Last week, if anyone can remember that far back, the fifth anniversary of the UK leaving the EU provoked a welter of comment and detailed analysis from which it is hard to escape the conclusion that what I’ve sometimes called ‘the battle for the post-Brexit narrative’ is over. The public view that it was wrong to leave and that leaving has not been a success is entrenched and growing. The bulk of sensible and serious commentary, both in the UK (£) and abroad, endorses that.
Meanwhile, Brexit’s remaining defenders, such as Boris Johnson (£) and Nigel Farage, can only wail about the need to “believe” in Brexit, and the benefits they claim for it range from trivialities to demonstrable lies, the most frequent and most egregious being that it enabled an early Covid vaccine rollout. The very weakness of that defence, combined with the notable absence of celebration of the anniversary, show the abject failure of Brexit to deliver the promises made for it by its advocates.
The core problem in current British politics is that the Brexiters are too shameless to admit this failure, and utterly resistant to even the most modest attempts to address the consequences. Since, public opinion notwithstanding, this stance is baked in to both the Reform and Tory parties, and large and noisy section of the media, Brexit Britain is, as I wrote in my previous post, stuck. Like squatters, having trashed the house, they will neither get out nor allow the owners to repair it.
Thus a reversal of Brexit is politically unrealistic in any immediate timescale, and the government’s promised ‘reset’ is the only game in town. Yet even that has been pursued with frustrating timidity and slowness, not least because of the opposition of the Brexit wreckers.
However, in what has been a tumultuous two weeks, there are at least signs of the reset being pursued with more urgency and a little more resolve. Perhaps more importantly, the tumult, which derives from Donald Trump’s return to power, depressing and disorientating as it is, could present an opportunity to finally break out of the stale circles of the Brexit debate.
Reset: a new urgency?
It’s hard to deny that, even though these events were already planned, Trump’s explosive arrival in the White House put new meaning upon Starmer’s attendance at a meeting of EU leaders, to discuss defence and security issues, and the meeting next day of the EU-UK Forum, where EU Relations Minister Nick Thomas-Symonds delivered a major speech. At all events, although it was scarcely the first time that Starmer has talked about wanting an “ambitious” security partnership and reset with the EU, it was the first time that he and Thomas-Symonds set out a desire to agree a reset deal within the next three months.
It’s not clear how realistic this is, since the related announcement of a UK-EU summit to be held in May would imply that negotiations be completed in advance of this. Nevertheless, both the summit itself, which will be hosted by the UK, and the identification of a timetable, can be read as recognizing the need to deliver, and deliver quickly, on a reset which, so far, has mainly consisted of warm words.
Thomas-Symonds also spoke of the need to approach the reset with “ruthless pragmatism” in place of “ideologically-driven division”. Quite what this means is also unclear. Hopefully, it is a signal to British Brexiters (£) that the government is willing to take on their backlash against the reset, which I discussed in a recent post and which has been much on display in utterly ludicrous attacks on this week’s meetings in the pro-Brexit press*. If that is so, then it would be helpful for Thomas-Symonds, or Starmer himself, to give a big, uncompromising, and full-throated speech demolishing those attacks and advocating, with enthusiasm, a detailed agenda for the government’s still far too vague ‘ambition’. If not now, when?
Less optimistically, it might have been (or have also been) a signal to the EU that the government still clings to the familiar Brexiter line that Brussels should be more ‘flexible’ and less ‘ideological’ in its application of rules for third countries. That line is still, at least implicitly, what Farage believes would “improve” the existing deal, as if post-Brexit ‘red tape’ were an EU imposition rather than an inevitable consequence of decisions taken by UK and urged by Farage himself. I’m only guessing, but it seems to me at least possible that there are still people in the civil service and the cabinet who have the same view, if only because, even after all these years, there is still so much ignorance about how the EU works and what Brexit means.
But even the most optimistic reading of these developments (i.e. that Starmer intends to stand up to the Brexiters and to work realistically and rapidly to agree the most maximalist version of the reset), for all that it would mark a shift in gear compared with the last eight months, already seems inadequate to the scale and pace of events. For, based even on the short period since Trump returned to office, there is a good case for thinking that the fundamental recalibration of global politics, which I foreshadowed in a post in November, is now unfolding in plain view.
Trump’s global coup
That recalibration isn’t only, or even primarily, about Trump’s trade tariffs, which I’ll come back to. There is already a long list of other developments, including the pardoning of the J6 rioters; the forced deportations (with the associated bullying of Colombia and the planned re-opening and re-purposing of Guantanamo Bay); the quite extraordinary handing of access to government finance systems to Musk; the hounding of Federal agencies including the FBI; the attempts to suborn the CIA; the freezing of foreign aid; the purge of all forms of diversity initiatives; the bullying territorial claims made on Panama, Greenland and Canada; the grotesque and yet absurd proposal to “take over” Palestine and create a “Riviera of the Middle East”; the withdrawal from the Paris Accord and the World Health Organization.
That is only a partial list of what has happened so far, and there will undoubtedly be more to come, probably even as I am writing. But it is enough to eviscerate any lingering idea that Trump will show even the restraints of his first presidency. It may be chaotic, but is also a coup of sorts, and arguably an assault on the constitution. Under Trump, the US has launched a global attack on liberalism in its most general meaning, and on many of its specific attributes at home and abroad.
Even acknowledging that many of Trump’s announcements and executive orders are merely performative, that much of what he does will be heavily resisted, that his administration is likely to be characterized by incompetence and infighting, will not last forever, and may become domestically unpopular, it seems certain that the US will be permanently changed and, as a result, so will the rest of the world. Apart from anything else, it shouldn’t be forgotten that Trump is, in fact, doing what he promised he would do, and was given a clear endorsement for it by US voters. So, even if some of those who did so turn against him, it really can’t be denied that there is a deep groundswell of desire for the US to be a very different kind of country to that which, at least, the UK has known, or believed it has known, since, say, 1941. (I realise there is a lot that can be debated in and around that claim.)
Trump’s tariff weapon
When it comes to Trump’s new tariffs, these can be seen as an attack on economic liberalism, and to an extent they are motivated by economic protectionism. But they are not really, or at least not simply, about waging trade wars (although trade wars with China and the EU may be the result). More fundamentally, Trump is using trade as a weapon to intimidate other countries into doing his bidding in both economic and non-economic matters. The non-economic motive was most evident in the threat to Colombia, but was also present in those made to Mexico and Canada, and carried through against China.
The fact that Mexico and Canada struck last-minute deals on border protection to avoid the tariff attacks is in part an illustration of this, but it is also an irrelevance. For one thing, they are only temporary deals, and there is every reason to believe that, like a blackmailer, Trump will come back for more (and, even if he doesn’t, this episode will have done long-term damage to, for example, US-Canada relations). For another, the very rapidity of the reprieves is all of a piece with Trump’s almost cliched desire to ‘do the unexpected’ as a weapon designed to de-stabilize his perceived enemies. Indeed, as legal commentator David Allen Green has pointed out this week, although Trump is often described as ‘transactional’, his approach to deal-making is actually “anti-transactional”, so that “an agreement offers an opportunity to gain leverage, for a new negotiation, for a new exertion of power.”
However, whilst what is happening may be inflected through Trump’s baroque psychology (£), it is not reducible to that. He is both an expression of, and a vehicle for, a deep seam of sentiment in the US which sees the country as the put-upon victim of the international order (despite that order being largely the creation of the US). In that sense, Trump’s tariff attacks are part of the wider picture of a regime determined to use force to dismantle the constraints of law and convention abroad quite as much as those within the domestic sphere. That he has even spoken of the use of military force, extending to the sequestration of territory, against some of the US’s own allies means that, at the most basic level, the US can no longer be trusted by any of its allies.
Trump’s words and actions have therefore already fractured global society. It’s tempting to reach for historical analogies, which might range from Hoover’s Smoot-Hawley Tariff Act, to the America First Committee, to the endless debates about whether Trump is a fascist. But they really aren’t necessary. It’s enough to observe that he is what he is, now; doing what he is doing, now. Perhaps in the future it may seem an overblown claim but, just at the moment, it is plausible to say that we are seeing the beginning of a new global divide between rules and brute force. It is also not necessary to romanticize ‘the rules-based international order’, or to sanitize the history of US foreign policy, to see this as a momentous and highly dangerous development, with the potential to shatter previous alliances and enforce more-or-less binary choices on almost every country in the world.
What of Brexit Britain?
If this analysis, or anything like it, is correct, then the issues it poses for the UK, specifically, go well beyond those of UK-EU relations, although they encompass those relations, and beyond those of tariffs. Thus most current discussions, which focus on Britain having to navigate a careful path in the event of a US-EU trade war, don’t fully address what is at stake. It is not even as simple as picking a side between the US and the EU. It is about picking a side between liberalism and illiberalism (or worse).
This would have created profound problems for the UK even without Brexit, given the role it had roughly established for itself as a ‘transatlantic bridge’. But EU membership would have half-addressed those problems, anchoring one end of the bridge even as the other imploded. As it is, the combination of Brexit and Trump 2.0 has burnt both ends. This poses questions about UK-EU relations, of course, but Trump hasn’t simply turned on the EU. In some ways, the bigger issue his presidency has raised for the UK is illustrated by his assault on Canada, not just with tariffs but with the extraordinary suggestion that it might “cease to exist” as an independent country and could become “America’s 51st State”.
This, then, is an attack on one of Britain’s closest and most longstanding allies, and, indeed, a country of which the British monarch is still the Head of State. The UK-Canada relationship is also, let us not forget, a prime example of the kind of ‘old friendship’ which the Brexiters claimed would be rekindled by leaving the EU. Some even continue to fantasise about ‘CANZUK’ and ‘the Anglosphere’. Moreover, Canada’s relationship with the EU was constantly held up as the template for what Britain’s should become.
In this sense, Trump’s hostility to Canada, quite as much as his hostility to the EU, presents a moment of choice. What, now, should Britain do? Keep quiet? Seek to ‘navigate’ a path to spare itself Trump’s disfavour whilst its ‘old friend’ takes its chances? Indeed one might ask what Farage, the man who always claims to stick to his principles, to care deeply about national sovereignty, and to have a hot-line to Trump, had to say about Canada this last week or so. The answer, so far as I can find, is nothing.
Similar questions apply not just to the UK’s relations with the EU, generally, but to those with Denmark, in particular, and with Greenland. They also apply, in a different way, to its relations with China, which Starmer’s government has recently tried to reset. And they also apply, again in different ways, to its relations with global institutions. To put all this a different way, the vision of, at least, the global Brexiters was of being ‘freed from the shackles of the EU’ in order to participate fully in a global order, including but not limited to a global trade order, an order to which the US now is wholly opposed and bent on destroying. Even the Brexiters’ more limited notion of the Anglosphere was predicated on the US as a bulwark of the ‘rules-based’ order. Equally, they looked to NATO as the sole international basis of UK defence and security, an approach which now looks increasingly precarious. So even if there had ever been a geo-political logic to Brexit, which there wasn’t, the entire basis of that logic is now rapidly disappearing.
A UK-US deal?
To the extent that the Brexiters have any response to this situation, it is the idea of the UK creating a Free Trade Agreement with the US (and/or an exemption from new punishment tariffs). Indeed, some clearly imagine that this, finally, will be a concrete demonstration of the benefits of Brexit.
However, it is an utterly inadequate response. Although there is no doubt that Trump will dangle this possibility in front of Starmer, that doesn’t mean he will do such a deal. In fact, as is already beginning to happen, he is likely to alternately hint that he is going to spare Britain or that he is going to punish us, just as a way of demonstrating his power. But even if he does a deal, his protectionism and nationalism, not to mention his own concept of deal-making, will mean that it will not be a good deal for the UK, and will come with numerous conditions. In any case, as Mexico and Canada are finding as regards USCMA, a deal with Trump is not worth the paper it is written on. His “anti-transactionalism” means he is always liable to make some new demands for obedience from the UK.
Most importantly of all, were a US-UK trade deal to happen in the new context Trump has created it would, for what at best would be only a small economic benefit, engender not just dismay but disgust from most of Britain’s friends and allies. Brexit Britain would cease to be regarded by them, as it has been since 2016, with bewilderment and even sympathy, but instead with loathing and revulsion, a Quisling in Trump’s global war.
The very idea that Brexiters like David Frost should think that their project is justified by the ‘freedom’ to act in such a cowardly and contemptible way shows the depths and desperation they have reached. Certainly their advocacy of dancing a humiliating jig to the tune of a capricious bully removes any vestigial illusion that they are in any way patriotic.
Starmer’s opportunity
The temptation for Starmer, partly as a matter of temperament, but partly because Brexit has left Britain in such an enfeebled position, will be to go on doing nothing and saying little other than platitudes. But inaction and quietude will amount to taking sides or, even worse, will be seen by each side as taking that of the other. Likewise, it will not silence the Brexiter call for doing a deal with the US, with Farage and his acolytes acting as Trump’s Fifth Column in British politics.
Conversely, Starmer has a real opportunity to exert leadership, and in the process has been gifted an opportunity to release Britain from the drift and dither to which it has been consigned by Brexit. He could, in one bound, position the UK as an international beacon of probity, as a strong regional partner, and perhaps even as a galvanizing convenor of medium-sized and small powers, and in the process marginalize Farage as an unpatriotic scoundrel. Similarly, resistance to closer EU ties from the Conservatives and their media supporters could be positioned as undermining Britain’s staunch support for its allies. Doing so would go with the grain of public opinion. Trump and his side-kick Musk are not popular in the UK. Equally, there is public support for closer relations with the EU rather than with the US, and probably (though I haven’t found polling data) for siding with Canada, Greenland/ Denmark, and perhaps even Panama, against Trump’s aggression.
In this way, all the talk still coming from Badenoch, amongst others, of ‘honouring the will of the British people’ and ‘retaining our hard-won Brexit freedoms’ as a reason to oppose the reset could at a stroke be derided as the tired repetition of long-outdated slogans, wrenching political discourse free of the detritus of 2016 and its aftermath. That wouldn’t imply re-opening the Brexit question, or crossing Labour’s ‘red lines’, but it would imply pursuing a maximalist reset with the EU, at speed, and with open enthusiasm rather than coyness and reluctance. Doing so would not just reset UK-EU relations, it would also reset UK international relations generally and, perhaps most importantly, reset the terms of domestic political debate.
Starmer may never have a better chance than now, and, if he is to take it, then the sooner the better if he is to get kudos for being at the forefront of this new global divide. Standing up to Trump in this way would not be easy or cost-free for Britain. Doing so would have significant security and economic ramifications. But the same is true of not doing so. And it’s even possible, given Trump’s bullying temperament, that standing up to him might earn Starmer a degree of grudging respect.
In some ways, Starmer is ideally placed to take this kind of stance. As I wrote recently, his persona and politics are very clearly aligned with the principles of ‘rational-legal authority’ in both the domestic and international spheres, placing him in direct contrast to Trump’s ‘anti-ruleism’. However, at the same time, and relatedly, he is almost preternaturally cautious, lacking vision and perhaps distrustful of the very concept of vision, and as a result inclined to ‘wait and see’ and to dodge hard choices. Hence his current rejection of the bare idea that there is a choice to be made between the US and the EU. That is misguided even if the choice is framed in that way. It is even more misguided when the choice is framed, as it should be, between accepting or rejecting Trump’s new barbarism.
*Of these attacks, probably none was more ludicrous than that of Kate Hoey. It isn’t only that she sees betrayal in the UK Prime Minister meeting EU leaders, it is that having campaigned for years against membership of the EU because of its supra-national powers she now proposes that the UK need not deal with the EU at all, but simply with its individual members. And this is only one aspect of the idiocy on display in just this short clip.
Showing posts with label Canada. Show all posts
Showing posts with label Canada. Show all posts
Friday, 7 February 2025
Friday, 8 March 2024
A country on hold
Writing this weekly blog creates a certain rhythm, though the nature of it has changed over the years. In fact, in the early years it wasn’t always weekly, as I often wrote several short posts in some weeks. But it gradually settled into a weekly pattern of posting on a Friday morning, not necessarily rounding-up the week’s events but certainly based around them. As that happened, the length of posts also settled to being about 2000-3000 words each week. Occasionally they become even longer, but I try to keep to a 3000-word ceiling although it is often difficult to do so, and sometimes impossible.
For a long time, throughout most of 2017-2019, I more or less knew what the week ahead would bring in terms of particular scheduled parliamentary events, or negotiations with the EU. Of course the exact detail of what those events would bring could be highly unpredictable so that, often, the bulk of the post would be written in the small hours of Friday morning.
Since that period things have changed in that it is less common for there to be a predictable set of events, with the consequence that almost every Sunday and Monday I find myself thinking that there will be nothing to write about this week. Yet, invariably, and despite Brexit featuring less in the news than it did in previous years, there has always been plenty to say by Friday and the problem is just that of trying to find a coherent theme which isn’t simply a repeat of things I’ve already written, and which keeps close to my self-imposed word limit.
No news is bad news
All of this is a long-winded prelude to saying that this week, for the first time in over seven years, there is almost nothing new worth saying about Brexit. Of course there are, as always, a few news stories of note. In last Friday’s Financial Times (£) Valentina Romei, drawing on the latest ONS figures, reported that “UK goods trade has suffered its steepest five-year fall on record”, with Brexit at least one factor, and possibly a major factor. But it was hardly a huge surprise, any more than was the usual ‘yesbuttery’ from the usual suspects.
The most superficially plausible objection to Romei’s report is that the focus on UK goods trade ignores the far better post-Brexit performance in services trade, as discussed by Emily Fry, the Resolution Foundation's Senior Economist. However, as John Springford of the Centre for European Reform explains, “if the UK had remained an EU member, its services exports would probably have grown much faster”. Brexiters would no doubt huff and puff about the ‘probably’, but the basic fact remains that there’s no plausible reason to explain how three years of increased trade barriers with the UK’s biggest trade partner, and only very marginal, and very recent, reductions in (mainly goods) trade barriers with a couple of very small trading partners, could possibly mean anything other than less trade, including less services trade, being done than would otherwise have been the case.
To avoid this obvious fact, Brexiters go through all sorts of contortions, with Kemi Badenoch yesterday using the shop-soiled trick of claiming post-Brexit export growth by using figures without adjusting for inflation. It’s like someone who earns £30K a year saying that they are much better off than their granddad was because he only earned £25K when he was their age. It’s bad enough when it comes from some pseudonymous Twitter account, or some woeful Brexit-dogma website. But this was the Trade Secretary, giving a major speech the central point of which was the need for "realism, realism, realism" in discussions about trade! Inevitably it was picked up to be the front page of this morning’s Express, a screaming headline of Brexit’s success, based on a claim which bears as much relation to economic realism as potato printing does to fine art.
Relatedly, we have also learned this week that, on top of the recently announced ‘pause’ in the UK-Canada negotiations, an imminent UK-India Free Trade Agreement is looking increasingly unlikely. But that’s not surprising, either, and it makes little difference anyway. The entire idea that having a trade policy independent of the EU’s is of any value was always bogus. Even the now moribund idea of a UK-US trade deal, supposedly the great economic prize of Brexit, would make only a tiny dent in the costs of leaving the EU. In passing, it is almost forgotten now but, during the referendum, the then real possibility of an EU-US trade deal (TTIP) was regarded with horror by many Brexiters and touted by some as the main reason to leave (on the spurious grounds that it would have meant privatization of the NHS). It’s another small reminder of the contradictions, dishonesty and opportunism with which Brexit was sold.
Meanwhile, ‘Global Britain’ Brexit ideologue Daniel Hannan is reduced (£) to lauding Argentina’s Javier ‘El Loco’ Milei as an inspirational model for British economic policy. This, apparently, is what we could have had if only Liz Truss had been allowed free rein and, in fairness, that, at least, may be true. This one was especially striking because prior to the referendum one of the most perspicacious warnings about Brexit came from the Conservative commentator Garvan Walshe, in which he suggested that it would set Britain on a pathway of decline similar to that which Argentina took from its relative prosperity at the start of the twentieth century. In doing so, he noted that the country “suffers from a chronic political virus: with only brief interludes, it has since the 1930s been run by populists who maintain that the system is run for the elite, and against the people; that any experts are the system’s hired clerks, their wisdom corrupted by money; that the plain anger of the ordinary man isn’t just right, but righteous”. Now, Milei’s loony-tunes regime, which exemplifies such ‘anti-Establishment populism’, is proposed by Hannan as the template for post-Brexit Britain. At least it shows that one thing can be relied upon: if nothing else, there will always in any given week be one, and probably several, insane articles by Brexiters in the Telegraph.
Other than that, the sorry saga about import control introduction also continues to limp on, this week with the news that physical checks on goods moving from Ireland to Wales are unlikely to begin before spring of 2025. This is a delay within a delay in that, as is well-known, controls on imports from the EU have been delayed five times, and are only this year being implemented in full, with the physical checks aspect due to begin at the end of April. However, goods from Ireland (which mainly route through Welsh ports, especially Holyhead), were already exempted from that date, and checks were due to begin in October 2024. It is that latter date which now looks set to slip.
That these checks serve important purposes is something I’ve written about before, with one of them being to reduce the risk of contaminated foodstuffs entering the country. Without reprising the detail, this risk is increased by Brexit not because EU goods have ‘suddenly become dangerous’ (as Brexiters invariably sneer when these risks are mentioned) but because the UK no longer has full access to the EU databases that help to track criminal and accidental dangers, and relies on a rather patchy, understaffed and underfunded system of its own. The importance of this increased risk is shown by this week’s reports of soaring hospital admissions for food poisoning, some of which is attributable to Brexit.
Exactly how much is down to Brexit is difficult, probably impossible, to know. There are certainly cases, such as a major salmonella outbreak last year linked to Polish poultry, where EU imports are to blame. But of course it cannot be proved definitively that this would not have happened without Brexit, for the simple reason that the risks were not, and never could be, completely eliminated by EU membership and nor can they be by import checks. The point is that, in the absence of EU membership and of import controls, these risks are increased, in principle, and so it is hardly unreasonable to think that the observed increase of cases, in practice, is linked to this. It is just one of many ways in which, with almost no public recognition of the reason, Brexit makes our lives a little bit worse, contributing to an aggregate which degrades our overall quality of life, with everything becoming more grubby and more ramshackle as the damage accumulates.
Waiting for god knows what
So, yes, there is some Brexit news, as always. But the reality is that the entire British polity is now on hold, waiting for an election with an almost palpable impatience. Even Tory MPs, leaving aside the many, currently numbering sixty-two, who have announced they won’t be standing again, seem to be gagging for the orgy of blood-letting that will follow. We have a rotting, maggoty sack of a government which is clearly bereft of any kind of policy agenda whatsoever, and certainly of any Brexit agenda. It's true that many of its backbenchers still harbour fantasies of massive regulatory divergence, but the government knows that they are totally impractical and would be heavily resisted by business organizations.
In fact, this government has no purpose at all other than to cling on to the trappings of power, and persists simply in the hope that the opinion polls may improve if it does so for long enough, a hope which rests primarily not upon anything which it may do, but upon the Labour Party committing some kind of massive error. Conversely, this means that the Labour Party are now animated solely by the desire to ensure that they commit no such error before the election. As regards Brexit, that means saying as little as possible, and promising as little as possible.
Notably, in the main political and economic event of the week, the Budget, Brexit was not mentioned once in either Jeremy Hunt’s speech or Keir Starmer’s response (even though the OBR forecasts that accompanied it stuck to their estimate that the evidence continues to support their original calculation that GDP will be 4% lower in the long-term than it would otherwise have been). If this silence persists – and, frankly, there’s no doubt that it will – then the Tories will go into the election saying almost nothing about Brexit, their defining policy since 2016 and their flagship policy at the last election, for the simple reason there is nothing to boast about and the people who still support it mostly think that the government made a mess of it. And Labour will do the same due to the (not unreasonable) fear that to do otherwise might give the Tories a chance to re-group around a ‘save Brexit’ slogan, perhaps even to the extent of spiking the cannibalization of their vote by the Reform Party.
That we have arrived at this situation is actually quite remarkable, and the more so since, as I recorded at the time, the details of Brexit barely featured in either the 2017 election or the 2019 election. So this great ‘national liberation’, this economic and geo-political reset will, once again, and despite all we now know about its consequences, be left as something virtually undiscussed, in substantive terms, since the short and stupid referendum campaign of 2016.
Labour in power?
Assuming Labour win the election, whenever it comes, it’s at least possible that Brexit, or, rather, the UK’s relationship with the EU will become discussable again. That’s partly for the reasons of security and defence which I’ve discussed in recent posts, as these are the areas where the Labour leadership is already indicating it is keen to deepen the relationship. But the economic issues won’t go away. It’s difficult to exaggerate the scale of the mess Labour are going to inherit, not least because, to the extent that the current government has any policy at all, it is to deliberately ensure that the mess be as bad as possible.
The political comparisons with the 1997 election may have some validity, but the economic outlook will be totally different, and more like that (or those) of 1974, in the era of stagflation. The elections that year, it bears recalling, occurred when the Tories had just implemented a European policy about which the Labour Party was deeply split, and entertained reversing by holding the 1975 referendum. I’m not suggesting that is a direct parallel, but Labour will have to fix the economy they inherit, and especially its impact on public services, and do so very quickly if they are to avoid voter disillusionment. For such disillusionment is likely to set in rapidly given that the main thing propelling Starmer to power is disaffection with the Tories rather than enthusiasm for Labour.
That will make the ongoing negative impact of Brexit more difficult to avoid than it has been in Opposition. The 4% drag anchor on growth that the OBR estimate (and other credible estimates are even higher) is a big elephant to ignore, especially given Starmer’s pledge to make the UK the fastest-growing economy in the G7. Attention will quickly focus on what, realistically, might be achieved via the 2026 review of the Trade and Cooperation Agreement (TCA), with some recent signs that, from an EU perspective, there may be more scope than was once thought. That isn’t altogether unrelated to the security situation and certainly isn’t unrelated to whatever the outcome of the US Presidential election turns out to be.
But even the most maximal refinements possible within the TCA framework won’t do much for economic growth. This week the former MEP Andrew Duff has published a detailed, gradual plan for a bolder approach that Labour could take, and, for all the red lines that Starmer has drawn, it’s not hard to see this plan, or something like it, gaining a lot of support within his party, much of which is far less reconciled to Brexit than is its leadership. Even Duff’s first step, a UK-EU customs treaty, would have a strong economic rationale in terms of reducing some border frictions, and therefore compliance costs. Brexiters would screech about the loss of an ‘independent trade policy’ (even though the loss would be purely symbolic), but they will do that about anything Labour do, no matter how unambitious, that they could portray as a ‘betrayal of Brexit’ (as Suella Braverman already started to do during the Budget debate).
How loud would those screeches be, and how much political cut-through would they have? There are two, related, factors here. One is that it shouldn’t be under-estimated how much a change of government will change the dynamics of the right-wing media, which will become more compliant and much less influential overnight, as will the numerous thinktanks that have thrived on Tory patronage. That would be especially true if there was a huge wipe-out of the Tories. The scale of their defeat, and of a Labour victory, is the second factor. Whatever its size, the Tories look set to fall into vicious in-fighting which will consume most of their energy. And if it is as large as the largest current predictions, Labour’s freedom of action would be very considerable, at least initially. The question, however, remains the extent to which they would use it.
There is also, as ever, the question of whether the EU would enter into a significant change in the relationship. It can’t be assumed that even a total Tory meltdown would, in and of itself, make much difference to this. After all, the much-cited parallel of the 1993 Canadian election, which saw the near-extinction of the Progressive Conservative Party, ultimately led to a realignment of the right which brought the populist Stephen Harper to power in 2006.
The death row government
All of this is for the future. For now, Sunak will hold on, conceivably only until May but more likely until the autumn, especially as this week’s budget doesn’t seem to have ‘landed’ especially well. That means it is quite likely that we will have to endure another ‘fiscal event’, as well as whatever other nonsense they come up with, before the election. It’s a ludicrous and abhorrent situation, for all sorts of reasons, not limited to Brexit; the political equivalent of those ghastly death row stories where, long-ago convicted of some squalidly bestial crime, the inmate rots for years waiting to be strapped into the electric chair.
But, as the cliché has it, ‘we are where we are’. There will probably be many more weeks to come when there is little to say about politics, and even less about Brexit other than to record the endless drip of damage it is doing, and the endless drip of evidence that the promises made for it were false.
For a long time, throughout most of 2017-2019, I more or less knew what the week ahead would bring in terms of particular scheduled parliamentary events, or negotiations with the EU. Of course the exact detail of what those events would bring could be highly unpredictable so that, often, the bulk of the post would be written in the small hours of Friday morning.
Since that period things have changed in that it is less common for there to be a predictable set of events, with the consequence that almost every Sunday and Monday I find myself thinking that there will be nothing to write about this week. Yet, invariably, and despite Brexit featuring less in the news than it did in previous years, there has always been plenty to say by Friday and the problem is just that of trying to find a coherent theme which isn’t simply a repeat of things I’ve already written, and which keeps close to my self-imposed word limit.
No news is bad news
All of this is a long-winded prelude to saying that this week, for the first time in over seven years, there is almost nothing new worth saying about Brexit. Of course there are, as always, a few news stories of note. In last Friday’s Financial Times (£) Valentina Romei, drawing on the latest ONS figures, reported that “UK goods trade has suffered its steepest five-year fall on record”, with Brexit at least one factor, and possibly a major factor. But it was hardly a huge surprise, any more than was the usual ‘yesbuttery’ from the usual suspects.
The most superficially plausible objection to Romei’s report is that the focus on UK goods trade ignores the far better post-Brexit performance in services trade, as discussed by Emily Fry, the Resolution Foundation's Senior Economist. However, as John Springford of the Centre for European Reform explains, “if the UK had remained an EU member, its services exports would probably have grown much faster”. Brexiters would no doubt huff and puff about the ‘probably’, but the basic fact remains that there’s no plausible reason to explain how three years of increased trade barriers with the UK’s biggest trade partner, and only very marginal, and very recent, reductions in (mainly goods) trade barriers with a couple of very small trading partners, could possibly mean anything other than less trade, including less services trade, being done than would otherwise have been the case.
To avoid this obvious fact, Brexiters go through all sorts of contortions, with Kemi Badenoch yesterday using the shop-soiled trick of claiming post-Brexit export growth by using figures without adjusting for inflation. It’s like someone who earns £30K a year saying that they are much better off than their granddad was because he only earned £25K when he was their age. It’s bad enough when it comes from some pseudonymous Twitter account, or some woeful Brexit-dogma website. But this was the Trade Secretary, giving a major speech the central point of which was the need for "realism, realism, realism" in discussions about trade! Inevitably it was picked up to be the front page of this morning’s Express, a screaming headline of Brexit’s success, based on a claim which bears as much relation to economic realism as potato printing does to fine art.
Relatedly, we have also learned this week that, on top of the recently announced ‘pause’ in the UK-Canada negotiations, an imminent UK-India Free Trade Agreement is looking increasingly unlikely. But that’s not surprising, either, and it makes little difference anyway. The entire idea that having a trade policy independent of the EU’s is of any value was always bogus. Even the now moribund idea of a UK-US trade deal, supposedly the great economic prize of Brexit, would make only a tiny dent in the costs of leaving the EU. In passing, it is almost forgotten now but, during the referendum, the then real possibility of an EU-US trade deal (TTIP) was regarded with horror by many Brexiters and touted by some as the main reason to leave (on the spurious grounds that it would have meant privatization of the NHS). It’s another small reminder of the contradictions, dishonesty and opportunism with which Brexit was sold.
Meanwhile, ‘Global Britain’ Brexit ideologue Daniel Hannan is reduced (£) to lauding Argentina’s Javier ‘El Loco’ Milei as an inspirational model for British economic policy. This, apparently, is what we could have had if only Liz Truss had been allowed free rein and, in fairness, that, at least, may be true. This one was especially striking because prior to the referendum one of the most perspicacious warnings about Brexit came from the Conservative commentator Garvan Walshe, in which he suggested that it would set Britain on a pathway of decline similar to that which Argentina took from its relative prosperity at the start of the twentieth century. In doing so, he noted that the country “suffers from a chronic political virus: with only brief interludes, it has since the 1930s been run by populists who maintain that the system is run for the elite, and against the people; that any experts are the system’s hired clerks, their wisdom corrupted by money; that the plain anger of the ordinary man isn’t just right, but righteous”. Now, Milei’s loony-tunes regime, which exemplifies such ‘anti-Establishment populism’, is proposed by Hannan as the template for post-Brexit Britain. At least it shows that one thing can be relied upon: if nothing else, there will always in any given week be one, and probably several, insane articles by Brexiters in the Telegraph.
Other than that, the sorry saga about import control introduction also continues to limp on, this week with the news that physical checks on goods moving from Ireland to Wales are unlikely to begin before spring of 2025. This is a delay within a delay in that, as is well-known, controls on imports from the EU have been delayed five times, and are only this year being implemented in full, with the physical checks aspect due to begin at the end of April. However, goods from Ireland (which mainly route through Welsh ports, especially Holyhead), were already exempted from that date, and checks were due to begin in October 2024. It is that latter date which now looks set to slip.
That these checks serve important purposes is something I’ve written about before, with one of them being to reduce the risk of contaminated foodstuffs entering the country. Without reprising the detail, this risk is increased by Brexit not because EU goods have ‘suddenly become dangerous’ (as Brexiters invariably sneer when these risks are mentioned) but because the UK no longer has full access to the EU databases that help to track criminal and accidental dangers, and relies on a rather patchy, understaffed and underfunded system of its own. The importance of this increased risk is shown by this week’s reports of soaring hospital admissions for food poisoning, some of which is attributable to Brexit.
Exactly how much is down to Brexit is difficult, probably impossible, to know. There are certainly cases, such as a major salmonella outbreak last year linked to Polish poultry, where EU imports are to blame. But of course it cannot be proved definitively that this would not have happened without Brexit, for the simple reason that the risks were not, and never could be, completely eliminated by EU membership and nor can they be by import checks. The point is that, in the absence of EU membership and of import controls, these risks are increased, in principle, and so it is hardly unreasonable to think that the observed increase of cases, in practice, is linked to this. It is just one of many ways in which, with almost no public recognition of the reason, Brexit makes our lives a little bit worse, contributing to an aggregate which degrades our overall quality of life, with everything becoming more grubby and more ramshackle as the damage accumulates.
Waiting for god knows what
So, yes, there is some Brexit news, as always. But the reality is that the entire British polity is now on hold, waiting for an election with an almost palpable impatience. Even Tory MPs, leaving aside the many, currently numbering sixty-two, who have announced they won’t be standing again, seem to be gagging for the orgy of blood-letting that will follow. We have a rotting, maggoty sack of a government which is clearly bereft of any kind of policy agenda whatsoever, and certainly of any Brexit agenda. It's true that many of its backbenchers still harbour fantasies of massive regulatory divergence, but the government knows that they are totally impractical and would be heavily resisted by business organizations.
In fact, this government has no purpose at all other than to cling on to the trappings of power, and persists simply in the hope that the opinion polls may improve if it does so for long enough, a hope which rests primarily not upon anything which it may do, but upon the Labour Party committing some kind of massive error. Conversely, this means that the Labour Party are now animated solely by the desire to ensure that they commit no such error before the election. As regards Brexit, that means saying as little as possible, and promising as little as possible.
Notably, in the main political and economic event of the week, the Budget, Brexit was not mentioned once in either Jeremy Hunt’s speech or Keir Starmer’s response (even though the OBR forecasts that accompanied it stuck to their estimate that the evidence continues to support their original calculation that GDP will be 4% lower in the long-term than it would otherwise have been). If this silence persists – and, frankly, there’s no doubt that it will – then the Tories will go into the election saying almost nothing about Brexit, their defining policy since 2016 and their flagship policy at the last election, for the simple reason there is nothing to boast about and the people who still support it mostly think that the government made a mess of it. And Labour will do the same due to the (not unreasonable) fear that to do otherwise might give the Tories a chance to re-group around a ‘save Brexit’ slogan, perhaps even to the extent of spiking the cannibalization of their vote by the Reform Party.
That we have arrived at this situation is actually quite remarkable, and the more so since, as I recorded at the time, the details of Brexit barely featured in either the 2017 election or the 2019 election. So this great ‘national liberation’, this economic and geo-political reset will, once again, and despite all we now know about its consequences, be left as something virtually undiscussed, in substantive terms, since the short and stupid referendum campaign of 2016.
Labour in power?
Assuming Labour win the election, whenever it comes, it’s at least possible that Brexit, or, rather, the UK’s relationship with the EU will become discussable again. That’s partly for the reasons of security and defence which I’ve discussed in recent posts, as these are the areas where the Labour leadership is already indicating it is keen to deepen the relationship. But the economic issues won’t go away. It’s difficult to exaggerate the scale of the mess Labour are going to inherit, not least because, to the extent that the current government has any policy at all, it is to deliberately ensure that the mess be as bad as possible.
The political comparisons with the 1997 election may have some validity, but the economic outlook will be totally different, and more like that (or those) of 1974, in the era of stagflation. The elections that year, it bears recalling, occurred when the Tories had just implemented a European policy about which the Labour Party was deeply split, and entertained reversing by holding the 1975 referendum. I’m not suggesting that is a direct parallel, but Labour will have to fix the economy they inherit, and especially its impact on public services, and do so very quickly if they are to avoid voter disillusionment. For such disillusionment is likely to set in rapidly given that the main thing propelling Starmer to power is disaffection with the Tories rather than enthusiasm for Labour.
That will make the ongoing negative impact of Brexit more difficult to avoid than it has been in Opposition. The 4% drag anchor on growth that the OBR estimate (and other credible estimates are even higher) is a big elephant to ignore, especially given Starmer’s pledge to make the UK the fastest-growing economy in the G7. Attention will quickly focus on what, realistically, might be achieved via the 2026 review of the Trade and Cooperation Agreement (TCA), with some recent signs that, from an EU perspective, there may be more scope than was once thought. That isn’t altogether unrelated to the security situation and certainly isn’t unrelated to whatever the outcome of the US Presidential election turns out to be.
But even the most maximal refinements possible within the TCA framework won’t do much for economic growth. This week the former MEP Andrew Duff has published a detailed, gradual plan for a bolder approach that Labour could take, and, for all the red lines that Starmer has drawn, it’s not hard to see this plan, or something like it, gaining a lot of support within his party, much of which is far less reconciled to Brexit than is its leadership. Even Duff’s first step, a UK-EU customs treaty, would have a strong economic rationale in terms of reducing some border frictions, and therefore compliance costs. Brexiters would screech about the loss of an ‘independent trade policy’ (even though the loss would be purely symbolic), but they will do that about anything Labour do, no matter how unambitious, that they could portray as a ‘betrayal of Brexit’ (as Suella Braverman already started to do during the Budget debate).
How loud would those screeches be, and how much political cut-through would they have? There are two, related, factors here. One is that it shouldn’t be under-estimated how much a change of government will change the dynamics of the right-wing media, which will become more compliant and much less influential overnight, as will the numerous thinktanks that have thrived on Tory patronage. That would be especially true if there was a huge wipe-out of the Tories. The scale of their defeat, and of a Labour victory, is the second factor. Whatever its size, the Tories look set to fall into vicious in-fighting which will consume most of their energy. And if it is as large as the largest current predictions, Labour’s freedom of action would be very considerable, at least initially. The question, however, remains the extent to which they would use it.
There is also, as ever, the question of whether the EU would enter into a significant change in the relationship. It can’t be assumed that even a total Tory meltdown would, in and of itself, make much difference to this. After all, the much-cited parallel of the 1993 Canadian election, which saw the near-extinction of the Progressive Conservative Party, ultimately led to a realignment of the right which brought the populist Stephen Harper to power in 2006.
The death row government
All of this is for the future. For now, Sunak will hold on, conceivably only until May but more likely until the autumn, especially as this week’s budget doesn’t seem to have ‘landed’ especially well. That means it is quite likely that we will have to endure another ‘fiscal event’, as well as whatever other nonsense they come up with, before the election. It’s a ludicrous and abhorrent situation, for all sorts of reasons, not limited to Brexit; the political equivalent of those ghastly death row stories where, long-ago convicted of some squalidly bestial crime, the inmate rots for years waiting to be strapped into the electric chair.
But, as the cliché has it, ‘we are where we are’. There will probably be many more weeks to come when there is little to say about politics, and even less about Brexit other than to record the endless drip of damage it is doing, and the endless drip of evidence that the promises made for it were false.
Friday, 2 February 2024
Brexit: a mug's eyeful
When I was a teenager, after much saving up from my ‘Saturday job’ money, I bought my first ever stereo device, a portable radio cassette player (younger readers may need to consult a dictionary). Not only did it have – gulp! – two speakers, but a whole array of controls, lights, and little graphs printed on it, as if precisely measuring all sorts of important sound variables.
It was my pride and joy until I showed it to my brother-in-law, a marketing manager, who took one look at it, laughed, and said “that’s what we call a mug’s eyeful”. I had never heard the expression, but he explained it meant something which was made to look impressive with all sorts of superficial features but, not only did they have no real function, they disguised the underlying shoddiness of the product itself. And, indeed, he was right. The only control that served any purpose was the volume knob, and that soon broke, although not as soon as the cassette player began to mangle tapes, the aerial snapped, and the carrying handle fell off.
To anyone with any understanding of what it meant, it was obvious from the outset that Brexit was a mug’s eyeful. All the things which it was promised would follow from ‘taking back control’ were as illusory as the supposedly sophisticated controls on my pitiful boombox. Meanwhile, all the technical-sounding explanations, from the UK’s trade deficit guaranteeing a great deal to semi-digested factoids about, for example, GATT Article XXIV, that were littered throughout the Brexit prospectus were as meaningless and misleading as the pathetic fake graphs on its stupid plastic case.
Damaged goods
It is now four years since the UK actually left the EU, and, despite the government producing a predictably misleading though highly glossy anniversary brochure extolling ‘Britain’s Brexit success’, it is obvious to all but the most dull-witted or obtuse of Brexiters that it has been a failure. Nigel Farage said as much months ago. And just this week, Ben Habib – the creepy Brexit Party ex-MEP now standing for Reform in the by-election caused by creepy Brexiter Tory Peter Bone’s scandal-ridden demise – tweeted that those who voted for Brexit had “got nothing”. But of course, since they were the ones who sold this mug’s eyeful to a gullible public, they ascribe that failure to it not having been done properly. Thus Daniel Hannan, rather than apologise for his magniloquent visions of a post-Brexit utopia, discussed in last week’s post, can now only offer a threnody (£) for what might have been, but for “the Blob”, illustrated by a peculiar, and somewhat inaccurate, discussion of tariffs on Moroccan tomatoes.
And where once Brexiters petitioned for January 31 to be celebrated annually as ‘National Independence Day’, the best Roger Bootle, a one-time member of the ‘Economists for Brexit’ group, could come up with (£) was that it has not “brought the disaster that some other economists envisaged”. Underwhelming as that claim is, it was only achieved by the now-standard tricks of referring to parts of one of the pre-Brexit Treasury forecasts, whilst also dismissing as “elaborate guesswork” the various post-Brexit estimates of its costs.
Perhaps the nearest thing to an admission of their folly came in an article on the Institute of Economic Affairs (IEA) website, suggesting that “in retrospect, the libertarian argument supporting Brexit appears to have been fundamentally flawed in its understanding of the European Union’s nature and functions”. It’s the closest I’ve seen to a recognition that it’s not just that Brexit hasn’t led to the UK becoming ‘Singapore-on-Thames’, but that it was never likely to – something rarely acknowledged by either the libertarian Brexiters who wanted that outcome or, for that matter, by those anti-Brexiters who feared it was ‘the real agenda’ behind Brexit. It is also an interesting piece in revealing what to others is obvious, given their anti-state ideology, which is that libertarians never had any interest in the UK state ‘regaining sovereignty’, even though many of them opportunistically parroted that line.
Meanwhile, back in the real world, evidence of the damage of Brexit mounts up at an alarming, and possibly accelerating, rate. Recent examples are chronicled by Anthony Robinson for Yorkshire Bylines and Edwin Hayward in the New European, and I won’t try to cover them all here. But it is fitting that, around the time of this anniversary, the three biggest of them relate to very central parts of Brexit.
Trade in British and Canadian goods
The first is the stalling of the UK-Canada trade talks. This is important both in itself and for wider, partly symbolic, reasons. One of the things which I, and many other commentators, got wrong in the early days of the Brexit process was to think that it would prove very difficult, and perhaps impossible, for the UK to ‘roll over’ the Free Trade Agreements (FTAs) made between the EU and various third countries, and especially do so on the same terms, and by the end of the transition period. In fact, this was largely achieved, usually maintaining similar terms and occasionally, as in the case of Japan, slightly improving them (although to little, if any, practical benefit according to the UK Trade Policy Observatory).
As regards Canada, a continuity agreement was reached in November 2020, but certain parts of it contained temporary provisions, the permanence of which formed part of negotiations for a new trade agreement to replace the continuity agreement, and it is these negotiations which have now broken down. This does not put an end to the continuity agreement in its entirety, although it was originally intended only to be an interim agreement, but it does mean that those parts which were temporary will lapse or have done so. The most high-profile example of the temporary provisions related to the quota for tariff-free exports of British cheese to Canada, which expired at the end of 2023, and to rules of origin for tariff application in the automotive sector, as well as, in rather more complicated ways, trade in beef and pork.
Along the lines that I suggested in my previous post, it is necessary to be careful not to treat this simply as a Brexit bad news story. After all, the main criticism of the new trade deals the UK has done with Australia and New Zealand was that, in its desire to demonstrate its ‘post-Brexit freedom’ the government had simply accepted any terms they were offered, regardless of their effects on, especially, British farmers. So this breakdown of talks with Canada, which was initiated by the UK, can be read as a sign of a less dogma-driven approach and, certainly, has been welcomed as the “right decision” by the National Farmers Union mainly because the alternative would have been to lower UK food standards, especially as regards hormones in beef, in exchange for tariff-free access for cheese.
Nevertheless, as the British Chambers of Commerce emphasised, it is a blow for British cheese exporters and also for car-makers, and a blow which is, specifically, a cost of Brexit since it was the continuity agreement which made temporary what, under the EU-Canada agreement, would have been permanent had Britain stayed in the EU. This may only be a small blow to the Brexiter claim that they would be able to rollover trade deals, but it is a much bigger blow to their proposition that, outside the EU, the UK could negotiate deals which fitted its specific interests rather than for those interests to be subordinated to, and diluted by, those of the EU and its members.
This matters, because the central plank of the Brexiters’ trade case is the freedom to have an independent trade policy, and it’s pretty much the only argument they have for not being in a customs union with the EU. The benefits of that freedom are never remotely going to outweigh the costs of leaving the EU single market – and it is a mystery why so many ‘free-trader’ Brexiters, like Bootle, continue to insist that those costs are very low, whilst also insisting that the benefits of trade deals could be high – but it’s not even clear that they outweigh the costs of having left the customs union.
It also matters in particular ways because the country in question is, specifically, Canada. On the one hand, that is significant symbolically given the idea held by ‘Ladybird Brexiters’ like Hannan, that Commonwealth countries and, especially, the ‘Dominions’, would fall over themselves to ‘renew old friendships’. That, and the associated ‘CANZUK’ fantasy, was based on a mixture of imperial nostalgia, ignorance about the modern nature of those countries, and quite breath-taking naivety about the tough realities of trade negotiations. On the other hand, it is significant practically, at least potentially, because Canada is a member of CPTPP and has yet to ratify Britain’s membership, something the Brexiters have made the centrepiece of their claims for the benefits of Brexit. As things stand, the Canadian government has said that this latest development will not affect CPTPP accession, but it is quite possible that it will revive opposition from Canadian farming lobbies to ratification.
Import controls on EU goods
The second big story is the next stage of the introduction of import controls on certain goods coming from the EU. It isn’t quite accurate to say, as some media reports do, that it is the beginning of such controls, because controls on some high-risk imports did start when the transition period ended. However, these latest controls on medium-risk goods, mainly cut flowers, fish, meat and dairy products, have been much delayed.
I discussed last week, as I have done in the past, what the likely consequences of their introduction will be, but one thing left hanging was what last week’s announcement about fruit and vegetables meant. My understanding now is that it moved most such produce into the medium-risk category, thus including it in the new paperwork requirements that started this week and the new inspection regime which will come into force at the end of April, but temporarily kept it as low-risk until the end of October, at which point fruit and vegetables, too, will require paperwork and be liable for inspection.
All of this will necessarily add to the costs of trade, and comes against a background in which already, according to a survey reported in the Financial Times this week (£), three-quarters of British firms who trade with the EU say that their sales and profitability have declined as a result of Brexit. The new controls will add to this burden, and, for consumers, adversely impact prices and choice, and probably shelf-life.
I also discussed last week why it is that import controls are necessary, despite some Brexiters still being unable to grasp this and, right on cue, up popped Jacob Rees-Mogg to squeak that introducing them is “totally stupid”, and that he had opposed doing so when Brexit Opportunities Minister (a post, be it noted, that no longer exists, and small wonder since it was the definition of a sinecure). That ignorance or dishonesty goes to the heart of why Britain was not ready to introduce the controls on time, for, astonishingly, it was not officially admitted by any government minister – Michael Gove – that they were inevitable until February 2020, after Britain had actually left the EU.
That in turn points to a deeper dishonesty. Anyone who understood the issue knew this from the moment that Theresa May explicitly confirmed that Brexit meant hard Brexit, in January 2017, and the government itself began to prepare for it from at least 2018. The reticence about telling the public was surely because, whilst there was even the thinnest chance of Brexit being abandoned, the government didn’t want to be open about what it meant.
Great Britain and Northern Ireland Internal Market goods
And finally, Northern Ireland, the hardy perennial of Brexit mess and dishonesty. That the Northern Ireland Assembly will resume sitting because the DUP have done a deal with the government is unalloyed good news. What that deal consists of and how it will play out in both practical and political terms is much less easy to assess, and no doubt I will write more about it in the future. Its detail was released by the government as a Command Paper entitled 'Safeguarding the Union' on Wednesday, parts of which need to be read in conjunction with a draft decision of the Joint Committee overseeing the Withdrawal Agreement (JCWA), released rather more quietly the evening before.
These documents are quite long and, in places, highly technical but my initial understanding* is that the changes are substantive in offering easements to border processes, especially on movements from Great Britain (GB) to Northern Ireland (NI). In very brief, the most important of these is to designate most goods (though not including most of those designated for further processing in Northern Ireland) moving between GB and NI as ‘low risk’, therefore exempting them from customs paperwork and removing routine checks if they come from companies signed up to the ‘Trusted Trader’ register and if they are destined never to leave NI.
Such goods will now be able to use the ‘green lane’ which, symbolically, but in a context where symbols greatly matter, is going to be renamed the UK Internal Market line. There is also some relaxation of processes and checks relating to products, including agrifood products, imported from the rest of the world so long as they are not at risk of entering the EU, and this also means that Northern Ireland will have the benefits (such as they are) of the UK’s independent trade policy.
However, the fundamental architecture of the Northern Ireland Protocol and the Windsor Framework remains unchanged. This is important, since it explains why there is very little indication, at least so far, that the EU (or, especially important, Ireland) are or will be unhappy with what has been agreed, though there was just a hint yesterday that that could change. Indeed, much of the Command Paper seems to be a restatement of the ways in which the Windsor Framework acts to make the Protocol more workable with, in some cases, proposals to ‘enshrine’ these in UK law by amending various pieces of legislation including the EU (Withdrawal) Act and the Internal Market Act.
Even so, aspects of the changes mentioned in the Command Paper and fleshed out by the JCWA document do amount to legal changes in the Windsor Framework, at least according to Sir Jonathan Jones (the former head of the Government Legal Service who resigned over the potentially illegal clauses of the Internal Market Bill) who surely speaks with authority. Actually, that in itself is an indication that what is under way is occurring within the Windsor Framework and in conjunction with the EU, and the Command Paper is explicit that some of its proposals will need further JCWA agreement. In other words, we do not seem to be back to the days of the Internal Market Bill, or for that matter the Northern Ireland Protocol Bill, where there had been proposals for the UK unilaterally to change the terms of what had been agreed with the EU.
At the same time, that de facto legal changes have been made to the Windsor Framework could be regarded as a victory for the DUP, who say it confounds critics who had said this was impossible, but such changes do not affect the fundamental fact of there still being an Irish Sea border, claims by DUP leader Sir Jeffrey Donaldson notwithstanding. Nor do they change the fact of Northern Ireland still being in the EU single market for goods. This means that there continues to be some opposition to the deal from within the DUP, and even more from other unionist parties, most notably Traditional Unionist Voice. Perhaps all these changes amount to is a ladder for the DUP to climb down, knowing full well how limited they are. Or perhaps the DUP have been gulled into believing them to be more significant than they are. Nor are these two possibilities mutually exclusive, since it may suit the DUP to accept them now but, in the future, to declare that they were deceived. In this and others senses, the long-run impact on Northern Irish politics remains unclear.
Regulation of goods
There is also a UK political dimension, since these changes entail the use of Statutory Instruments and some legislation, the crucial pieces of which were passed yesterday. This haste was presumably in order to get a swift resumption of the NI Assembly, but that may, as has happened before in the Brexit process, lead to very technical things having been agreed without anyone quite knowing what they mean in practice. There is a particular question, which is already exercising Brexiters (£), about whether the implication of it all may be to make future UK divergence from EU rules harder. This is because part of the deal means that parliament will have to be told if any future UK legislation has “significant adverse implications for Northern Ireland's place in the UK internal market”, as regulatory divergence related to goods surely would.
The government has denied that this prevents future divergence, and to the letter of the law I suppose that is true, since such legislation could still be passed regardless of what it means for Northern Ireland’s place in the UK internal market. But were that to happen, it would (or could) immediately re-open the issue of what checks are needed for the Sea border. Equally, it’s clear that the DUP believe the deal ensures that there will be no dynamic alignment of EU law and Northern Ireland law, yet it is hard to see how that can be true (as regards goods) under the basic terms of the Protocol, so again it suggests that what it will mean in practice is the UK as a whole staying aligned with such law so that unionists can depict the situation as simply one of Northern Ireland being the same as the rest of the UK whilst, effectively, still following EU law.
To add to the confusion, what I have not seen discussed anywhere yet is what all this means for any passive divergence from EU regulations. That, by definition, would happen without UK legislation being passed, yet it, too, could have implications for the need for border checks. Might we end up with de facto ‘dynamic alignment’, at least for goods, through the back door and, if so, why not gain the greater advantages of doing so by de jure dynamic alignment? Might we even end up with something not so far from the ‘common rule book’ for goods and agrifood envisaged by Theresa May’s ill-fated Chequers Proposal?
In all of this, it bears saying that, apart from those technical changes to the Windsor Framework being agreed with the EU through the JCWA, the legal changes envisaged are solely changes to UK law. Some of these, as noted above, simply make explicit what is already in the Windsor Framework. This is utterly pointless, since the UK is already bound to these by its agreement with the EU.
Pointless in a different way (in that neither is an existing treaty obligation) are the commitments to legislate for the government’s existing policy of making ‘Not For Sale in the EU’ labelling mandatory across the UK, and to ‘enshrine’ in an Act of Parliament that no government will be permitted to agree a new Protocol with an adverse effect on Northern Ireland’s position in the UK Internal Market. But such legislation is effectively meaningless, given that no parliament can bind its successor. So, as with much – but not quite all – of this ‘Safeguarding the Union’ deal announcement, there is a great deal of fluff and rather less to it than meets the eye.
If that gets the Assembly up-and-running again, then all to the good. But there is much in it which remains unclear, practically and politically. Four years since leaving the EU, and over seven years since deciding to do so, the question of what Brexit means for Northern Ireland can still not be said to have a settled answer.
Utterly defective goods
It’s said you can fool all of the people some of the time, and some of the people all of the time. Brexit never fooled all of the people, and a poll this week found that only 13% of people think that Brexit has been more of a success than a failure. Even so, other polling shows that 33% still think Brexit was the right thing to do, the discrepancy presumably being explained by yet another recent poll showing that 26% think it was the right thing to do but that the government has handled it badly.
Given that a hardcore will no doubt always support Brexit, it’s that latter group, along with the many ‘don’t knows’ in all of these surveys, who are probably the key to where public opinion eventually settles. If and when these groups swing to the view that Brexit has not only failed but was never going to succeed the demand for a refund will grow, as will the demand for those who sold the public this mug’s eyeful to be held to account.
*For more detailed and, no doubt, better-informed analysis (though I don’t think it is incompatible with mine), see Professor Colin Murray’s post on the EU Law Analysis Blog.
It was my pride and joy until I showed it to my brother-in-law, a marketing manager, who took one look at it, laughed, and said “that’s what we call a mug’s eyeful”. I had never heard the expression, but he explained it meant something which was made to look impressive with all sorts of superficial features but, not only did they have no real function, they disguised the underlying shoddiness of the product itself. And, indeed, he was right. The only control that served any purpose was the volume knob, and that soon broke, although not as soon as the cassette player began to mangle tapes, the aerial snapped, and the carrying handle fell off.
To anyone with any understanding of what it meant, it was obvious from the outset that Brexit was a mug’s eyeful. All the things which it was promised would follow from ‘taking back control’ were as illusory as the supposedly sophisticated controls on my pitiful boombox. Meanwhile, all the technical-sounding explanations, from the UK’s trade deficit guaranteeing a great deal to semi-digested factoids about, for example, GATT Article XXIV, that were littered throughout the Brexit prospectus were as meaningless and misleading as the pathetic fake graphs on its stupid plastic case.
Damaged goods
It is now four years since the UK actually left the EU, and, despite the government producing a predictably misleading though highly glossy anniversary brochure extolling ‘Britain’s Brexit success’, it is obvious to all but the most dull-witted or obtuse of Brexiters that it has been a failure. Nigel Farage said as much months ago. And just this week, Ben Habib – the creepy Brexit Party ex-MEP now standing for Reform in the by-election caused by creepy Brexiter Tory Peter Bone’s scandal-ridden demise – tweeted that those who voted for Brexit had “got nothing”. But of course, since they were the ones who sold this mug’s eyeful to a gullible public, they ascribe that failure to it not having been done properly. Thus Daniel Hannan, rather than apologise for his magniloquent visions of a post-Brexit utopia, discussed in last week’s post, can now only offer a threnody (£) for what might have been, but for “the Blob”, illustrated by a peculiar, and somewhat inaccurate, discussion of tariffs on Moroccan tomatoes.
And where once Brexiters petitioned for January 31 to be celebrated annually as ‘National Independence Day’, the best Roger Bootle, a one-time member of the ‘Economists for Brexit’ group, could come up with (£) was that it has not “brought the disaster that some other economists envisaged”. Underwhelming as that claim is, it was only achieved by the now-standard tricks of referring to parts of one of the pre-Brexit Treasury forecasts, whilst also dismissing as “elaborate guesswork” the various post-Brexit estimates of its costs.
Perhaps the nearest thing to an admission of their folly came in an article on the Institute of Economic Affairs (IEA) website, suggesting that “in retrospect, the libertarian argument supporting Brexit appears to have been fundamentally flawed in its understanding of the European Union’s nature and functions”. It’s the closest I’ve seen to a recognition that it’s not just that Brexit hasn’t led to the UK becoming ‘Singapore-on-Thames’, but that it was never likely to – something rarely acknowledged by either the libertarian Brexiters who wanted that outcome or, for that matter, by those anti-Brexiters who feared it was ‘the real agenda’ behind Brexit. It is also an interesting piece in revealing what to others is obvious, given their anti-state ideology, which is that libertarians never had any interest in the UK state ‘regaining sovereignty’, even though many of them opportunistically parroted that line.
Meanwhile, back in the real world, evidence of the damage of Brexit mounts up at an alarming, and possibly accelerating, rate. Recent examples are chronicled by Anthony Robinson for Yorkshire Bylines and Edwin Hayward in the New European, and I won’t try to cover them all here. But it is fitting that, around the time of this anniversary, the three biggest of them relate to very central parts of Brexit.
Trade in British and Canadian goods
The first is the stalling of the UK-Canada trade talks. This is important both in itself and for wider, partly symbolic, reasons. One of the things which I, and many other commentators, got wrong in the early days of the Brexit process was to think that it would prove very difficult, and perhaps impossible, for the UK to ‘roll over’ the Free Trade Agreements (FTAs) made between the EU and various third countries, and especially do so on the same terms, and by the end of the transition period. In fact, this was largely achieved, usually maintaining similar terms and occasionally, as in the case of Japan, slightly improving them (although to little, if any, practical benefit according to the UK Trade Policy Observatory).
As regards Canada, a continuity agreement was reached in November 2020, but certain parts of it contained temporary provisions, the permanence of which formed part of negotiations for a new trade agreement to replace the continuity agreement, and it is these negotiations which have now broken down. This does not put an end to the continuity agreement in its entirety, although it was originally intended only to be an interim agreement, but it does mean that those parts which were temporary will lapse or have done so. The most high-profile example of the temporary provisions related to the quota for tariff-free exports of British cheese to Canada, which expired at the end of 2023, and to rules of origin for tariff application in the automotive sector, as well as, in rather more complicated ways, trade in beef and pork.
Along the lines that I suggested in my previous post, it is necessary to be careful not to treat this simply as a Brexit bad news story. After all, the main criticism of the new trade deals the UK has done with Australia and New Zealand was that, in its desire to demonstrate its ‘post-Brexit freedom’ the government had simply accepted any terms they were offered, regardless of their effects on, especially, British farmers. So this breakdown of talks with Canada, which was initiated by the UK, can be read as a sign of a less dogma-driven approach and, certainly, has been welcomed as the “right decision” by the National Farmers Union mainly because the alternative would have been to lower UK food standards, especially as regards hormones in beef, in exchange for tariff-free access for cheese.
Nevertheless, as the British Chambers of Commerce emphasised, it is a blow for British cheese exporters and also for car-makers, and a blow which is, specifically, a cost of Brexit since it was the continuity agreement which made temporary what, under the EU-Canada agreement, would have been permanent had Britain stayed in the EU. This may only be a small blow to the Brexiter claim that they would be able to rollover trade deals, but it is a much bigger blow to their proposition that, outside the EU, the UK could negotiate deals which fitted its specific interests rather than for those interests to be subordinated to, and diluted by, those of the EU and its members.
This matters, because the central plank of the Brexiters’ trade case is the freedom to have an independent trade policy, and it’s pretty much the only argument they have for not being in a customs union with the EU. The benefits of that freedom are never remotely going to outweigh the costs of leaving the EU single market – and it is a mystery why so many ‘free-trader’ Brexiters, like Bootle, continue to insist that those costs are very low, whilst also insisting that the benefits of trade deals could be high – but it’s not even clear that they outweigh the costs of having left the customs union.
It also matters in particular ways because the country in question is, specifically, Canada. On the one hand, that is significant symbolically given the idea held by ‘Ladybird Brexiters’ like Hannan, that Commonwealth countries and, especially, the ‘Dominions’, would fall over themselves to ‘renew old friendships’. That, and the associated ‘CANZUK’ fantasy, was based on a mixture of imperial nostalgia, ignorance about the modern nature of those countries, and quite breath-taking naivety about the tough realities of trade negotiations. On the other hand, it is significant practically, at least potentially, because Canada is a member of CPTPP and has yet to ratify Britain’s membership, something the Brexiters have made the centrepiece of their claims for the benefits of Brexit. As things stand, the Canadian government has said that this latest development will not affect CPTPP accession, but it is quite possible that it will revive opposition from Canadian farming lobbies to ratification.
Import controls on EU goods
The second big story is the next stage of the introduction of import controls on certain goods coming from the EU. It isn’t quite accurate to say, as some media reports do, that it is the beginning of such controls, because controls on some high-risk imports did start when the transition period ended. However, these latest controls on medium-risk goods, mainly cut flowers, fish, meat and dairy products, have been much delayed.
I discussed last week, as I have done in the past, what the likely consequences of their introduction will be, but one thing left hanging was what last week’s announcement about fruit and vegetables meant. My understanding now is that it moved most such produce into the medium-risk category, thus including it in the new paperwork requirements that started this week and the new inspection regime which will come into force at the end of April, but temporarily kept it as low-risk until the end of October, at which point fruit and vegetables, too, will require paperwork and be liable for inspection.
All of this will necessarily add to the costs of trade, and comes against a background in which already, according to a survey reported in the Financial Times this week (£), three-quarters of British firms who trade with the EU say that their sales and profitability have declined as a result of Brexit. The new controls will add to this burden, and, for consumers, adversely impact prices and choice, and probably shelf-life.
I also discussed last week why it is that import controls are necessary, despite some Brexiters still being unable to grasp this and, right on cue, up popped Jacob Rees-Mogg to squeak that introducing them is “totally stupid”, and that he had opposed doing so when Brexit Opportunities Minister (a post, be it noted, that no longer exists, and small wonder since it was the definition of a sinecure). That ignorance or dishonesty goes to the heart of why Britain was not ready to introduce the controls on time, for, astonishingly, it was not officially admitted by any government minister – Michael Gove – that they were inevitable until February 2020, after Britain had actually left the EU.
That in turn points to a deeper dishonesty. Anyone who understood the issue knew this from the moment that Theresa May explicitly confirmed that Brexit meant hard Brexit, in January 2017, and the government itself began to prepare for it from at least 2018. The reticence about telling the public was surely because, whilst there was even the thinnest chance of Brexit being abandoned, the government didn’t want to be open about what it meant.
Great Britain and Northern Ireland Internal Market goods
And finally, Northern Ireland, the hardy perennial of Brexit mess and dishonesty. That the Northern Ireland Assembly will resume sitting because the DUP have done a deal with the government is unalloyed good news. What that deal consists of and how it will play out in both practical and political terms is much less easy to assess, and no doubt I will write more about it in the future. Its detail was released by the government as a Command Paper entitled 'Safeguarding the Union' on Wednesday, parts of which need to be read in conjunction with a draft decision of the Joint Committee overseeing the Withdrawal Agreement (JCWA), released rather more quietly the evening before.
These documents are quite long and, in places, highly technical but my initial understanding* is that the changes are substantive in offering easements to border processes, especially on movements from Great Britain (GB) to Northern Ireland (NI). In very brief, the most important of these is to designate most goods (though not including most of those designated for further processing in Northern Ireland) moving between GB and NI as ‘low risk’, therefore exempting them from customs paperwork and removing routine checks if they come from companies signed up to the ‘Trusted Trader’ register and if they are destined never to leave NI.
Such goods will now be able to use the ‘green lane’ which, symbolically, but in a context where symbols greatly matter, is going to be renamed the UK Internal Market line. There is also some relaxation of processes and checks relating to products, including agrifood products, imported from the rest of the world so long as they are not at risk of entering the EU, and this also means that Northern Ireland will have the benefits (such as they are) of the UK’s independent trade policy.
However, the fundamental architecture of the Northern Ireland Protocol and the Windsor Framework remains unchanged. This is important, since it explains why there is very little indication, at least so far, that the EU (or, especially important, Ireland) are or will be unhappy with what has been agreed, though there was just a hint yesterday that that could change. Indeed, much of the Command Paper seems to be a restatement of the ways in which the Windsor Framework acts to make the Protocol more workable with, in some cases, proposals to ‘enshrine’ these in UK law by amending various pieces of legislation including the EU (Withdrawal) Act and the Internal Market Act.
Even so, aspects of the changes mentioned in the Command Paper and fleshed out by the JCWA document do amount to legal changes in the Windsor Framework, at least according to Sir Jonathan Jones (the former head of the Government Legal Service who resigned over the potentially illegal clauses of the Internal Market Bill) who surely speaks with authority. Actually, that in itself is an indication that what is under way is occurring within the Windsor Framework and in conjunction with the EU, and the Command Paper is explicit that some of its proposals will need further JCWA agreement. In other words, we do not seem to be back to the days of the Internal Market Bill, or for that matter the Northern Ireland Protocol Bill, where there had been proposals for the UK unilaterally to change the terms of what had been agreed with the EU.
At the same time, that de facto legal changes have been made to the Windsor Framework could be regarded as a victory for the DUP, who say it confounds critics who had said this was impossible, but such changes do not affect the fundamental fact of there still being an Irish Sea border, claims by DUP leader Sir Jeffrey Donaldson notwithstanding. Nor do they change the fact of Northern Ireland still being in the EU single market for goods. This means that there continues to be some opposition to the deal from within the DUP, and even more from other unionist parties, most notably Traditional Unionist Voice. Perhaps all these changes amount to is a ladder for the DUP to climb down, knowing full well how limited they are. Or perhaps the DUP have been gulled into believing them to be more significant than they are. Nor are these two possibilities mutually exclusive, since it may suit the DUP to accept them now but, in the future, to declare that they were deceived. In this and others senses, the long-run impact on Northern Irish politics remains unclear.
Regulation of goods
There is also a UK political dimension, since these changes entail the use of Statutory Instruments and some legislation, the crucial pieces of which were passed yesterday. This haste was presumably in order to get a swift resumption of the NI Assembly, but that may, as has happened before in the Brexit process, lead to very technical things having been agreed without anyone quite knowing what they mean in practice. There is a particular question, which is already exercising Brexiters (£), about whether the implication of it all may be to make future UK divergence from EU rules harder. This is because part of the deal means that parliament will have to be told if any future UK legislation has “significant adverse implications for Northern Ireland's place in the UK internal market”, as regulatory divergence related to goods surely would.
The government has denied that this prevents future divergence, and to the letter of the law I suppose that is true, since such legislation could still be passed regardless of what it means for Northern Ireland’s place in the UK internal market. But were that to happen, it would (or could) immediately re-open the issue of what checks are needed for the Sea border. Equally, it’s clear that the DUP believe the deal ensures that there will be no dynamic alignment of EU law and Northern Ireland law, yet it is hard to see how that can be true (as regards goods) under the basic terms of the Protocol, so again it suggests that what it will mean in practice is the UK as a whole staying aligned with such law so that unionists can depict the situation as simply one of Northern Ireland being the same as the rest of the UK whilst, effectively, still following EU law.
To add to the confusion, what I have not seen discussed anywhere yet is what all this means for any passive divergence from EU regulations. That, by definition, would happen without UK legislation being passed, yet it, too, could have implications for the need for border checks. Might we end up with de facto ‘dynamic alignment’, at least for goods, through the back door and, if so, why not gain the greater advantages of doing so by de jure dynamic alignment? Might we even end up with something not so far from the ‘common rule book’ for goods and agrifood envisaged by Theresa May’s ill-fated Chequers Proposal?
In all of this, it bears saying that, apart from those technical changes to the Windsor Framework being agreed with the EU through the JCWA, the legal changes envisaged are solely changes to UK law. Some of these, as noted above, simply make explicit what is already in the Windsor Framework. This is utterly pointless, since the UK is already bound to these by its agreement with the EU.
Pointless in a different way (in that neither is an existing treaty obligation) are the commitments to legislate for the government’s existing policy of making ‘Not For Sale in the EU’ labelling mandatory across the UK, and to ‘enshrine’ in an Act of Parliament that no government will be permitted to agree a new Protocol with an adverse effect on Northern Ireland’s position in the UK Internal Market. But such legislation is effectively meaningless, given that no parliament can bind its successor. So, as with much – but not quite all – of this ‘Safeguarding the Union’ deal announcement, there is a great deal of fluff and rather less to it than meets the eye.
If that gets the Assembly up-and-running again, then all to the good. But there is much in it which remains unclear, practically and politically. Four years since leaving the EU, and over seven years since deciding to do so, the question of what Brexit means for Northern Ireland can still not be said to have a settled answer.
Utterly defective goods
It’s said you can fool all of the people some of the time, and some of the people all of the time. Brexit never fooled all of the people, and a poll this week found that only 13% of people think that Brexit has been more of a success than a failure. Even so, other polling shows that 33% still think Brexit was the right thing to do, the discrepancy presumably being explained by yet another recent poll showing that 26% think it was the right thing to do but that the government has handled it badly.
Given that a hardcore will no doubt always support Brexit, it’s that latter group, along with the many ‘don’t knows’ in all of these surveys, who are probably the key to where public opinion eventually settles. If and when these groups swing to the view that Brexit has not only failed but was never going to succeed the demand for a refund will grow, as will the demand for those who sold the public this mug’s eyeful to be held to account.
*For more detailed and, no doubt, better-informed analysis (though I don’t think it is incompatible with mine), see Professor Colin Murray’s post on the EU Law Analysis Blog.
Update (02/02/2024 at 10.40):
One aspect of the Command Paper/ JCWA changes I was aware of, but didn’t
discuss as I didn’t understand it, relates to Tariff-Rate Quotas (TRQs). This
has since been explained by trade expert Sam Lowe in his
latest Most Favoured Nation Substack. Interestingly, this somewhat
contradicts what I said (and it was not my invention, it is what the NI
Secretary Chris
Heaton-Harris said in the House of Commons) said about how the deal would
enable NI to benefit from the UK’s independent trade policy. At least as
regards TRQs, this seems not be true (see Lowe’s comments about the
UK-Australia trade deal). Perhaps this is an example of what I warned of about
how all this is being passed very quickly with MPs and others possibly not
understanding all of the implications?
Update (02/02/24 at 15.15): An update my previous update! Sam Lowe has now amended his Substack post to explain that NI will be able to use the new TRQs in FTAs such as UK-Australia. A reminder of just how complex some of this stuff is, even to the experts!
Sunday, 13 December 2020
Brexit debilitation
So yet another supposedly final deadline has come and gone, and the ludicrous ‘will they, won’t they’ theatre of the last few months continues. Ludicrous, but debilitating, too, in a host of ways.
Debilitating, certainly, for those desperately anxious to know just how much their lives and livelihoods are going to be damaged, with literally only days to go. Debilitating for those businesses and others who are expected to be prepared for changes as yet unknown or, where known, lacking in the necessary operational detail, as the head of the British Chambers of Commerce has outlined. Debilitating, too, for the reputation of the UK - already so battered by Brexit - with bellicose talk of deploying the Royal Navy to police ‘no deal’ fishing rights and the ramping up of jingoism and xenophobia in this weekend’s newspaper headlines.
If this is all supposed to be part of a ‘tough’ negotiating strategy, it is one which makes for deeply irresponsible government and which is having deeply destabilizing effects. Huge sectors of the economy don’t know what they are facing, and business leaders are reported to be in despair. We’re in the extraordinary situation of planning for a military airlift of vaccines to the UK (and, equally extraordinary, of not knowing whether there will be adequate supplies of general medicines). Already supermarkets and others are stockpiling goods, with consequent massive lorry queues. Nor should the uncertainty about non-economic issues, such as those of security co-operation, be forgotten.
Perhaps the greatest uncertainty is faced by the people of Northern Ireland. Whilst the Northern Ireland Protocol was designed as an insurance against every eventuality, including no deal, it has already come under strain. Last week, some agreements on how it would operate were reached and – whether as cause or consequence – the government agreed to remove the illegal clauses from the Internal Market Bill and other legislation. However, as a leading expert on this topic, Professor Katy Hayward of Queen’s University Belfast, explained this does not mean that Northern Ireland is ‘sorted’ and all the more so if there were to be no wider trade deal.
We don’t even know whether, if there is no deal, the UK will agree to the EU’s temporary mitigations which were announced last week. Under these, “basic” air and road connectivity will be assured for six months, subject to UK reciprocation, and there would be a one-year standstill on fisheries. If the UK didn’t agree, it would make the crisis of no deal even greater than it would otherwise be. So across the entirety of national life we are only a few working days from a completely unknown situation. Yet MPs asking questions about preparedness for no deal this week were berated by Paymaster-General Penny Mordaunt for not acting “in the interests of the country”. The very basics of democratic accountability, even of rational debate, are now deemed unpatriotic, debilitating our political culture.
The lies that bind us
As always, in the background are all the lies stretching back to 2016 about a quick and easy deal. But even without rehearsing those again it’s enough to recall how during the 2019 General Election Boris Johnson was pretending (though not quite saying) that he had already done the final Brexit deal. He covered himself verbally but the meaning of his continual slogans about ‘an oven ready deal’ that would ‘get Brexit done’ was designed to deceive and it did deceive. Now, of course, he and his apologists are pointing to the verbal tricks to deny that any such pretence occurred. We are no longer just in the territory of lies, but of lies about lies. Even now Johnson is incapable of telling the truth, with his smirking pretence that if there is no deal it will, in fact, be an ‘Australia-style’ deal.
And, as always, we are in this situation because a small but ruthlessly extremist group of politicians, journalists and ‘thinktankers’ have pushed to ever more extreme positions. The proposition just a few years ago that ‘it wouldn’t be so bad to be like Norway’ – a debatable but perfectly sane and practically deliverable proposition – has gradually morphed into one where, for the Brexit Ultras, any kind of deal with the EU would be a betrayal of a wholly absurd theocratic doctrine of sovereignty (£). It is the adherents to this doctrine to whom Johnson is in thrall if, indeed, he is not one of them himself.
It is a doctrine which makes no sense even in its own terms, because at the same time as it is deployed as an inviolable principle that may preclude any deal with the EU, it is necessarily compromised in the trade deals the government is agreeing with Japan or Canada, and in potentially embracing WTO terms for trade with the EU. On these grounds, simultaneously meaningless and hypocritical, the government is apparently still considering something which, from its own impact assessments, carries the dangers of creating “a systemic economic crisis” with food and medicine shortages, power cuts, and civil disorder.
Perhaps this won’t happen. Perhaps, as some rumours have it, a series of fudges and compromises are in the offing which will get some sort of a deal over the line – although, even if so, there would seem to barely be enough time to ratify such a deal in time for the end of the year. But why are we even in this situation of debilitating uncertainty?
Why are we in this situation?
It is important to be clear that the reasons the Brexiters are giving for why a deal has not been made and is proving so difficult to make are also lies. Their key claim is that the EU has made unreasonable and unprecedented demands upon the UK, many sprung on the UK at the last moment. Even taken at face value this is an odd claim. The Brexiters have spent decades saying that the EU is akin to Nazi Germany or the Soviet Union, totalitarian and dictatorial, and a ‘protectionist racket’. Yet they seem to have predicated Brexit on the starry-eyed belief that it would be cuddly and nice, and a pushover in the negotiations.
But, of course, the claim shouldn’t be taken at face value. In one way, it is true by definition that the terms of a Brexit deal would be unprecedented – never before has such an exit occurred – although the extent to which the EU is making unprecedented demands compared with those on other third countries is over-stated. The situation of the EU making a deal with a geographically close and economically completely intertwined third country is similarly unique. The UK idea, since Johnson came to power, of the negotiation being one of ‘sovereign equals’ with there being some set of rights of what is due to the UK as a third country is at best naïve and at worst disingenuous. Indeed, as the Spanish Foreign Minister acutely pointed out today, trade negotiations are a vehicle for managing interdependence between sovereign nations; using them simply to assert independence is to doom them to failure.
Equally disingenuous is the idea that the UK is only asking for the same as Canada (it has been asking for more, not improperly but it is dishonest to say otherwise). Indeed repeated claims from Brexiters that their plan was for a ‘Canada +’ or even ‘Canada +++’ or ‘Super-Canada’ deal give the lie to this idea. And also disingenuous is the idea that the long-standing EU offer of a ‘Canada-style’ deal meant ‘exactly the same as CETA’, as opposed to ‘in the category of free trade agreements’ (rather than single market membership). Let’s knock on the head once and for all the myth that Michel Barnier (with his staircase) and Donald Tusk promised a cut-and-paste of CETA. They didn’t – they said that UK red lines left a free trade agreement, of the type but not of the same content as CETA, which would be definitionally worse that single market membership. Moreover, at the time, Brexiters greeted this not as a promise but as a ‘threat’ of punishment.
As regards the issues that have proved to be the main barriers to doing a deal, the unique circumstances of Brexit were always going to make disentangling fishing arrangements complex, even leaving aside anything else, just as they had been prior to EEC membership. That the EU would seek Level Playing Field commitments as a condition of a free trade deal was made clear as early as April 2017, and was in the Political Declaration that Johnson signed – and promptly dismissed as irrelevant. And there was always going to need to be a governance mechanism – if the EU has become more insistent in recent weeks that this be tightly specified that is because the UK has already shown it is willing to break both what had been signed up to legally in the Withdrawal Agreement and informally in the Political Declaration, thus destroying all trust.
It’s also worth noting something about these three sticking points. A key and utterly flawed claim of the Brexiters has been that a trade deal would be easy because the UK was starting from a point of total convergence with the EU, and it is agreeing convergence which makes making free trade deals so difficult and slow. This was the basis of, for example, Liam Fox’s now notorious claim that it should be “one of the easiest deals in history’. It was always nonsense (as pointed out in my post of July 2017) because the aim of this trade deal, uniquely, is divergence, and so it was the management of divergence which was bound to be problematic. And so it has proved – for all three of the potentially deal-breaking issues are about the terms of divergence.
Beneath all of this is a more basic issue. Questions of whether or not the EU is being ‘reasonable’ in its demands are entirely beside the point. Trade negotiations aren’t ‘nice’. They involve the parties pursuing what they see as their self-interest. The ‘what they see as’ bit is crucial – Brexiters have long sought to define for the EU what its self-interest ‘should be’, with their claim about the significance of the UK trade deficit being central. They were wrong, as they were told they would be. It doesn’t even matter if the EU has miscalculated (though there are good arguments against that being so) because the brutal reality is that this is its calculation.
And not only were the Brexiters wrong about the EU’s interests, so too are they wrong about the UK’s. For, as we are seeing, they have led us to paying a terrible price – exactly how high will depend on whether there is a deal - for the purely imaginary benefit of sovereignty. And, despite what is now claimed, that benefit was never presented simply as a matter of principle to be achieved at any cost, but as something which would also bring economic benefits, with the £350 million a week for the NHS being the headline example. They were wrong about that, too.
In short, we haven’t ended up in the present mess by accident. It has happened because when they were not lying the Brexiters were simply ignorant. They either fooled themselves or were fooling others. Every single step of the way, every single claim they have made has been discredited. And, of course, there is much more in the way of consequences of that still to come.
So what now?
In the immediate term, it’s impossible to know what will happen. The swirl of rumours, counter-rumours, predictions, counter-predictions, and rune-reading that has characterised the last few months is intensifying and will continue to do so. All of the rumours can be made to equally well fit a narrative of Johnson proclaiming a last-minute triumph, despite EU perfidy, as they can one of a last-minute failure, because of EU perfidy.
The stories after the Johnson-von der Leyen dinner last week seemed to point firmly to there being no deal (£). Today’s joint statement is being widely interpreted to suggest a deal is now more likely, perhaps the more so because it was a joint statement. Almost everyone thought that this weekend there would be a definitive announcement. There wasn’t. Perhaps it will come in the next few days, or perhaps things really will drag on until the very end of the month – it may be telling that today’s statement did not mention any new deadline. Perhaps even at this late moment some kind of fudged deal-but-not-a-deal will be created with implementation periods that mimic an extended transition. Perhaps there will be a very short no deal interim.
It’s easy to make out a convincing case for why both deal and no deal are likely because it is the same old issue as there’s been from the outset: the rationality of reducing the economic damage points in one direction, the rationality of reducing the political damage of offending the Brexit Ultras points in the other. The only thing that can be said with certainty is that nothing can be said with certainty (apart from this), and those who do so should be taken with a pinch of salt.
In the meantime, it serves little analytical purpose, as well as being psychologically debilitating, to try to follow each twist and turn at the moment. It may very well be that, as before his decision to campaign for Brexit, Johnson is even now drawing up two announcements, one for deal and one for no deal. There’s not much any of us can do except, perhaps, to refuse to play out bit parts in this theatre of horror. Better to simply switch off for a while and focus on Christmas.
I am going to try to take my own advice, so this will (probably!) be the last post until after Christmas.
Debilitating, certainly, for those desperately anxious to know just how much their lives and livelihoods are going to be damaged, with literally only days to go. Debilitating for those businesses and others who are expected to be prepared for changes as yet unknown or, where known, lacking in the necessary operational detail, as the head of the British Chambers of Commerce has outlined. Debilitating, too, for the reputation of the UK - already so battered by Brexit - with bellicose talk of deploying the Royal Navy to police ‘no deal’ fishing rights and the ramping up of jingoism and xenophobia in this weekend’s newspaper headlines.
If this is all supposed to be part of a ‘tough’ negotiating strategy, it is one which makes for deeply irresponsible government and which is having deeply destabilizing effects. Huge sectors of the economy don’t know what they are facing, and business leaders are reported to be in despair. We’re in the extraordinary situation of planning for a military airlift of vaccines to the UK (and, equally extraordinary, of not knowing whether there will be adequate supplies of general medicines). Already supermarkets and others are stockpiling goods, with consequent massive lorry queues. Nor should the uncertainty about non-economic issues, such as those of security co-operation, be forgotten.
Perhaps the greatest uncertainty is faced by the people of Northern Ireland. Whilst the Northern Ireland Protocol was designed as an insurance against every eventuality, including no deal, it has already come under strain. Last week, some agreements on how it would operate were reached and – whether as cause or consequence – the government agreed to remove the illegal clauses from the Internal Market Bill and other legislation. However, as a leading expert on this topic, Professor Katy Hayward of Queen’s University Belfast, explained this does not mean that Northern Ireland is ‘sorted’ and all the more so if there were to be no wider trade deal.
We don’t even know whether, if there is no deal, the UK will agree to the EU’s temporary mitigations which were announced last week. Under these, “basic” air and road connectivity will be assured for six months, subject to UK reciprocation, and there would be a one-year standstill on fisheries. If the UK didn’t agree, it would make the crisis of no deal even greater than it would otherwise be. So across the entirety of national life we are only a few working days from a completely unknown situation. Yet MPs asking questions about preparedness for no deal this week were berated by Paymaster-General Penny Mordaunt for not acting “in the interests of the country”. The very basics of democratic accountability, even of rational debate, are now deemed unpatriotic, debilitating our political culture.
The lies that bind us
As always, in the background are all the lies stretching back to 2016 about a quick and easy deal. But even without rehearsing those again it’s enough to recall how during the 2019 General Election Boris Johnson was pretending (though not quite saying) that he had already done the final Brexit deal. He covered himself verbally but the meaning of his continual slogans about ‘an oven ready deal’ that would ‘get Brexit done’ was designed to deceive and it did deceive. Now, of course, he and his apologists are pointing to the verbal tricks to deny that any such pretence occurred. We are no longer just in the territory of lies, but of lies about lies. Even now Johnson is incapable of telling the truth, with his smirking pretence that if there is no deal it will, in fact, be an ‘Australia-style’ deal.
And, as always, we are in this situation because a small but ruthlessly extremist group of politicians, journalists and ‘thinktankers’ have pushed to ever more extreme positions. The proposition just a few years ago that ‘it wouldn’t be so bad to be like Norway’ – a debatable but perfectly sane and practically deliverable proposition – has gradually morphed into one where, for the Brexit Ultras, any kind of deal with the EU would be a betrayal of a wholly absurd theocratic doctrine of sovereignty (£). It is the adherents to this doctrine to whom Johnson is in thrall if, indeed, he is not one of them himself.
It is a doctrine which makes no sense even in its own terms, because at the same time as it is deployed as an inviolable principle that may preclude any deal with the EU, it is necessarily compromised in the trade deals the government is agreeing with Japan or Canada, and in potentially embracing WTO terms for trade with the EU. On these grounds, simultaneously meaningless and hypocritical, the government is apparently still considering something which, from its own impact assessments, carries the dangers of creating “a systemic economic crisis” with food and medicine shortages, power cuts, and civil disorder.
Perhaps this won’t happen. Perhaps, as some rumours have it, a series of fudges and compromises are in the offing which will get some sort of a deal over the line – although, even if so, there would seem to barely be enough time to ratify such a deal in time for the end of the year. But why are we even in this situation of debilitating uncertainty?
Why are we in this situation?
It is important to be clear that the reasons the Brexiters are giving for why a deal has not been made and is proving so difficult to make are also lies. Their key claim is that the EU has made unreasonable and unprecedented demands upon the UK, many sprung on the UK at the last moment. Even taken at face value this is an odd claim. The Brexiters have spent decades saying that the EU is akin to Nazi Germany or the Soviet Union, totalitarian and dictatorial, and a ‘protectionist racket’. Yet they seem to have predicated Brexit on the starry-eyed belief that it would be cuddly and nice, and a pushover in the negotiations.
But, of course, the claim shouldn’t be taken at face value. In one way, it is true by definition that the terms of a Brexit deal would be unprecedented – never before has such an exit occurred – although the extent to which the EU is making unprecedented demands compared with those on other third countries is over-stated. The situation of the EU making a deal with a geographically close and economically completely intertwined third country is similarly unique. The UK idea, since Johnson came to power, of the negotiation being one of ‘sovereign equals’ with there being some set of rights of what is due to the UK as a third country is at best naïve and at worst disingenuous. Indeed, as the Spanish Foreign Minister acutely pointed out today, trade negotiations are a vehicle for managing interdependence between sovereign nations; using them simply to assert independence is to doom them to failure.
Equally disingenuous is the idea that the UK is only asking for the same as Canada (it has been asking for more, not improperly but it is dishonest to say otherwise). Indeed repeated claims from Brexiters that their plan was for a ‘Canada +’ or even ‘Canada +++’ or ‘Super-Canada’ deal give the lie to this idea. And also disingenuous is the idea that the long-standing EU offer of a ‘Canada-style’ deal meant ‘exactly the same as CETA’, as opposed to ‘in the category of free trade agreements’ (rather than single market membership). Let’s knock on the head once and for all the myth that Michel Barnier (with his staircase) and Donald Tusk promised a cut-and-paste of CETA. They didn’t – they said that UK red lines left a free trade agreement, of the type but not of the same content as CETA, which would be definitionally worse that single market membership. Moreover, at the time, Brexiters greeted this not as a promise but as a ‘threat’ of punishment.
As regards the issues that have proved to be the main barriers to doing a deal, the unique circumstances of Brexit were always going to make disentangling fishing arrangements complex, even leaving aside anything else, just as they had been prior to EEC membership. That the EU would seek Level Playing Field commitments as a condition of a free trade deal was made clear as early as April 2017, and was in the Political Declaration that Johnson signed – and promptly dismissed as irrelevant. And there was always going to need to be a governance mechanism – if the EU has become more insistent in recent weeks that this be tightly specified that is because the UK has already shown it is willing to break both what had been signed up to legally in the Withdrawal Agreement and informally in the Political Declaration, thus destroying all trust.
It’s also worth noting something about these three sticking points. A key and utterly flawed claim of the Brexiters has been that a trade deal would be easy because the UK was starting from a point of total convergence with the EU, and it is agreeing convergence which makes making free trade deals so difficult and slow. This was the basis of, for example, Liam Fox’s now notorious claim that it should be “one of the easiest deals in history’. It was always nonsense (as pointed out in my post of July 2017) because the aim of this trade deal, uniquely, is divergence, and so it was the management of divergence which was bound to be problematic. And so it has proved – for all three of the potentially deal-breaking issues are about the terms of divergence.
Beneath all of this is a more basic issue. Questions of whether or not the EU is being ‘reasonable’ in its demands are entirely beside the point. Trade negotiations aren’t ‘nice’. They involve the parties pursuing what they see as their self-interest. The ‘what they see as’ bit is crucial – Brexiters have long sought to define for the EU what its self-interest ‘should be’, with their claim about the significance of the UK trade deficit being central. They were wrong, as they were told they would be. It doesn’t even matter if the EU has miscalculated (though there are good arguments against that being so) because the brutal reality is that this is its calculation.
And not only were the Brexiters wrong about the EU’s interests, so too are they wrong about the UK’s. For, as we are seeing, they have led us to paying a terrible price – exactly how high will depend on whether there is a deal - for the purely imaginary benefit of sovereignty. And, despite what is now claimed, that benefit was never presented simply as a matter of principle to be achieved at any cost, but as something which would also bring economic benefits, with the £350 million a week for the NHS being the headline example. They were wrong about that, too.
In short, we haven’t ended up in the present mess by accident. It has happened because when they were not lying the Brexiters were simply ignorant. They either fooled themselves or were fooling others. Every single step of the way, every single claim they have made has been discredited. And, of course, there is much more in the way of consequences of that still to come.
So what now?
In the immediate term, it’s impossible to know what will happen. The swirl of rumours, counter-rumours, predictions, counter-predictions, and rune-reading that has characterised the last few months is intensifying and will continue to do so. All of the rumours can be made to equally well fit a narrative of Johnson proclaiming a last-minute triumph, despite EU perfidy, as they can one of a last-minute failure, because of EU perfidy.
The stories after the Johnson-von der Leyen dinner last week seemed to point firmly to there being no deal (£). Today’s joint statement is being widely interpreted to suggest a deal is now more likely, perhaps the more so because it was a joint statement. Almost everyone thought that this weekend there would be a definitive announcement. There wasn’t. Perhaps it will come in the next few days, or perhaps things really will drag on until the very end of the month – it may be telling that today’s statement did not mention any new deadline. Perhaps even at this late moment some kind of fudged deal-but-not-a-deal will be created with implementation periods that mimic an extended transition. Perhaps there will be a very short no deal interim.
It’s easy to make out a convincing case for why both deal and no deal are likely because it is the same old issue as there’s been from the outset: the rationality of reducing the economic damage points in one direction, the rationality of reducing the political damage of offending the Brexit Ultras points in the other. The only thing that can be said with certainty is that nothing can be said with certainty (apart from this), and those who do so should be taken with a pinch of salt.
In the meantime, it serves little analytical purpose, as well as being psychologically debilitating, to try to follow each twist and turn at the moment. It may very well be that, as before his decision to campaign for Brexit, Johnson is even now drawing up two announcements, one for deal and one for no deal. There’s not much any of us can do except, perhaps, to refuse to play out bit parts in this theatre of horror. Better to simply switch off for a while and focus on Christmas.
I am going to try to take my own advice, so this will (probably!) be the last post until after Christmas.
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