Brexit – no going back?

As Kim Jong Un and Donald Trump exchange words of ‘fire and fire fury’ whilst the world subsequently prepares for WWIII, Brexit continues to dominate UK politics.
It’s no secret that the Conservatives are heavily divided over Brexit and the direction in which negotiations should take, which is why the latest Brexit update may not bring remainers or leavers any comfort.

 

Former diplomat, Simon Fraser, has warned the UK’s negotiations with the EU about leaving the bloc have not begun well due to disagreement amongst ministers over the type of deal they should be seeking. (Tell us something we didn’t already know!)

Fraser, who served as the Foreign Office’s most senior civil servant up until 2015, has called on the Conservative government to put set out a clearer position as the team responsible for handling Brexit negotiations haven’t “put much on the table” so far.
You only have to remember the picture of Brexit Secretary David Davis’ lack of paperwork during the start of negotiations to know not much thought is being given to the exit process. Fraser’s comments come amid reports that Downing is preparing to publish a series of ‘position papers’ in the coming week which will detail its proposals for the Northern Irish border and future customs agreements with the EU.

Ahead of that report being published, Chancellor of the Exchequer, Phillip Hammond and International Trade Secretary, Liam Fox have released a joint statement confirming there will be a fixed transitional period after Britain leaves the EU. In their article published for The Telegraph, they did not clearly state the length of time for which this transitional period will last but did declare Britain will not stay in the union by the “backdoor” and will completely leave the single market and the customs union once Brexit is finalised and completed in 2019.

“We are both clear that during this [transitional] period the UK will be outside the single market and outside the customs union and will be a ‘third-country’ not party to EU treaties”

They said the UK’s borders “must continue to operate smoothly”, that goods bought on the internet “must still cross borders”, and “businesses must still be able to supply their customers across the EU” in the weeks and months after Brexit.

Sourced from: http://www.bbc.co.uk/news/uk-politics-40914604

The joint article by the two ministers is being seen as a sign of unity on the Brexit issue – you will recall several posts on the in-fighting between Fox and Hammond regarding Brexit. Of course, for Prime Minister Theresa May who called for unity at the start of the summer recess this is important not only for her leadership but for the ease of Brexit negotiations in Brussels. However, criticism from the Liberal Democrats notes that this only demonstrates Mr Hammond being brought “back in line” with the government’s “hard Brexit program”. Tom Brake, the foreign affair’s spokesman for the Lib Dems also added:

“What we don’t know from this letter is exactly how this is going to work. It’s also not clear how long the transition period is going to be.”

Despite the attempt at showing public unity, there is no hiding from the deep divisions that still lie within the party, with many ministers disagreeing over key issues such as immigration and trade. This is addressed by SNP MP Stephen Gethins who stated there is “no masking the fact there are deep divisions within cabinet over Brexit – and still no apparent plan almost 14 months on from the vote”.

Criticism also came from Labour MP, Ben Bradshaw, who said leaving the single market and the customs union would be a “dreadful mistake for the future of our economy, for jobs and prosperity in Britain”.

What exactly are the implications of leaving the single market and the customs union?

  • Leaving the European Economic Area (EEA): –
    those in favour of remaining in the single market argue the UK government should try to negotiate staying inside the EEA, retaining friction-free trade not only in goods but also in services, upon which the bulk of our economy is based. However, the political price to be paid for such access is correspondingly high, and counters the objectives of pro-Brexiteers. In the EEA, Britain would be obliged to keep the four freedoms, including the free movement of people, (so no regaining control of our borders), align its regulatory regime with the EU’s (so no regaining sovereignty) & follow European Court of Justice (ECJ) rulings and still pay into the EU budget.
  • Transitional customs union agreement: – 
    Other countries such as Turkey have a separate customs union agreement with the EU. If we were to have a similar agreement, the EU’s 27 members would set the common tariffs and Britain would have no say in how they were set. We would be unable to enter into any separate bilateral free trade agreement. We would be obliged to align our regulatory regime with the EU in all areas covered by the union, without any say in the rules we had to adopt. And we would be bound by the case law of the ECJ, even though we would have no power to bring a case to the court.
  • Trade: –
    If the EU were to negotiate an agreement with the US that was in the union’s best interests but against our own, our markets would be obliged to accept American produce with no guarantee of reciprocal access for our own goods into the US.

 

With so much to consider, there’s no wonder why Brussels are keen to get on with the negotiation process in such a short space of time.

According to to David Davis, the publication of the papers outlining the government’s aims for Brexit will mark “an important next step” towards delivering the referendum vote to leave the EU.

We just have to wait and see.

Other things you may have missed…

International Development Secretary Priti Patel announced the UK will contribute £100m to the global fight against polio in an effort to eradicate the disease by 2020. The money will fund the immunisation of 45m children annually for the next three years.

The last case of polio in Nigeria was in July 2016, so it could potentially be declared polio-free in 2019, but there will need to be three years without a single case to prove it has been eradicated. In her announcement, Patel highlighted: “The world is closer than it ever has been to eradicating polio for good, but as long as just one case exists in the world, children everywhere are still at risk. Now it is time for others to step up, follow Britain’s lead and make polio history.”

 

Plans to overhaul data protection laws could see Britons granted powers enabling them to ask for their personal data or information (i.e. Social media posts) to be deleted from in the internet. The proposals included in the new Data Protection Bill could see companies receive fines of £17m or 4% of their global turnover – whichever is higher – if they refuse to comply with users’ requests to delete their personal information. The proposed legislation was outlined by Digital Ministers, Matt Hancock, yesterday but will not be published in full until early September.

The Data Protection Bill is designed to bring the UK in line with the EU’s forthcoming General Data Protection Regulations (GDPR), to ensure data will continue to flow freely between the UK and the European Union after Brexit. Under the union’s data rules, personal information can only be transferred to non-member states where an adequate level of protection is guaranteed.

Just goes to show Brexit it more than just about immigration and trade. With so much legislation that needs to be transferred from EU to UK law, can Brexit really be achieved by 2019 or is there scope for a reversal? Pleasing all sides, both remainers and leavers is not going to be an easy task; although the outlook of the UK once Brexit is achieved is still uncertain, one thing that is certain is many people will be left unsatisfied and displeased with life after Brexit.

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