Count to one hundred

It’s indicative of the Trumpian world, as well as the hyper-frenetic nature of the contemporary media, that the ‘Greenland crisis’ which dominated the news when I wrote my previous post has all but disappeared from view. Its replacement this week by the Epstein files scandal is, in one very particular way, an illustration of how the two are linked in that the disclosures, which have convulsed British politics, only arose because of the persistent questions in the US about the Trump-Epstein relationship. That freneticism is disorientating, intentionally so in Trump's case, so it's worth slowing down and 'counting to one hundred' rather than responding to each twist and turn. In any case, a fortnightly blog imposes that discipline. 

In fact, even before the latest Epstein story broke the Greenland crisis had become old news and the standard analysis of this seems to be that ‘Trump always chickens out’ (TACO) or, alternatively, that, like a market stall haggler, Trump starts with maximalist demands, always intending to settle for less. I’m not so sure. As Guardian columnist Jonathan Freedland points out, Trump’s more common pattern is to briefly retreat then return for more. Thus on Greenland, within a few days of his apparent climbdown, Trump’s envoy was once again demanding (£) “total, unfettered access” to the territory.

The truth is, we don’t know what Trump was offered by NATO’s Mark Rutte that led to the sudden withdrawal of the ‘Greenland tariffs’ threat, and we don’t know what will happen next. And that is just one example of the bigger truth about Trump: no one knows what he will do next across the board. Another example is his sudden turnaround yesterday on his previous turnaround on the ‘Chagos deal’, which, incidentally, leaves those like Kemi Badenoch and Nigel Farage who used Trump’s previous statement as a stick with which to beat the government looking rather stupid (it’s also a good example of why ‘counting to a hundred’ in the current political climate is sensible).

It’s this unpredictability, as much as anything else, which presents the UK, like every other country, with so many dilemmas. It is also what is gradually draining away US power and prestige. Far from ’making America great again’ Trump is actually diminishing his country, burning away its ‘soft power’ and, increasingly, making it an undesirable trade and defence partner (£).

The Carney Doctrine in practice

So it’s not just that the Greenland crisis, when the US made both military and economic threats against its closest allies, won’t be forgotten. It’s that many countries, including the UK, are following the ‘Carney doctrine’ discussed in my previous post, finding new ways to navigate around the malevolent and unpredictable superpower that America has become. Examples from the last fortnight include Keir Starmer’s visit to China, to promote economic ties and to smooth diplomatic relations (just as have Mark Carney and President Orsi of Uruguay), followed by a slightly less high-profile stop in Japan to discuss economic and defence links. Another example is the completion of an EU-India Free Trade Agreement, which also included significant steps towards security cooperation [1].

Obviously, these events were in train before the Greenland Crisis and before Carney’s Davos speech. That speech was merely a sharp articulation of an existing trend, and the Carney Doctrine has now become a useful way of framing the continuation of that trend. The point is that these, and similar, events have to be understood in relation to Trump. Thus Reuters reported Starmer’s China visit as the latest example of countries “seeking an economic and geopolitical hedge against Trump's unpredictability” whilst Kerry Brown, Professor of Chinese Studies at King’s College London, argued that it “reflects the realities of a new global order that has upended traditional alliances”.

Similarly, the EU-India deal, which has been long-delayed, was undoubtedly accelerated by Trump’s erratic and punitive tariff policies, and was described in very Carney-like terms by trade expert Amitendu Palit, of the National University of Singapore, as being “a strong signal for global middle powers committed to rules-based trade”. Another analyst spelled out that “this is not simply a trade deal. It is an act of geopolitical statecraft; one that reveals how major democratic economies are adapting to a more fractured and volatile global order.”

The rapprochement between the UK and China is not without risks. Just as Carney’s visit to Beijing attracted Trump’s ire, so too, though in slightly milder terms, did Starmer’s. Meanwhile, domestically, the potential security problems as well as the human rights implications, of closer relations with China attracted criticism. But this just underlines that there are no good options, and that, whatever else China may be, it, unlike the US, is at least relatively predictable and if Trump doesn’t like that then he has only himself to blame. This also means that, for the foreseeable future, there is going to be no easy way of describing the UK’s international relations posture in the way that, at least to some extent, was possible during the Cold War. It’s going to be a hodge-podge of uncomfortable accommodations.

Brexit: a hodge-podge of its own

Of course, those accommodations are made all the more uncomfortable by Brexit. Indeed, it shouldn’t be forgotten that the appointment of Peter Mandelson as British Ambassador to the US, and the very profound discomfort it has caused the government this week, arose at least in part because, as the Financial Times trade commentator Alan Beattie has pointed out, it was believed that he would be able to deliver the supposed prize of a post-Brexit trade deal with the US (or non-deal, as it has so far largely turned out to be). It also seems pretty obvious that he was appointed because of rather than despite his friendship with Epstein, in the sense that it was such connections that made Mandelson the kind of credible Trump-whisperer that post-Brexit Britain needed: all three men swam in the same fetid cesspool of wealth and depravity.

That aside, the more general point is that, given the situation Trump has created, what the UK most needs is a close, predictable relationship with a major geo-political entity with which it is closely aligned in terms of trade, interests, and values. Thus it is more obvious than ever that Brexit was supremely stupid. EU membership would not remove the challenges of navigating relations with the US and China, but it would provide a stable anchor-point for that navigation (I’m aware that this metaphor is mangled). Now, given that Brexit has happened, the obvious logic of the global situation for the UK is to move closer to the EU.

In fact, what we see in that respect is also a hodge-podge. Last week, Starmer stated that the UK should look to “go further” at the next summit with the EU. This is to be held in May, with what was in effect a pre-meeting having taken place this week, resulting in a rather bland joint statement. One implication of that statement, at least on my reading (the wording is slightly ambiguous), is that the once eagerly anticipated 2026 review of the Trade and Cooperation Agreement is now redundant, with everything folded into the ongoing process of the summits. Yet, despite the talk of ‘going further’, the reality is that almost none of the things agreed in principle at last year’s summit have been finalised, and this week’s statement gives only vague aspirations for when they will be [2]. And one of last year’s proposals, UK participation in the EU SAFE fund for defence procurement, has actually already failed, although, partly because of the Greenland crisis, it seems that there could be a new attempt at an agreement.

There is also a very mixed picture in the regulatory sphere. The latest iteration of the invaluable UKICE regulatory divergence tracker shows a variety of passive and active divergences between the UK and the EU, alongside some cases of active alignment. In his analysis of the overall position, Joël Reland, the compiler of the tracker, argues that there has been greater divergence under the Labour government than under its Conservative predecessor. This is because, whilst broadly pursuing ‘alignment’ in relation to trade in goods, there has been targeted divergence in relation to some (not all) services, especially financial services, and technology regulation. In this respect, Reland suggests, the Labour approach is more precise than that of the last government in identifying priorities and, in a certain sense, more effective in actually making concrete changes within those priority areas.

There’s a lot to unpack in that analysis. A preliminary point is just a reiteration of what I’ve already said: the decisions the UK is taking do not point in a single direction. Secondly, as Reland points out, the actual economic impact of these regulatory divergences is likely to be very slim. In other words, they show one of the many basic flaws in the entire Brexit prospectus: it is simply wrong to claim that freedom to diverge from EU regulations constitutes an economic benefit (and, certainly, to claim that it could remotely compensate for the costs of having that freedom). Indeed, the reason why the Tories did not greatly diverge from EU regulations when they were in power was not through any lack of zeal. For example, no one could accuse Jacob Rees-Mogg as deficient in such zeal yet, when he was Minister for Brexit Opportunities, he was notably reduced to asking Sun readers to identify what these benefits might be.

Perhaps the more important point is a political one, and it is one replete with ironies. For whilst the government may be diverging more from some EU regulations than its predecessor and is certainly disappointing many of its anti-Brexit supporters in doing so, its opponents are insisting that it is doing the opposite. Indeed, there has been a rash of anniversary commentary (marking six years since the UK formally left the EU and, more imprecisely, ten years since the referendum) bemoaning Labour’s – yes, of course – ‘betrayal’ of Brexit. I’m not sure, by the way, when it was first claimed that Brexit had been betrayed, but I suspect that it is approximately the tenth anniversary of that, too.

A necessary betrayal

More specifically, the Express has launched a “crusade” to “Give us a Proper Brexit”, a campaign backed, inevitably, by Nigel Farage and, even more shamelessly, by Boris Johnson and Kemi Badenoch. Since Johnson actually negotiated the terms of Brexit and Badenoch had key ministerial roles associated with delivering post-Brexit ‘opportunities’ it's questionable exactly what their credentials as ‘crusaders’ for ‘a proper Brexit’ might be. The obvious conclusion should be that ‘proper Brexit’ is a mirage, but it is one which eludes arch-Brexiters such as serial idiot Daniel Hannan (£),  for whom the “cowardice” of Britain’s leaders explains why Brexit is “not more popular” (even that formulation is slyly dishonest, as if it is ‘popular’, but could be more so).

All of this is dismally familiar, since the claim that Brexit would all have been wonderful if only it had been done ‘properly’ has, like the claim that it has been betrayed, been endlessly repeated since 2016. Equally dismal is that, even after all these years, Brexiters either can’t describe what this ‘proper Brexit’ would consist of or, if they can, are unable to agree with each other’s descriptions. Even more dismal is that what most of them do now agree about is that true Brexit means leaving the ECHR, which was never entailed by Brexit.

However, the ‘proper Brexit’ theme has a new and particular salience in the current political context. That context is, of course, the rise of Reform UK, and the increasingly urgent need for its opponents to expose its vulnerabilities. These are multiple, including the many failures and scandals which have attended even the short time it has controlled local councils, and several of them centre on Farage, on whom Reform is almost totally reliant. His vulnerabilities include his close relationship with Trump, his admiration for Putin, his financial dealings, and, at least potentially, Brexit. After all, this is the defining policy of his political career.

If it was remotely possible to make the case that Brexit had been a success, then Farage would certainly be taking credit for it. The fact that he does not, and has even called it a failure, is one of the strongest pieces of evidence why there is simply no plausible basis for the continuing attempts of some Brexiters to claim otherwise. Unlike those diehards, Farage, who if nothing else is an accomplished political operator, knows that that argument has been lost. Yet he can hardly disavow Brexit as an ‘idea’ given both his own support for it and the deep emotional commitment to it amongst his core voters. Thus the narrative of Brexit betrayal is absolutely central to his political credibility and prospects, and, in turn, to those of Reform [3].

This is one reason why the steady stream of Tory defections to Reform, Suella Braverman being the latest, is potentially damaging to his party. Along with the general point that this makes it harder to sustain Reform’s image as an insurgent alternative to ‘the Establishment’, and the Conservative Party in particular, it prompts the specific question: who betrayed Brexit, if not these former Tory MPs and government ministers? Naturally, they would have their own answers (the civil service, the judges, the metropolitan elite etc.), but, for many committed or potential Reform voters, the answer will be Tory politicians, especially senior Cabinet ministers like Braverman.

The angry man

The next test for Reform’s prospects will be the forthcoming Gorton and Denton by-election. It will be an unusually complex contest, for the reasons set out with great clarity by the political scientist Professor Rob Ford of Manchester University. Some of that complexity is specific to the seat, and to this particular point in the electoral cycle (and now, very likely, the impact of the Epstein scandal), but some of it is a harbinger of what probably awaits us at the next general election when the splintering of party loyalties combined with the first-past-the-post electoral system will produce unpredictable and possibly bizarre results.

One thing which is specific to this by-election is Reform’s choice of Matt Goodwin as its candidate. Much has been written about Goodwin’s journey from being a reasonably successful academic specialising in the study of right-wing populism to a strident populist ideologue (the profile by James Ball in The New World last year and Ian Dunt’s assessment a couple of weeks’ ago will tell those who aren’t familiar with this story most of what they need to know). In some ways, he is just an identikit of such ideologues, notable, if at all, for a degree of pomposity and a whiff of megalomania (at one stage, he sought to found his own party and adopted a vaguely sinister avatar, now alas deleted, depicting himself in black and white, with jutting jaw, rather like a latter-day Roderick Spode). However, he also, far more than Farage, has become a more-or-less open champion for English ethno-nationalism, reflected in the fact that his candidature has now been endorsed by Tommy Robinson. Reform has repudiated that endorsement but, so far as I am aware, Goodwin has not.

If he is elected, then, it will betoken more than a win for Farage. Farage, whatever his true beliefs may be, has always been very careful, and fairly adept, at distancing himself from overt extremism, including repeatedly distancing himself from Robinson. He projects, fairly successfully, the image of a jovial, common-sense fellow, superficial as that image may be. Goodwin cuts a very different figure, and if he wins it will be an electoral endorsement of ideas which had been confined to the extreme fringes of the far right for decades, especially the idea that being born in Britain doesn’t make people British. His prolific, even hyperactive, social media postings have for some time now obsessively documented the actual or alleged crimes of immigrants, especially refugees, and predicted civilizational collapse. And, unlike Farage, who occasionally displays flashes of humour, Goodwin is relentlessly, splenetically, angry.

The angry brigade

In that respect, whatever the outcome of this by-election, Goodwin is representative of a group of voters who are highly active online, expressing their anger and in the process inciting their own and others' increasingly radical positions. Whereas much attention has been given to the online radicalization of the young and, especially, of young Muslims, this group are old (usually meaning the ‘baby boomers’ born before 1965) or middle-aged (usually meaning ‘Gen-X’ born between 1965 and 1980). They are also predominantly white, and generally but not always male. Apart from being slightly younger, having been born in 1981, Goodwin and his escalating online anger and growing radicalism perfectly fits the profile as, no doubt, do many of his followers.

Crucially, these people’s activities are not confined to the online world (the online and real-world distinction anyway being increasingly blurred). For one thing, as with older people generally, they are more likely to vote than younger cohorts. But they also take part in street politics, including the violent unrest and rioting associated with the asylum hotels ‘protests’. Recently, a few extreme cases have gone even further. One example is the ‘Ulez bomber’ convicted last week, who had not only apparently been radicalised by online far-right discussion forums but, in those forums, is regarded as a hero. In his case, he was arrested before he hurt anyone, unlike the far worse case of the ex-soldier who, in a fit of uncontrollable anger, rammed his car through a crowd of Liverpool fans, injuring 134 people. The background to his crimes is complex, but includes following a small number of social media accounts of whom most were associated with the far-right.

I’m obviously not suggesting that the online anger of right-wing populists necessarily causes people to commit crimes, or that most of those who post or are exposed to that anger engage in violence, or that crimes such as those mentioned would not occur anyway. But it is not unreasonable to assume that the online expression of anger amongst older people informs their political decisions (indeed, it is hard to imagine that it would not), and that it matches the age and gender profiles of electoral support for Reform. The same is probably true of support for the various small far-right parties such as Advance UK (which last week recruited two Devon County councillors who were originally elected as Reform candidates). And although this anger isn’t unique to Britain, it is hardly outlandish to say that in the British context it is connected to the anger which drove at least some of the vote for Brexit, and which continues to inform the anger about Brexit having been betrayed.

Political anger has been stoked this week by the Epstein scandal, and of course anger about that is by no means confined to the populist right. However, for the populist right specifically, it adds new ballast to its familiar critique of the ‘corrupt globalist elite’ and its general rejection of ‘mainstream politicians’ as all being as bad as each other. It does bear saying, though, that the scandal could backfire on them because it is already clear that there are multiple connections between Epstein and the British and American populist right, and that Epstein, like others in his circle of anarchistic oligarchs, was an enthusiast for Brexit. For that matter, it is revealing Farage’s brazen opportunism and hypocrisy, as he castigates Starmer for appointing Mandelson whilst praising the appointment at the time.

Nursery politics

But, in a sense, it’s all irrelevant. There will always be some new story or scandal to feed the anger, and the details get forgotten immediately, because, fundamentally, it’s not about this or that event, it’s about anger as a permanent political condition. I’m not sure that this condition of anger can be assuaged, not least because, as I’ve argued elsewhere, much of it stems from an impossible desire to reclaim an imaginary past or, more profoundly, not from a desire for grievances to be redressed but to luxuriate in the feeling of aggrievement. On either account, this explains why, for such voters, having been given Brexit, they are now even angrier because it isn’t the right sort of Brexit.

Strangely, whilst this anger is most evident amongst older voters, there is something childish about it. One of my earliest memories (and one my family reminded me of for years) is of a day when I was, perhaps, five years old and for some reason I pestered and pleaded for my mother to buy some honey. She eventually gave in, but when I saw it, I fell into a raging, uncontrollable tantrum because, I shrieked, she had bought the wrong sort of honey.

And this brings us back to the beginning of this post. For all that he has far more power than them, Donald Trump is not so different to the on-line army of angry old white British men radicalizing themselves and each other. There is at least a rhyme between the two. Trump’s rapacious and capricious ego, driving his unpredictable demands and vindictive assaults on anyone who crosses or slights him, is also child-like in its nature. Perhaps that is also why living through the current political period is so neuralgically wearisome, like being trapped in a nursery not just full of, but run by, angry screaming toddlers. It also brings us back to 'counting to a hundred' which, apart from being a useful antidote to the frenetic news cycle, was what a wiser American President, Thomas Jefferson, advised the very angry to do before speaking.
 

Notes

[1] The EU-India trade agreement underscores the fragility of claims about Brexit benefits, of which the UK-India trade deal is supposedly an example. The slight difference in timing hardly warrants that supposition (there are also some signs of closer EU-CPTPP integration). The same potentially applies to the regulatory choices exercised by the UK (e.g. in relation to gene-editing or financial services).

[2} For a detailed update on the reset and its future prospects, see this week’s policy briefing from Ian Bond of the Centre for European Reform.

[3] This means that Starmer’s attempts to attack Farage on Brexit aren’t very effective, and might even serve to endorse Farage’s own position, because in doing so Starmer insists on referring to “botched Brexit”. The reason, of course, is that he wants to imply to Labour leave voters that he is not opposed to Brexit and isn’t going to reverse it but ‘improve’ it. But even if that line made some kind of sense as an attack on the Tories, it effectively validates Farage’s claim that Brexit wasn’t done ‘properly’, even if he has a different view on how it should have been done.

Brexit: the next phase

The main Brexit news since my last post is the announcement of an agreement about Gibraltar made between the EU, UK, Spain, and Gibraltar. Although at this stage only a political agreement, which still needs to be put into legal text and ratified, this marks a certain kind of milestone in the Brexit process, for it is the last part of the negotiations which began under the aegis of Article 50. So, combined with the recent announcements at the ‘reset Summit’, it can be seen as the end of one phase and the beginning of another.

The Rock took ages

It’s worth pausing just to reflect on that, given that it is over eight years since Article 50 was triggered by Theresa May, five and a half years since the UK left the EU, and just a few days from now it will be the ninth anniversary of the referendum itself. I am not sure who first said it (possibly Rafael Behr), but the biggest lie about Brexit, a title for which there is much competition, was that it would be quick and easy.

It is somehow fitting that Gibraltar should be the last of the ‘withdrawal issues’ to be resolved since, at the very beginning for the Article 50 process, it gave rise to a strong candidate for another much-competed for title, the maddest moment of Brexit. I am referring to the time, in April 2017, when senior Tories, including Michael Howard, talked of the possibility of going to war with Spain. This followed the publication, immediately after the UK sent the Article 50 letter, of the EU Council’s draft negotiating guidelines. As I wrote at the time, and elaborated in more detail in April 2024, when it seemed as if a deal was in the offing, this episode contained within it many lessons which have run through the entirety of the Brexit saga, like words through a stick of rock (that is the last ‘rock’ pun).

I won’t repeat that discussion here. But it is relevant to say that the terms of what have been agreed are pretty much as trailed in 2024, and not very different to the ad hoc arrangements created in 2018 and semi-formalized at the end of the transition period. So it hardly needed to take so long to deal with, because the reality is that something like what has been agreed was the only credible option, and certainly the best option for the people who live and/or work in Gibraltar.

What has been agreed?

On the central issue of contention, there will be no passport or other checks on goods and people crossing the land border between Gibraltar and Spain, but there will be dual passport controls at Gibraltar’s airport and sea port (most arrivals at the latter are from cruise ships, with passengers pre-cleared for landing).

This means that the UK/Gibraltar authorities will operate one set of checks, and the Spanish authorities will operate another set, and these latter will also be checks for Schengen Area entry/ exit. It is a situation which has been compared with the kind of dual controls operated on Eurostar services between London and Paris/ Brussels (although the mechanics will be slightly different). This means in effect, although not, according to Foreign Secretary David Lammy, in formal terms, Gibraltar will be within the Schengen travel area.

One aspect of what has been agreed is that it will be Spanish, and not EU Frontex, border staff who will be policing the Schengen checks. This had been the subject of dispute during the negotiations, and appears to be a negotiating ‘victory’ for Spain, as, under the Tory government, the UK had apparently wanted Frontex to police the controls. It is hard to see why, though. It is no different to the way that the French authorities police Schengen for Eurostar travel, and one might have thought that Tory Brexiters would prefer a national agency to an EU agency, but it may be that, on this issue, their concern was more about any implication of Spanish sovereignty over Gibraltar. In practical terms, it seems irrelevant either way.

Much of the detail of this, and the rest of the agreement, including the precise arrangements for the UK RAF and military base on Gibraltar, has yet to be disclosed (although Lammy has said there will be “zero change” as regards the military base). There will also be a ‘level playing field’ agreement, encompassing state aid, taxation, labour, environment, trade and sustainable development, anti-money laundering, transport, the rights of frontier workers and social security coordination, presumably along the lines of what is in the UK-EU Trade and Cooperation Agreement (TCA).

Those things aside, perhaps the most significant provision is that there will be an EU-Gibraltar customs union, with implications for the harmonization of duties, including on alcohol and tobacco. It is an interesting development, since, Gibraltar was not a part of the EU customs union when the UK was a member state (and therefore customs union member), so in this respect Gibraltar, uniquely amongst British territories, will become closer to the EU as a result of Brexit [1]. That is perhaps some recompense for having to endure, with Brexit, something which 96% of Gibraltarians voted against.

Sovereignty betrayed, part 94

All of this led to predictable cries of betrayal and loss of sovereignty from Brexiters, although it’s worth saying that the Conservative frontbenchers, perhaps mindful that their party was gearing up to agree something very similar last year, have so far been fairly muted in opposing it. No such constraints exist for Tory backbenchers like Mark ‘D-Day’ Francois, or for the Reform blowhards who denounced the agreement as a “surrender”, but on this occasion their position is even more convoluted than usual since they seem unsure whether what is at issue is their usual bleat about ‘surrender’ to the EU or whether it is a ‘surrender’ to Spain.

There has been some of the former, mainly in relation to the tax harmonization and eventual customs union plan. However, the main focus of Brexiter complaint has been the fact that Spain will police the airport controls, with the possibility that British citizens could be refused entry by Spanish border guards (they would, of course, have been equally, or more, outraged had the deal put EU Frontex staff in charge: we know this, because they were outraged when it was under discussion).

Actually, one thing which the official statement of the agreement makes abundantly clear is that it exists “without prejudice to the respective legal positions of Spain and the United Kingdom with regard to sovereignty and jurisdiction”. But if the Brexiters believe otherwise, then they should acknowledge that it is yet another example of how they misled British voters before the referendum.

For in May 2016 the then Foreign Secretary Philip Hammond said: “I genuinely believe that the threat of leaving the European Union is as big a threat to Gibraltar's future security and Gibraltar's future sovereignty as the more traditional threats that we routinely talk about.” The reaction from Brexiters was furious, with Liam Fox enraged that the possibility should even have been mentioned, saying: “I think there are limits to what you can and cannot say in any campaign that goes way beyond acceptable limits” [sic]. All this was reported in the Daily Express under an inevitable headline about ‘Project Fear’.

So now, in 2025, if the Brexiters are really saying that Gibraltar’s sovereignty has been undermined by Brexit, they should surely admit that Hammond was right and Fox was wrong. Alternatively, they might reflect on the way that their ideological counterparts in Spain have also reviled this week’s deal as an abject surrender of sovereignty, but on their telling it is the Spanish government which has made the surrender!

Brexitism and the Beeb

But this is to ask for consistency and self-awareness from those who can barely muster a coherent argument, or even basic knowledge of the facts. To take one example, David Bannerman, one of the most hardcore of Brexiters, fulminated that the deal violated the sovereign rights of British passport holders to live in Gibraltar all year round (since Schengen rules would not allow this). It fell to Fabian Picardo, Gibraltar’s Chief Minister, to school the Tory ex-MEP that such rights had never existed. It was a reminder of the way that, even now, after all these years, some of those most committed to Brexit have so little understanding of the practicalities of what being in the EU meant.

Equally illuminating was the way that former Brexit Party MEP Lucy Harris [2] spluttered about the deal having “sold off” Gibraltar and being “anti-British” before eventually settling on it being “anti-democratic”. This, she argued, was because the people of Gibraltar hadn’t been consulted, and because it “insulted” them and also “Brexit voters, northern voters of this country” (the country she presumably meant, in a rather ‘anti-British’ usage, being England). That was a strange juxtaposition, since it is not obvious how something can insult both those who voted to remain and those who voted to leave, and of course the deal is very much what Gibraltarians have been wanting for years (and was negotiated, and will be subject to ratification, by their elected representatives).

Harris’s comments would hardly be worth dwelling on – and, like her fellow Brexiters, she does not have any practical alternatives to the agreement – except that they illustrate how, even as the last part of the UK’s withdrawal from the EU is laid to rest, the ‘Brexitism’ it spawned is more vibrant than ever. There is now an almost literally endless supply of Brexiters – low-grade, if you like, but, still, as in this example, appearing on flagship current affairs shows on the BBC and other major news outlets – who are able to do little more than spout slogans.

In the case of the BBC, especially, I suspect it is because they have been so cowed by populist attacks that they feel obliged to give representation to a position that has so few elected representatives that they have to fall back on people like Harris. This forces others (including BBC journalists themselves) to respond as if engaging with serious comment, and as a consequence political discourse as a whole becomes framed by Brexitist talking points. And whilst the BBC is not the only culprit, it is, by virtue of its position, undoubtedly the key media institution influencing that discursive framing.

A new phase in the Brexit process

Whilst the Gibraltar announcement can be seen as the last moment of the Article 50 process, it can also be understood as part of the beginning of the reset process. As I mentioned in a recent post, there had been reports that a deal over Gibraltar would be a precondition for any reset deal to be announced at the UK-EU Summit in May. As it turned out, the Summit produced an agreement (of sorts) in advance of the Gibraltar announcement, but it is hard to believe there was no linkage between the two. That is to say, the Gibraltar agreement was almost certainly anticipated at the time of the Summit and/or had it subsequently failed the materialize then the potential deals envisaged by the Summit would have been unlikely to progress.

Indeed there is a wider point here. The first substantive paragraph of the Joint Statement of the Summit affirmed that in announcing their new “strategic partnership” the UK and the EU “agreed this would build on the stable foundation for our relationship set by the Withdrawal Agreement, including the Windsor Framework, and the Trade and Cooperation Agreement, and reaffirmed our commitment to their full, timely and faithful implementation.” In other words, there is a clear sense, and a clear expectation, that the reset is contingent upon delivering the original withdrawal terms. That should now be taken to include the belated completion of those terms by the finalisation of the Gibraltar agreement.

This presumably has the potential to be at least a background feature of negotiations about the various potential reset deals, such as an SPS deal, in that they would be likely to be jeopardised by any actual or perceived failure of the UK to implement the existing agreements. That might include issues such as failing to honour the level playing field commitments of the TCA, for example over state aid, failing to fully implement the Windsor Framework version of the Northern Ireland Protocol, or failing to operate the EU Settled Status Scheme arising from the Withdrawal Agreement in an effective and equitable manner. In short, we may be moving to a new phase in UK-EU relations, but it is still anchored in the previous phases, and the new phase creates a negotiating ratchet (for both the UK and the EU, but most obviously for the EU, as the UK is the demandeur) to ensure compliance with the previous agreements [3].

What the new phase will look like

Whether or not that turns out to play a part in ongoing reset negotiations, what certainly will be an issue is the extent to which the UK has already passively or actively diverged from EU regulations. It is true that, in fact, there has been relatively little regulatory divergence since Brexit, and once the Product Regulation and Metrology Bill becomes law (as it is about to) it will be easier to avoid passive divergence. However, there have been some potentially significant active divergences already, most obviously those relevant to a future SPS agreement.

One important example is the divergence in gene-editing regulations. As I discussed in a post in February 2022, when the legislation was being developed, this is a regulatory area which, although not without its critics, could justifiably be thought of as a Brexit opportunity. That legislation, which only applies to England, has now been passed, as the Genetic Technology (Precision Breeding) Act 2023 and was welcomed as “game-changing” by the John Innes Centre, a leading research centre in the area (and, somewhat less enthusiastically, by Peter Mills of the Nuffield Council on Bioethics).

This legislation explicitly moves away from the EU’s approach to Genetically Modified Organisms regulation but an additional complexity is that the EU’s approach, too, is in flux. This means that it is not, at present, knowable exactly how the UK and EU approaches will differ at the point of any SPS deal which may be done. This situation does not present insurmountable obstacles to such a deal, and Jiyeong Go and Emily Lydgate of the Centre for Inclusive Trade Policy have recently set out a much more detailed explanation of the issues, including some possible resolutions. But it is illustrative of the kind of detailed, technical practicalities which will have to be thrashed out, presumably behind closed doors, in the coming months (or even years).

A second example is animal welfare where, again, Brexit has enabled what some see as positive developments, most notably the Animal Welfare (Livestock Exports) Act 2024, banning the export of live animals (although other promised post-Brexit legislation, such as the Animal Welfare (Kept Animals) Bill 2021, was shelved). Brexiters and some animal welfare campaigners have already begun to raise concerns that such divergences from EU regulations will not survive an SPS deal. Again, this need not be an insurmountable obstacle to an SPS deal, but it shows that the negotiations will take time, and may involve political difficulties within both the UK and the EU because of the powerful interest and lobby groups with a stake in the issues. It is not just about Brexiters blindly insisting that all divergence from the EU is good, it is also about interest groups who genuinely see particular divergences as desirable.

Whilst these examples both relate to a possible SPS agreement, the underlying issue of dealing with such divergence as has already occurred will feature in any area which entails dynamic alignment of UK and EU regulations. The Summit documents suggested that these might include linking Emissions Trading Systems, and UK participation in the EU internal energy market. Although not mentioned, another area which I understand to still be on the UK government’s agenda is a linkage of the UK and EU REACH systems for chemical regulation. That has always been a sensible idea, since in substantive terms they are very similar, but it would pose, amongst other things, issues of passive divergence, for example in terms of different approaches to ‘forever chemicals’. In an interesting assessment of how the reset might now progress, former senior civil servant Sir Martin Donnelly has identified other areas where dynamic alignment might open up new cooperation. These include medical devices and pharmaceuticals and even, in what would be a rather different vein, VAT harmonization.

Whatever the scope of what is pursued, the overall point is that this emerging Brexit ‘phase’ is going to be characterised by a whole series of highly technical negotiations in various, often discrete, policy areas. Of course that was also true in previous times, but the difference now is that they will not be held within a single, even if complex, process. No doubt there will be some overall political coordination, in both the UK and the EU, but it won’t be like the Article 50 process. Nor is there likely to be the same level of media interest, and there certainly won’t be the kind of parliamentary attention (one of the criticisms, even from those who welcome it in principle, of the Gibraltar agreement is that, like post-Brexit trade deals, it will be subject to almost no parliamentary scrutiny).

So I suspect that it is going to be quite difficult to keep track of developments. It will probably require paying attention to the specialist trade media in particular sectors, and perhaps to periodic howls of rage from Brexiters when they realize what is happening (such howls should be a reminder, to ‘remainers’, that there is a genuine, if limited, anti-Brexit agenda within Labour’s policy). There will also be some specific public moments, such as future summits, meetings of the various bodies set up by the Withdrawal Agreement and the TCA, and, as regards the TCA specifically, its own scheduled operational review in 2026.

Equally, there is now much less at stake than there was. That shouldn’t be misunderstood. Things like the Gibraltar agreement certainly matter for those affected, and the various reset deals will (or might) make a real difference to those within the relevant areas. But the basic architecture of Brexit is quite clearly not going to change under this government, which will presumably last until 2028 or 2029, and the EU has no particular interest in effecting more than marginal changes. As I argued in a recent post, there won’t be another ‘reset’, just some ongoing resetting of Brexit which may see (at best) a sanding off of some its rougher edges.

Nine years on

So, with that, I am going to sign off for the summer since I don’t anticipate there being much Brexit news of note. That may turn out to be one of those predictions that looks stupid in retrospect, in which case I will post. Otherwise, I plan to resume at the beginning of September. If I am right in what I have written here about the nature of the Brexit process in this ‘new phase’ then I suspect the focus of this blog is increasingly going to become not so much Brexit – the UK leaving the EU – as the Brexitism which is one of its most significant and, in some ways, most surprising legacies.

Meanwhile, one reasonably safe prediction is that next week, when, as mentioned above, the ninth anniversary of the Brexit referendum falls, there will be a spike of commentary. Most of it will be predictable, and some of it will also be intensely irritating. I would simply suggest reading Daniel Hannan’s risible essay, penned two days before the referendum, depicting what Brexit would seem like when we reached 24 June 2025.

That, if anything, exemplifies a prediction that has turned out to look stupid. But it’s more than that. It was a prediction which was never going to come true. So my other suggestion for the anniversary is to read, if you haven’t already done so, my book Brexit Unfolded. How no one got what they wanted (and why they were never going to), the second, updated, edition of which was published in September 2023. It tells the story of what happened, starting the day after the 2016 referendum. I’m biased, of course, but I’m not entirely alone in thinking it is about the best book about Brexit.

Have a good summer, and many thanks to the many tens of thousands of you who continue to read this blog regularly. I appreciate it, especially now that there are so many other ‘content creators’ competing for your attention.

 

Notes

[1] For those who may be wondering, Gibraltar does not participate in any of the Free Trade Agreements made by the UK since Brexit, so it forming a customs union with the EU will not imply any revision to those Agreements.

[2] Harris was elected as a Brexit Party MEP in May 2019. She subsequently resigned the party Whip in December 2019 and, in January 2020, sat as a Conservative MEP until the UK left the EU at the end of that month. No doubt she has many qualities, but I don’t think it is unreasonable to say that she is not a major political figure.

[3] In case it is not obvious, I am not really suggesting that there have simply been two, neat, phases of Brexit. It would be possible to divide what has happened since 2016 into several phases, or none. But the combination of a) the Gibraltar agreement being the last of the original, Article 50, withdrawal issues; b) the near-contemporaneous announcements made at the reset Summit; and c) the way that the reset Summit formally marked how the Labour government’s approach to Brexit differs from its predecessors does constitute one way of periodizing the Brexit process to date, if only for heuristic purposes.

How can Brexit Britain navigate Trump’s World?

I apologise for the fact that this is going to be a very long post. But events since the previous one have served not just to illustrate the analysis there of a new global divide, but to show this divide to be deepening very rapidly. As numerous detailed commentaries have explained, the Munich security conference and its aftermath have “laid bare the collapse of the transatlantic alliance”, showing that “the American security shield has gone forever” with the result that “it has been without question the darkest week for Europe since the 1940s”. Phillips P. O’Brien, Professor of Strategic Studies at St Andrew’s University, wrote last weekend that “this is arguably the most important week in European history since 1991 or even 1945”. Unlike those dates, what is happening in 2025 carries little in the way of hope, and, with Trump’s announcements and actions becoming more unhinged by the day, any hope there may be is fading very, very fast.

The analysts I’ve just quoted are not excitable catastrophists, but seasoned, respected experts in politics and international relations. I would like to think I share at least some of those qualities, to at least some degree, and, personally, having for nine years been dismayed by what Brexit has done to Britain, I now actually feel frightened by what may happen here. An obvious response to that would be that there are many places, most especially Ukraine, which have far more to fear. That is most certainly true (and it is also true of the US itself where state-induced political intimidation and fear are flourishing, to the horror of decent Americans). Equally, it may be objected that what is happening has little to do with Brexit. However, that is not true.

What’s it got to do with Brexit?

As all those analysts, and many others, make plain, these ongoing developments are not just about ripping up security alliances and global norms, and not just about the empowerment of nationalist ‘strong men’ to carve up the world according to their whims, crucially important as those things are. Rather, as well as what they mean for relations between states, the pronouncements coming from Washington, most recently in Vice-President J.D. Vance’s Munich speech, are proselytizing for far-right and ‘alt-right’ populism within states. Hence Vance’s praise for Brexit and his comments about the German and Romanian elections, which of course come on the heels of Elon Musk’s repeated interventions in British (£) and German politics.

The two aspects are linked. The Trump regime’s loathing for ‘Europe’ is multi-dimensional, seeing it as a parasite in security terms and the ideological homeland of elitism, woke liberalism, and globalism. The EU, specifically, is despised, and resented, as an economic and regulatory power and, perhaps more diffusely, as an exercise in rules-based international cooperation and pooled sovereignty. Indeed, hatred of Europe and of the EU is one of many strands binding together Trump, Putin and the Brexiters.

Since the UK is geographically, historically, economically and, in many respects, ideologically a European country, this necessarily poses profound questions for this country. But Brexit greatly complicates those questions, not simply because it means the UK is detached from the EU, but because Trumpist approval of that makes it quite likely that the US will attempt to exacerbate that detachment at precisely the moment when its folly is most obvious. That might take the form of offering the UK exemptions from new tariffs (about which much is still unclear) or other, including non-material, favours. Far from the present moment being one where, as Keir Starmer seems to think, the UK can once again be a ‘transatlantic bridge’, the reality is that it has the potential to rupture the country, ripping it further from its ideological and geographical allies in Europe but with no prospect of being anything other than the plaything of Trump’s increasingly vicious and unpredictable whims.

However, it is not just a matter of Trump seeking to meddle in Britain’s international relations and internal politics. Nor is it just that, in doing so, he will be joining Putin’s own longstanding attempts to do the same. If it were only that it would be obnoxious and dangerous. What makes it, also, frightening, is that both Trump and Putin have so many willing and powerful accomplices within the British polity*. That means, most obviously, Nigel Farage, the now dominant alt-right and NatCon elements of the Tory Party, the weird ex-RCP coterie and the Tufton Street mafia – both groupings which enjoy disproportionate media influence – and, it is increasingly clear, the ‘Blue Labour’ movement. And they would be neither so numerous nor so powerful had it not been for Brexit.

It was an apposite coincidence that, on the very same day that Starmer went to Paris to meet other European leaders this week to discuss Trump’s Ukraine démarche, the ‘Alliance for Responsible Citizenship’ (ARC) met for a major conference in London. This was a gathering of the assorted world-wide clans of populism and neo-fascism, with British representatives including Kemi Badenoch, Farage, and the ARC Advisory Board member Maurice Glasman of Blue Labour. For want of a better name, the UK contingent can be called ‘Brexitists’ since their bedrock belief is support for Brexit, denial of its failure, and commitment to some or all of its flawed logics.

There are many things at stake in all these unfolding developments, but for the UK, specifically, their immediate manifestation is the question of this country’s relationships with the EU and the US. The Brexitists are quite clear that this is the latest front in their battle, exemplified by Daniel Hannan (who else?) declaring (£) that “we can’t let Labour drag us back into the shrinking orbit of the anti-Trump Eurosphere”. He was right to identify Vance’s Munich speech as making it undeniable that there is a very fundamental choice to be made but, as usual, entirely wrong about what the response should be.

A new proposal for UK-EU relations

Nevertheless, a response will have to be found, and one proposal was made in a report commissioned by Best for Britain (BfB), which was published at the beginning of last week, and which received a lot of media attention (£). It is a timely, important, and serious piece of work, and warrants serious attention, as a constructive proposal to move beyond the current Brexit impasse and to engage with some of the emerging realities of Trump’s new world order.

The report models the economic effects of ‘strong regulatory alignment’ between the UK and EU as regards goods, and also as regards both goods and services, and then models each of these in the scenario of Trump imposing trade tariffs on all goods imported by the US (at an assumed rate of 20% for those from the UK and the EU). Importantly, pursuing strong regulatory alignment in the meaning of the report would not require the Labour government breaching its ‘red lines’ of not rejoining the EU, the single market, or the customs union, and of not agreeing freedom of movement of people. In that sense, it is intended to be a politically viable proposal from a UK perspective.

The ‘headline’ results are quite striking. With strong regulatory alignment in both goods and services, and if there were no Trump-tariffs, UK GDP could be up to 2.2% higher per annum in the long-run than it would otherwise have been, and, even in the event of Trump-tariffs, up to 1.5% higher. This would make a substantial dent in the standard (OBR) estimate of Brexit making UK GDP 4% lower than it otherwise would have been in the long run, and considerably more effective than the more basic ‘reset’, consisting simply of those things the UK and EU have specified they will seek, which John Springford of CER recently estimated to be worth 0.3% to 0.7% of UK GDP. Moreover, both for many individual EU member states and for the EU as a whole the result would be positive or, in the event of Trump-tariffs, would make their impact less negative than it would otherwise have been. So agreeing deep regulatory alignment is presented as a ‘win-win’ for the UK and the EU.

The core concept of the report is that of ‘strong regulatory alignment’:

“Regulatory alignment in goods in this scenario is based on the principle of mutual recognition by the UK and the EU of each other’s regulations. We envision an expansive approach to mutual recognition, in which the UK and the EU take active steps to minimise regulatory divergence and commit to recognising the equivalence of each other’s regulations.” (p.12, followed by a similar definition for services).

This will be very familiar to readers of this blog, and to Brexit-watchers generally, and perhaps will be ringing some alarm bells, because ‘mutual recognition’ has for years been seen by many Brexiters as the silver bullet to reduce the economic costs of Brexit. BfB, of course, are very far from being Brexiters, but whoever proposes it, it has the same problems. I’ve written about these numerous times before, most recently on the last occasion the idea surfaced.

What is ‘Mutual Recognition’?

This is a very complex issue to unpack in full. In broad terms, mutual recognition (MR) means that goods and services which meet the regulations within one market are deemed to meet those which obtain in another, and vice versa. Within that, one crucial distinction is between MR based on ‘equivalence’ and that based on ‘dynamic alignment’ (and/or other forms, such as MR of conformity assessment testing, which I won’t discuss here, though could also become relevant).

Under ‘equivalence’ agreements, the EU and the UK would recognize that, whilst different in some details, their regulations were broadly compatible, and each party would take responsibility of legally enforcing their own regulations. Under ‘dynamic alignment’ (DA) agreements, one party – and in practice it would almost always be the UK – agrees to completely track EU regulations, and as a result the UK’s regulations would be ‘recognized’ by the EU. This is really only ‘mutual recognition’ by courtesy, as the alignment is all one way, even though the ‘recognition’ goes in both directions, and both the source and the enforcement of regulations would ultimately lie with EU law and EU courts.

So, much depends on what form of MR is envisaged, and in that respect the use of the term ‘equivalence’ in the BfB report is either an unfortunate mistake or a problem. We already know that the EU is very reluctant to enter into equivalence agreements with the UK. They aren’t impossible (there are some in relation to aspects of financial services and, in effect, in the EU recognition of the ‘adequacy’ of the UK data protection regime), but as regards Sanitary and Phytosanitary (SPS) regulations an ‘equivalence’ agreement (sometimes called a ‘New Zealand-style’ agreement) has already been proposed by the UK and rejected by the EU. By contrast, a ‘dynamic alignment’ (or ‘Swiss-style’) SPS agreement has been offered by the EU but rejected by the UK.

It isn’t just on SPS regulations that we’ve already been round this loop. MR based on equivalence in a number of areas featured heavily in the UK government’s February 2020 document on its approach to the negotiations undertaken by David Frost, under Boris Johnson, which ultimately led to the TCA. Almost all those proposals foundered, as they were bound to. In large part that was because what makes equivalence appealing to Brexiters (most especially lack of ECJ jurisdiction) is what makes it unacceptable to the EU. As Michel Barnier put it in 2018: “In the absence of a common discipline, in the absence of EU law that can override national law, in the absence of common supervision and a common court, there can be no mutual recognition of standards.”

What about expansive use of Dynamic Alignment?

However, although regulatory equivalence as the basis of expansive MR is a non-starter, what about ‘dynamic alignment’ (DA)? Since the EU does appear to be willing to use that form of MR for SPS regulation, could it perhaps be used expansively? It’s true that this would overcome the problem that lack of ECJ involvement poses for the EU. It also seems to be true that the presence of ECJ involvement is no longer a red line for the UK under the Labour government. Nevertheless, other issues would still remain.

In particular, even under DA each side has to monitor (and/or trust the other side to monitor) that both sets of regulations are aligned. This is a much more complex matter when DA is being used over a wide range of sectors, as envisaged by the report, partly because there is so much more to monitor and partly because there will often be difficulties in knowing where MR applies and where it doesn’t. This arises because crucially, even under the most ‘expansive’ use of DA, but unlike within the single market, the UK would retain the right to diverge in areas not covered by DA.

To take one increasingly important example, assume, as seems extremely likely at the moment, that the UK retains (and perhaps even exercises) the right to diverge in AI regulation. Given the extent to which AI looks set to be imbricated, in some way or another, within so many different business sectors across both goods and services, imagine how difficult it is going to be to determine whether, in relation to any particular product or sector, DA does, or does not, apply. I don’t say that it would be impossible, and certainly the AI example, specifically, is largely uncharted water, but it would involve huge technical complexity, at least if attempted not for one or two areas but at scale.

Indeed the problem isn’t DA agreements as such, it is scaling them up so as to meet the ‘expansive’ MR regime required to yield the headline economic benefits of the BfB report. Ultimately, that isn’t just about technical complexity, it is because the expansive use of DA is effectively an attempt to reproduce selective aspects of the single market but outside of the ‘ecosystem’ of single market agencies and institutions. As such, the more it is used, the more of a threat it would represent to the integrity of the EU single market meaning, at its most generic, the way in which membership confers distinctive advantages over non-membership. That notion, which some Brexiters tend to treat as meaningless or, alternatively, as some kind of EU ‘theological’ dogma, is actually of fundamental importance (hence, amongst other things, many of the issues that have arisen for Northern Ireland).

So (why) would the EU agree to it?

To that, there are several answers. One is that, unlike proposals for equivalence agreements, MR hasn’t been proposed before on a DA basis. Actually, that isn’t quite true, as arguably it was proposed, at least for goods trade, under Theresa May’s 2018 Chequers Proposal for a ‘common rule book’, but as that caused her government to implode it never really got to the point of being negotiated in detail with the EU in the form of a TCA, and would undoubtedly have encountered much resistance from the EU (I’m skipping over a lot of detail on this point). Still, something like it might eventually have been agreed and, anyway, we are now in different times, not least because EU concerns that Brexit might lead to a bigger exodus of members have now largely disappeared. Even so, the EU continues to face the possibility that an expansive DA deal with the UK might set a precedent, with member states seeking to ‘mix and match’ areas for alignment/ divergence.

The more important answer is that we are in different times because the economic situation of the EU, and especially of its largest members, Germany and France, is now much worse than it was in 2018, and the most important answer of all is Donald Trump. Those two things are related, because the state of many EU economies makes the threat of Trump-tariffs all the more dangerous. It is this, clearly, which the BfB report highlights, showing how a strong alignment scenario between the UK and the EU could offset some of the damage of Trump-tariffs, and it is on this basis that it is presented as a win-win proposal.

That may well be true, but, although the context is different, it is still a rather familiar idea, and another one which we used to hear from Brexiters. Their claim from the outset was always that there would be a very expansive post-Brexit deal, even to the extent of offering “the exact same benefits” as membership, because that would be in the interests of both sides, and they repeatedly complained that the EU was allowing ‘politics’ to get in the way of economic interests. In particular, they repeatedly argued that ‘German car makers’ (as an emblem for other EU industries) would ensure such a deal and, when that proved false, again framed that as an EU failure to represent the economic interests of its members and instead to prioritise Brussels ‘dogma’.

But (apart from their other flaws) these claims were mistaken by not recognizing that, whatever the immediate economic interests of some businesses, or even some countries, the long-term economic interests of all EU members and businesses were absolutely dependent upon retaining the integrity of the single market, and the expansive use of MR, even in its DA form, necessarily risks that, extensively recreating selective aspects of the single market for non-members. Now perhaps it is true that the possible impact of Trump’s tariffs will change the balance of calculations of the risks and benefits of this. But personally, I feel suspicious of yet again going down the track of making proposals based upon assumptions about what the EU will, or ‘ought to’ recognize as being in its own interests.

Having said all this, it could still be argued that Trump’s return, in a dramatically more aggressive and virulent posture than before, has changed everything, not so much, or not simply, because of the economic threat of tariffs but because of having started to rip up the international security order, and all the issues with which I began this post. Is this true? To be honest, I simply don’t know. In some ways, the opposite could be argued. To the extent that the single market is the economic basis of such geo-political clout as the EU has, that might suggest there is all the more reason to maintain its integrity.

Nevertheless, I do think that, despite what some ‘die-hard remainers' think, the understandable unwillingness of the EU to make economic concessions to the UK in return for security and defence cooperation, a proposition which was first made by May when Article 50 was triggered in 2017, and looked like blackmail then, may have changed. Almost everyone now thinks that Europe, as a continent, needs to get itself together as a serious defence player, and that is not going to be easy. It will entail the EU and its members doing many things they find distasteful, and this could be one of them. It might also be that previous, and again understandable, reluctance to entertain a complex and tangled MR-based relationship between the EU and the UK might be reduced. In a world which has suddenly become extremely disordered that might now seem a relative trivial piece of messiness. It would certainly be lazy simply to dismiss that possibility out of hand as ‘cakeism’, or to dismiss the very real differences created by Trump’s return. This isn’t 2016-2020.

The real choice

For all these reasons, there may well be a good argument for the UK to explore the BfB report’s ‘strong alignment’ model and propose it to the EU, at least informally, and see what the reaction is. But I keep coming back to the problem that it is very difficult to see how the EU can embark on a major deepening of relations without a high degree of confidence that the UK is going to be a reliable partner, and there is no real prospect of that whilst Brexitism remains so influential. After all, it’s perfectly realistic to think we may be only three years away from having a nationalist and populist government with a doctrinal hatred of the EU.

For Brussels, that would mean dealing with a UK government which has scant regard for acting in a trustworthy manner about any MR agreements which may be in force and would very likely revoke them anyway. The answer to that concern cannot, realistically, be that, if it happens, the EU can just revert back to the current TCA terms after having put in all the effort of creating an expansive MR regime involving a complex patchwork of agreements.

Some deny any such risk exists, arguing that UK business lobbies would prevent any future government from revoking agreements made by Labour. But this is really just the ‘German car makers’ argument in reverse, and the history of Brexit hardly suggests that business is very effective in controlling a government – in this scenario perhaps a Reform-Tory coalition – animated by ideological loathing of the EU and populist conceptions of ‘sovereignty’. So the risk is real, and it would be a very considerable one for the EU to take.

Moreover, although this wouldn’t in itself remove that risk, it can hardly be encouraging to the EU that the Labour government has not, as yet, made an explicit commitment even to seeking a DA deal on SPS, let alone to any more ‘expansive’ use of DA. As long ago as May 2023 I wrote a post with a footnote pointing out that whenever Labour politicians talked about an SPS deal they invariably invoked New Zealand (i.e. equivalence, not DA) as a model, and that has continued to be the case, so even in this headline area for the reset, the government still remains ambiguous about specifics.

For what it is worth, I think the government will seek DA on SPS, and will agree it with the EU, but it certainly hasn’t been open or enthusiastic about what doing so means, apparently because it fears the Brexiters’ reaction, hence again demonstrating the unsettled nature of the UK polity. So if the BfB report encourages the government to boldly advocate the use of DA, and to take on and defeat its Brexiter critics, then it will have done a good job.

On the other hand, if Brexitism were to be marginalised in the UK, overcoming this problem, then there would be no need to fiddle around with endlessly complex and sub-optimal MR agreements and security pacts as we could move, as quickly as possible, to joining the EU, boosting the continent’s economy, and developing a proper, fully-integrated, European defence and security capacity. So, for all the talk of the UK facing a choice between the US and the EU, the deeper choice that codes is the domestic one of what kind of country we are. That seems no closer to resolution now than it has been since, in 2016, we embarked on the poorly-designed, divisive and poisonous Brexit experiment, an experiment which has now become the most horrific of political lab accidents.

 

Note

*On the other hand, the British, Brexitist, variant of this global right-wing movement faces particular challenges. The British public has generally negative views about Putin and Trump, and a generally positive view of Zelensky (and support for Ukraine). Even Reform voters are strongly anti-Putin. As has been shown before Farage’s views of Ukraine and Putin are his most vulnerable political spot, and this is now becoming very clear.

Five years on: stuck

As we approach the fifth anniversary of officially leaving the EU, even those who still profess to support Brexit are hard-pressed to explain what the point of it was, and scarcely bother to try. That lack of purpose was underscored by Kemi Badenoch's recent admission that the Conservatives took Britain out of the EU “without a plan for growth”. This wasn’t, as some have taken it to be, an expression of ‘Bregret’, but it was the first time a senior Tory has accepted that the manner in which Brexit was enacted was flawed and, at least by implication, flawed in ways which have done economic damage. Effectively, Badenoch repeated the critique Farage made in 2023 of the Tories’ handling of Brexit, one which Rishi Sunak denied at the time.

In that sense, it was a relatively easy critique to make, since the Tories are no longer in power, and Brexit is always at its shiny best when presented by those without responsibility for its implementation. What, like Farage, Badenoch cannot admit is that this lack of a growth plan (or any plan) was inherent to Brexit and not simply a matter of ‘mismanagement’. On the one hand, there was no way of delivering Brexit that would not have been economically damaging. On the other hand, there was no consensus view amongst Brexit’s advocates and voters as to what the (economic) plan of Brexit was meant to be. So it’s not just that any Brexit plan would have been damaging, it’s that there was no political basis on which to make even a damaging plan.

A Brexit wobble?

Nevertheless, Badenoch’s admission is significant, especially when taken in conjunction with the very different intervention from the LibDem leader Ed Davey, calling for the UK to agree a new customs union with the EU. As Lewis Goodall of the News Agents pointed out on his Substack last week, these developments mark a “wobbling” of the “shallow but broad political consensus in Westminster [whereby] no-one much liked [the Johnson agreement] but few wanted to re-open it, for fear of the daemons therein”. That assessment of Westminster is broadly true, especially given the reduced SNP presence in the current parliament, and it is certainly true that for both Tories and LibDems what their leaders have now said represents a departure from their election manifestos.

It is, however, only a ‘wobble’. Brexit still isn’t, for now at least, a major, overt part of political debate, and I think Goodall is right to say that the immediate consequences for how the government acts in relation to post-Brexit decisions are quite limited. Badenoch’s comments at least give cover for Keir Starmer’s line that the Tories made a mess of Brexit, whilst those of Davey at least potentially extended the terrain of what is discussable. But – and it is a very big ‘but’ – there is very little sign that the government has any desire, or even any idea, of how to escape from the very narrow parameters it has assigned to Brexit.

Labour’s narrow vision

More specifically, it is striking that, the ‘reset’ notwithstanding, Starmer’s government’s approach to Brexit sounds very similar to Badenoch’s, and, actually, to Rishi Sunak’s. Thus, Business and Trade Secretary Jonathan Reynolds dismissed Davey’s intervention as showing that the LibDems “only ever think about Europe” and babbled about how “this is a government that wants to improve that relationship with the EU but also wants to do work with the US, with India, with the Gulf”. That’s boilerplate Brexiter stuff, which could as easily have been said by Sunak.

Where both Reynolds and Rachel Reeves have an at least arguably better case is in saying that part of the cost of Brexit was the political instability and business uncertainty it created, and that revisiting the question of a customs union would mark a return to that. After all, how viable would it be to do so when there is a fair prospect of a Tory, or even a Tory-Reform, government returning, Trump-like, in 2029 to reverse it? On other hand, if economic growth is the government’s central mission, that is what should be driving policy. There’s not much point in banging on about having a ‘Plan for Change’ and then discounting change because it would produce instability. At all events, even if the government judges that a customs treaty is not politically feasible now, Starmer could still have made use of the opportunity Davey provided to nudge Labour’s Brexit parameters just a little.

Even leaving aside a customs union, the most obvious way to do so would have been to signal an intention to rejoin the Pan-Euro-Mediterranean (PEM) Convention on rules of origin. The case for doing so has been discussed again recently by customs expert Dr Anna Jerzweska and, crucially, it is something which would sit within the framework of the existing Trade and Cooperation Agreement (TCA). Significantly, this week Maros Sefcovic indicated that the EU is open to the idea of the UK joining PEM.

Even for the most rabid Brexiter, PEM membership is actually fairly uncontroversial, to the extent that the ‘instability’ argument almost certainly doesn’t apply. It’s not difficult to imagine that the Sunak government would have done it, and it’s quite likely, in my view, that it will eventually become Labour policy (the government had already begun consulting businesses about the idea). But it would have been far better had the overture come from the government when Davey provided an opening (if not, indeed, before) as something the UK is pro-actively seeking as being in the national interest.

As it is, Sefcovic’s comments have already been reported in the pro-Brexit press under the headline “EU plots to drag UK back into bloc”. No doubt something similar would be said had Starmer proposed it, but had he done so it would have put the government on the front foot. Instead, Labour are reduced to making the mealy-mouthed response that the UK “does not currently have plans” to join PEM, whilst confirming that doing so would not cross the government's 'red lines'. This keeps the door ajar, but also invites cries of ‘giving in to the EU’ were the government ever to step through it. It’s truly pathetic.

An even more striking illustration of the continuity of Labour and Tory policy is how, when Badenoch was asked how she would approach Brexit if she were in power, she came out with exploiting areas like technology and AI. This, of course, was Sunak’s pet project and, now, has been adopted by Starmer as the key to delivering “a decade of national renewal” with his rather oddly-worded desire to “mainline AI into the veins of this enterprising nation”. Such an ambition might not, in itself, be related to Brexit, but the government clearly sees it as being so. Thus, according to Reeves:

“There are opportunities outside the European Union, opportunities, for example, like AI, where we have a very different regulatory approach to AI compared to the European Union’s approach. That makes Britain a more attractive place for AI and tech companies to invest than in other European countries.”

Once again, this is boilerplate Brexiter stuff.

Strategic incoherence

The convergence of how Starmer and the previous Tory government talk about AI regulation is the starting point of an excellent piece by Joël Reland of UKICE. In it, he points to other ways in which the current government shows a proclivity to “flirt” with regulatory divergence whereas, in practice, “its revealed preference … is to align with EU standards”. This preference was further revealed by the government’s decision this week not to allow the ‘Stormont Brake’ to be pulled over chemical labelling regulations. This was the latest evidence that, as the BBC’s John Campbell argues, the government’s general approach will be to align the whole of the UK with any EU rules which apply, by virtue of the Protocol and Windsor Framework, to Northern Ireland.

There are several points within Reland’s analysis which are worth flagging or amplifying. One of these is the basic fact “that the UK is a second-order regulatory power”, and always liable to be pulled by ‘the Brussels Effect’ towards EU regulations. This would be the case anyway, because so much of the UK’s trade and supply chains are bound up with the EU, but, as the story about chemicals labelling illustrates, Northern Ireland makes it more so. That’s because, at least as regards goods regulation, UK-EU divergence also has the consequence of GB-NI divergence, so to avoid the latter requires also avoiding the former.

Another important point made by Reland is that Labour’s approach has, or potentially has, numerous contradictions because decisions taken in one regulatory area can conflict with those taken in another. This, I think, is the flip-side of, or perhaps just another way of expressing, the argument I made last August about Labour’s lack of a post-Brexit strategy. That argument was more focussed on what the government wants from ‘the reset’ per se but this is inseparable from a coherent regulatory strategy.

For example, it was reported in the FT on 8 January (£) that UK plans to diverge on gene editing regulation* are being delayed as they would potentially make the government’s key stated reset objective of an SPS deal impossible to achieve. However, the article reported:

“Defra declined to comment when asked whether it was delaying the legislation as a result of the warnings from Brussels. It also declined to repeat on the record its previous commitments to introduce the legislation or set a timetable for doing so.” 

Yet the next day, in the same paper, it was reported (£) that the Environment Secretary had said that the UK (presumably, Great Britain) would go ahead, with the legislation to come into force by the end of March.

It remains to be seen what will happen, but the point is that these reports, in a reputable outlet, written by reputable authors (including Peter Foster, who was a co-author of both of them), and published just a day apart, were able to tell quite different stories because the government itself failed to provide a consistent line.

What this illustrates isn’t (simply) the incoherence of the government’s approach, it is the incoherence of Brexit itself. Specifically, Brexit was wrongly seen as a way of removing regulatory ‘red tape’ and also as a way of gaining regulatory independence. From that, a great deal has flowed for what Brexit has meant in practice, but two issues, in particular, are now coming to the fore.

Lack of regulatory capacity

One, which is highlighted by Reland and by yet another recent piece by Peter Foster in the FT (£), is that it has thrown so much responsibility for regulatory infrastructure on to domestic agencies. It is not just post-Brexit trade and customs bureaucracy which have made nonsense of the Brexiter claim that leaving the EU would reduce ‘red tape’, it is also the repatriation of regulatory functions. Regulatory independence does not simply mean, as the Brexiters’ simplistic slogan had it, “taking back control of our laws.” It also entails developing regulatory capacity, as what was once provided on a pooled basis by the EU now has to be provided by the UK.

Right across the board, the British State is creaking under the weight of these demands, with underfunded, understaffed, and underperforming agencies. Examples given by Foster include the Food Standards Agency, the Competition and Markets Authority, the Health and Safety Executive, and the Medical and Healthcare Products Regulatory Agency. Now, and partly in response to this, the government has created the Regulatory Innovation Office, to update regulation and speed up decisions, with a particular focus on high-tech areas.

This may be no bad idea, including its recognition of the interconnectedness of some of these areas, but that also means that it sits astride a number of existing agencies, including some of those just mentioned. Arguably, that just adds another layer of organizational complexity and cost to an already creaking regulatory infrastructure. After all, there is something rather ‘Yes Minister’ about a kind of ‘regulator to regulate regulators’ in order to ‘cut red tape’. So, for now, the jury must be out on whether all this can possibly add up to the regulatory ‘nimbleness and agility’ promised by Brexiters in the past, and now embraced by Labour as part of its growth agenda.

The cold world of geo-politics

Whilst the Brexit policy of ‘regulatory independence’ creates many new costs, the second issue arising from it is that it is based on an illusion which founders on the rock of geo-political reality. This is partly the familiar matter of there being two or perhaps three regulatory superpowers, the US, the EU, and China. But, more particularly, it is about how, exacerbated by the return of Donald Trump, regulation is both an arena and a weapon of international conflict and competition. That is currently most evident in relation to social media regulation and AI regulation, but it also extends to less high-profile areas.

Many of these issues are highlighted in a recent, excellent, report from Marley Morris of IPPR on UK trade strategy. It is a wide-ranging analysis which is well worth reading in full, but, to take one example, before long, the UK needs to decide about whether to seek linkage of EU and UK Emissions Trading Schemes (ETS). Doing so, as Foster points out in his discussion of the IPPR report, is likely to be seen negatively by Trump. So, whilst this may be a decision for the UK, it is not one which can be taken in isolation.

The wider implication is that Trump’s ‘with me or against me' world view means that he will treat any UK decision – not just about relations with the EU, but with China, Russia, etc. – as a hostile act and a personal affront. And, in Trump-world, that means punishment. It is this world view which, as Rafael Behr argues, is rapidly going to force the UK to make “hard choices” which need to be “informed by a coherent strategic purpose”, and these choices go well beyond, though they include, those relating to trade and regulation.

In turn, this exposes the paucity of Brexit as a project of ‘sovereignty’. Not only was ‘freedom from Brussels’ largely illusory, it also increased Britain’s exposure to international power plays at precisely the time they have become more vicious and less predictable.

Is a strategy even possible?

In this sense, post-Brexit Britain’s problems are not simply those of lacking a plan for what to do with Brexit, they are those of being saddled with something with which little can be done. Having been touted as the solution to all Britain’s problems, Brexit has now become Britain’s foremost insoluble problem.

The Brexiters certainly don’t have an answer, and, if they say anything at all, simply continue to repeat already failed ideas, the most recent example being an embarrassingly feeble analysis by ‘Brexit brain’ Shanker Singham. It includes another outing for wide-ranging ‘mutual recognition agreements’ as the solution to the damage of Brexit. Meanwhile, poor old Robert Tombs, one of the original ‘Brains for Brexit’ is reduced to pondering why he was wrong to have “imprudently predicted that life outside the EU would so quickly be taken for granted that it would be hard to find anyone admitting to having voted ‘Remain’” only to come up with the half-baked idea that “Anti-Brexitism has become part of the ‘woke’ agenda.”

However, the Labour government has no real answer either. And whilst I agree with Behr, Reland, Marley and others who, in various ways, argue about the need to develop a coherent post-Brexit strategy, perhaps the stark reality is that no such strategy is possible: Brexit was strategically incoherent from the outset, and has only become more so. If that is so, there are just different versions of muddling through, some slightly better and some slightly worse, although the difference, small as it may be, shouldn’t be completely dismissed.

Of course, many people, perhaps especially readers of this blog, would say that there is an obvious answer, and it is to join the EU. And, although that wouldn’t resolve every problem for Britain, with Trump embarking on a far more internationally aggressive presidency than his first, and his acolytes explicitly attacking our country, the case to openly re-evaluate Brexit is stronger than ever. But, the recent ‘wobble’ notwithstanding, there’s no real sign of that happening. In May 2019, I wrote about Brexit as “an aporia, a pathless path, with no way forward and no way back”. Five years on from leaving the EU, that remains the case.

 

 

*This has long been seen, not just by Brexiters but by many scientists and commentators, as a regulatory area where the UK could benefit from divergence, and legislation has long been in progress (see my post of February 2022 for some discussion). But my point here isn’t about whether it is desirable or not, but about how it illustrates the lack of a coherently designed and clearly communicated regulatory strategy.