. Not just Dover (on which more in a second)...they are furious the government is not willing to fully fund the very borders they mandated /3

So here is the list of what everyone got - 41 ports had winning bids totaling just over £194m - but you'll note that Dover got...wait for it...£33k. No, that is not a type. Thirty-three thousand pounds. They asked for £33m!! Why? Well to build new passport lanes. /4

Why? Because as an @NAOorguk report warned in November the Govt's 'reasonable worst case scenario' for delays at Dover for passenger traffic was "one to two hours" and "much longer" in the summer. Eeek. Happy hols everyone! /5

https://t.co/K77Is5tfxk

Holger Hestermeyer
@hhesterm

It is time to talk Brexit and standards again. (thread)

London intends to make use of its costly SPS regulatory autonomy. As widely anticipated, first area of divergence expected to take place in the field of Crispr technology for genome editing, area where the UK has long argued for a more liberal stance.https://t.co/btRoxU3saZ
— Emily Rees (@emilyrees_eu) January 7, 2021

Let's start off with: I don't think any trade experts are surprised by this. It is why the TCA did not do much on SPS. It is why the EU did not offer much on SPS. It is why the UK did not ask much on SPS.

But it also shows that the popular slogan "after Brexit we'll have the same standards as before, so why would anything change in trade" was wrong - and worse, it was purposefully trying to stifle a necessary debate.

And this leads me to the next point: I have no issue with changing the rules, I have a massive issue with how it is done. Here's what we should discuss:

The decisive question: What are the standards the UK as a country wants. To inform this debate, we need the following information: