Archive for category: News

 

The changes for ‘businesses and citizens’ resulting from leaving the EU ‘single market’ and ‘customs union’ are unparalleled.  No country has ever left the EU before.  New rules apply to the relationship between Great Britain and the 27 EU states from 1 January.  The rules and penalties will be strictly applied across Europe – and there will be, according to the UK Government, “friction” in many aspects of life and work.

The relationship will be governed by an Agreement that will – if and when it is ratified – be the basis for an International ‘Treaty’.  The new regime is forecast to last for “decades”.

The UK negotiators wanted individual agreements on the many aspects of the separation, allowing areas to be ‘tuned’ in the light of experience.  They have had to settle for a comprehensive multi-provision agreement – the EU simply wanting to settle the terms of the split and move on to focus on its own agenda and priorities.

The UK has chosen to become a ‘third country’ – and the EU will want to divert as little attention as possible on a nation that has – according to the Prime Minister’s foreword in the 34 page summary of the ‘UK-EU Trade and Cooperation Agreement’: has implemented “the instruction of the British people – expressed in the referendum of 2016 and the general election last year – to take back control of our laws, borders, money, trade and fisheries.”

The full details of the Agreement – which we are told will run to 1200 pages – will be structured into 7 ‘Parts’.  My intention in this summary post is to allow business to home in on the areas that will impact them for further study and rapid response.

1. common and institutional provisions in the Agreement;
2. trade and some specific aspects of the relationship such as aviation, energy, road transport, and social security;
3. cooperation on law enforcement and criminal justice;
4. “thematic” issues, notably health collaboration;
5. participation in EU Programmes, principally scientific collaboration through Horizon;
6. dispute settlement; and
7. final provisions.

In parallel, there is a separate ‘Nuclear Cooperation Agreement; and an agreement on ‘Security Procedures for Exchanging and Protecting Classified Information’.

Details

Part 1 – Institution

The relationship between the UK and the EU will be based on in ‘international law’ and not ‘EU law’.  A joint ‘Partnership Council’ will ‘supervise’ the Agreement.

Part 2 – Trade

• The Agreement establishes ‘zero tariffs or quotas’ on trade between the UK and the EU where ‘goods meet the relevant rules of origin’.
• The EU may apply ‘preferential tariff rates’ e.g. non-UK components in UK manufactured products such as electric cars that support a move towards a carbon ‘Net Zero’ future.
• ‘EU inputs and processing’ may be counted as ‘UK input’ in UK products exported to the EU – and vice versa under ‘Rules of Origin’.
• The Agreement ‘envisages’ arrangements to share information on dangerous and non-compliant products on the UK and EU markets.
• There are Annexes detailing specific arrangements for: medicinal products; motor vehicles, equipment and parts; ‘organic’ products; wine; and chemicals.
• Provision is made for ‘rapid notification and emergency measures’ to ‘protect consumers, animals and plants during disease and pest outbreaks’ and ‘food and feed safety incidents’.
• The Agreement ‘ensures that the customs authorities of both Parties remain able to protect their respective regulatory, security and financial interests’.  There will, however, be ‘mutual recognition’ through ‘trusted trader’ schemes – aiming to support: efficient documentary clearance, transparency, advance rulings and non-discrimination. There may be measures in the longer term to promote ‘cooperation at roll-on roll-off ports like Dover and Holyhead’ aimed at reducing administrative burdens on business – such as sharing import and export declaration data.
• An Annex provides for the mutual recognition of the Parties’ respective ‘Authorised Economic Operator’ – AEO – security and safety schemes.  AEOs will face ‘fewer’ controls relating to safety and security when moving their goods between the UK and the EU.
• The EU and UK will both comply with existing international agreements such as the OECD ‘Convention on Mutual Administrative Assistance in Tax Matters’. UK and EU authorities will cooperate and exchange information relating to VAT for the purpose of combating VAT fraud.  Either Party may request the other to recover unpaid customs duties, excise or VAT on its behalf.

The Agreement on Trade also includes:

• provisions on ‘cross-border trade in services and investment’ that will secure continued market access across a broad range of sectors, including professional and business services, financial services and transport services – and will support new and continued foreign direct investment;
• a framework for ‘the recognition of professional qualifications between the Parties’ – based on the EU’s recent FTA agreements;
• provisions on authorisations, access to and use of telecoms networks, interconnection, fair and transparent regulation and the allocation of scarce resources;
• provisions on ‘authorisations, access to and use of telecoms networks, interconnection, fair and transparent regulation and the allocation of scarce resources’;
• promotion of trade in ‘postal and delivery services’;
• commitments on non-discriminatory access to ports; use of port infrastructure; use of maritime auxiliary services such as storage and warehousing; customs facilities; and the assignment of berths and facilities for loading and unloading;
• protections to ensure ‘regulatory and supervisory authorities will be able to act to ensure financial stability, market integrity and protect investors and consumers’;
• UK solicitors, barristers and advocates having the right to advise their clients across the EU on UK and public international law;
• cooperation on ‘digital trade issues’, including emerging technologies;
• commitments on the ‘free flow of capital and payments for goods and services in order to facilitate trade and investment’;
• mechanisms for ‘cooperation and exchange of information’ on Intellectual Property issues;
• requires both sides to be transparent about the subsidies they grant.  Either side may ‘take rapid action where a subsidy granted by the other Party is causing – or is at serious risk of causing – significant harm to its industries’;
• commitment of both Parties to ‘uphold global standards on tax transparency and fighting tax avoidance’;
• reciprocal commitments ‘not to reduce the level of protection for workers or fail to enforce employment rights in a manner that has an effect on trade’;
• reciprocal commitments ‘not to reduce the level of environmental or climate protection’ – this includes meeting ‘cross-economy greenhouse gas emission reduction targets’.

Aviation

• Majority owned and controlled UK airlines as at the end of December 2020 may continue to operate air transport services between the UK and the EU.  Majority owned and controlled EU/EEA/EFTA airlines may continue to operate air transport services between the UK and the EU.
• There is a framework for future ‘cooperation on aviation safety’.  These will be detailed in a series of Annexes on such matters as airworthiness certification.

Road Transport

• Operators will continue to be able ‘to move goods to, from and through each other’s territories with no permit requirements, and make additional movements within each other’s territories’.
• Standards apply to international journeys – including ‘restrictions on driver hours, requirements about professional qualifications and tachographs and vehicle weight and dimension limits’.
• Passenger transport operators continue to be covered by the multilateral ‘Interbus Agreement’ – and will be able to run ‘occasional services to, from and through each other’s territories’.
• Passenger transport services on the island of Ireland will be able to pick up and set down passengers in both Ireland and Northern Ireland – enabling ‘cross-border services to continue with no restrictions’.

The following Parts of the Agreement will be dealt with in our next post:

Part 2 – Trade

Social Security Coordination and Visas for Short-term Visits;

Fisheries

Part 3 – Law Enforcement and Judicial Cooperation in Criminal Matters

Part 4 – Cooperation

Cooperation on cybercrime;

Cooperation on Health

Part 5 – UK participation in EU programmes such as Space exploration and Nuclear Energy

Part 6 – Disputes Resolution

Part 7 – Territorial Scope of the Agreement

Great Britain, Northern Ireland, Gibraltar, and the 50 Worldwide ‘UK Overseas Territories and Crown Dependencies’

Contact me by Email or LinkedIn for further detailed insight or potential mitigation action.

The deal negotiated by the Government represents a humiliating defeat for the UK by the “Giant” that is, according to President Von der Leyen, the European Union.

In a significant defeat and ‘U-turn’ the UK Government has concluded a bad deal to end the Brexit transition period in 7 days’ time.  Worse than Norway, worse than Switzerland and Lichtenstein, worse than Turkey – and worse than Canada as far as trade in goods is concerned.

From the perspective of European Commission President, Ursula Von der Leyen: “We have finally found an agreement.  It was a long and winding road, but we have got a good deal to show for it.”  A good deal for Europe.

From the other side, here is the UK Government’s statement in full:

“Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal.”

“We have taken back control of our money, borders, laws, trade and our fishing waters

“The deal is fantastic news for families and businesses in every part of the UK.

“We have signed the first free trade agreement based on zero tariffs and zero quotas that has ever been achieved with the EU.

“The deal is the biggest bilateral trade deal signed by either side, covering trade worth £668bn in 2019.

“The deal also guarantees that we are no longer in the lunar pull of the EU, we are not bound by EU rules, there is no role for the European Court of Justice and all of our key red lines about returning sovereignty have been achieved.

“It means that we will have full political and economic independence on 1st January 2021.”

“A points-based immigration system will put us in full control of who enters the UK and free movement will end.

“We have delivered this great deal for the entire United Kingdom in record time, and under extremely challenging conditions, which protects the integrity of our internal market and Northern Ireland’s place within it.

“We have got Brexit done and we can now take full advantage of the fantastic opportunities available to us as an independent trading nation, striking trade deals with other partners around the world.”

So much for the rhetoric.  Reality will prove whether the wide-eyed optimists in the Government are right.

One saving grace is that it keeps open some channels of communications and cooperation that would, indeed, have been lost in ‘no-deal’ – such as exchange of security and policing data.

Assuming that the queue of 6,000 or more trucks currently stacked in Kent and waiting to cross into Europe can be cleared – those crossing the border from 1 January will face major operational and reporting changes.  If there are any that delayed their trip to Europe – or if they end up at 23:00 GMT on 31 December stuck in a queue  system this side of the Channel – they will need to submit clearance documentation in addition to a ‘negative’ Covid test.  There is no provision in HMRC’s new regulations to avoid a fixed penalties of £300 – payable on the spot by the driver- for emergencies such as reduced capacity and increased handling times presently being experienced due to the pandemic.

In any event, HMRC has estimated the extra form filling and compliance will cost British business over £7bn – and an equal amount for those moving goods from Europe.  An additional 250,000 customs declarations will be needed in 2021.

At least a ‘zero tariff’ end to the transition avoids immediate imposition of duties up to 40% on goods moving between UK and Europe.  However, the decision of ‘if and when’ to apply tariffs in the future is for the EU to make alone.  The bloc retains the right to impose tariffs should they feel that the UK is in any way subsidising its businesses to the disadvantage of EU competitors – in other words, tilting ‘the level playing field’.

Northern Ireland, meanwhile, is confirmed as getting a new ‘customs’ border between the Province and the remainder of Great Britain.  The Withdrawal Agreement and Protocol (much of which was dedicated to maintaining a single borderless island of Ireland) agreed between Theresa May’s government and the EU stands.  The freedom for unfettered movement of people and goods between south and north Ireland has resulted in a new set of reporting and certification requirements between Ulster and Great Britain.

A week before the UK leaves the EU ‘single market’ and the EU ‘customs union’, it is still not clear if there will be a new UK-EU agreement at 23:00 GMT on 31 December.

There are thousands of changes whether or not there is a ‘deal’.  A Parliamentary briefing, published yesterday, sets out key changes and UK and EU preparations.

It builds on Prime Minister, Boris Johnson’s statement that there is a “strong possibility” that the UK and EU would not reach an agreement – and that it is time for the public and businesses to prepare for this scenario on 1 January 2021.

Without an agreement in place, UK-EU trade will revert to World Trade Organization (WTO) rules and current co-operation arrangements in several areas will cease.

Leaving the single market and the customs union

The UK is due to leave the single market and customs union at 23:00 GMT on 31 December 2020. This will be the case both under the UK Government’s stated objective of a free trade agreement with the EU, or if no agreement is reached.

The European Commission emphasises, “there will be broad and far-reaching consequences for public administrations, businesses and citizens as of 1 January 2021 – regardless of the outcome of negotiations.”

EU chief negotiator, Michel Barnier, explained that even with a “best-in-class” free trade agreement as long as the UK is outside the ‘single market’ and customs union, there will be “two separate markets”. He highlighted examples of things that would change, including the need for customs checks and rules of origin (to determine where a product or its components were made).  In addition, UK goods entering the EU would be subject to regulatory checks to ensure they comply with EU product standards.   UK financial services suppliers would also no longer have the passporting rights they previously had.

Cabinet Office Minister, Michael Gove, told the House of Commons that “leaving the single market and customs union will herald changes, and significant opportunities, for which we all need to prepare—Government, business and individual citizens.”

The end of free movement

Free movement for UK citizens travelling to the EU – or living and working in the EU – ends on 31 December, as it will for EU citizens in the UK.

UK citizens will not need visas to enter the EU for short trips.  The EU has said that UK citizens coming to most EU states for a short stay – 90 days cumulatively in any 180 day period – will be allowed visa-free travel.  For longer stays, Member States’ own rules are likely to apply.  The UK Government has said that EU citizens visiting the UK will be able to do so without visas for six-month periods.

Government guidance warns UK citizens they will need six months on their passports when travelling to the EU – and may no longer be able to use the border control lanes for EU citizens.  They may need additional documentation for other reasons: the EHIC health card providing cover for visits to the EU may no longer be valid, and an international driving permit may be needed for driving in the EU.

The existing pet passports scheme are no longer be valid.  Pet owners will need to get the appropriate vaccinations and certificate for them in advance of travel.

Replacing international agreements

The EU’s wide range of international agreements cease to apply to the UK at the end of the transition period.  The Government is trying to negotiate new or replacement trade agreements and 23 of 58 have been ‘rolled over’ on the same terms.  The Government has not provided a recent update on progress on these agreements.

UK preparations for end of transition

The Government will introduce import controls in three phases: in January, April and July 2021.  There are 80 new combinations of reporting to complete, depending on the nature of the goods.  There are dozens of new or upgraded IT systems to come on line – and thousands of new civil service posts in Border Control, veterinary and plant certification, and HMRC that take effect on 1 January.

Gove announced a new border operating model in October – and a public information campaign to help businesses and individuals to prepare for the seismic changes.

In a final review of preparations in November, the Government watchdog – the National Audit Office reported that the UK border and systems will not be for the change.  This, potentially, will lead to even more severe issues than have been witnessed this week resulting from the Covid-19 border closures – and no legal route to overcome them.

EU preparations for end of transition

The European Commission published a communication on “readiness at the end of the transition period” highlighting “changes happening in any scenario.”  Sectors covered included trade in goods and services, financial services, transport, recognition of professional qualifications, data protection, intellectual property, and the EU international agreements which no longer apply to the UK.  The Commission has published 89 “readiness notices” across a wide range of policy sectors and technical issues.  These advise administrations, businesses and citizens on what they have to do to prepare for the changes at the end of the year.

The bottom line is that none of these notices is new for EU businesses – they exist already for non-EU – or ‘third countries’.  The UK is simply added to this list on 1 January.

EU ‘no deal’ contingency plans

On 10 December, the European Commission published some temporary ‘no-deal’ mitigation  measures:

• Basic air connectivity: to ensure the provision of certain air services between the UK and the EU for 6 months, provided the UK ensures the same.
• Aviation safety: to ensure various safety certificates for products can continue to be used in EU aircraft without disruption.
• Basic road connectivity: to allow for continuing road freight, and road passenger transport for 6 months, provided the UK assures the same to EU hauliers. This would be subject to the application by the UK of fair competition, social and technical rules equivalent to those of the EU.
• Fisheries: providing a legal framework to agree reciprocal UK-EU fisheries access for 2021.

The Commission emphasised that contingency measures could not provide continuity or replicate the benefits of EU membership or of the transition period.

Gove said the UK would “look closely at the EU no-deal contingency plans” – but whilst aviation and road transport measures sounded positive, fisheries was “of greater contention“.

Background

Under the Withdrawal Agreement (WA) the UK and EU could have agreed an extension to this period – but a decision on this had to be made before 1 July 2020.   The idea of a new treaty providing for a short “standstill period”, which would enable some or all of the current arrangements to continue for a time limited period, has been revived by some political and business commentators.  This is viewed as a possible way of overcoming the difficulties presented by the very short period left before the end of December for both sides to conclude and ratify the deal.  Such an arrangement might be politically difficult to agree for both sides, and legally difficult for the EU.   There is no indication from the UK or EU that this has being seriously considered.

The European Parliament’s deadline for organising a consent vote on a UK-EU deal passed on 20 December.

On 21 December there were renewed calls for an extension of the transition, but the UK Government rejected the idea.

References

http://europartnership.com/brexit-transition-cross-party-end-of-term-report-critical-of-governments-lack-of-preparedness/

http://europartnership.com/post-brexit-products-sold-in-britain-need-a-new-uk-kitemark-as-ce-will-no-longer-be-recognised/

http://europartnership.com/post-brexit-uks-finance-industry-loses-out-as-chancellor-yields-to-eu-with-nothing-in-return/

http://europartnership.com/post-brexit-national-security-and-policing-concerns-raised-by-crime-fighting-agencies-to-parliament/

On Thursday, Parliament ended its last session before Great Britain leaves the EU ‘Single Market’ and ‘Customs Union’ at 23:00 GMT on 31 December.

The cross-party Parliamentary ‘Committee on the Future Relationship with the European Union’ completed its assessment of UK preparedness.  Published this morning, 19 December – and with 12 days until the end of the transition period – it unanimously paints a stark warning of: “a potentially challenging start to 2021 as businesses, traders and citizens adjust to life outside the EU.”

Committee chair, Hilary Benn MP, said:  “With just seven working days until the end of the transition period, significant concerns remain.  The Government still cannot provide businesses, traders and citizens with certainty about what will happen in all the areas affected by the negotiations, but as we leave the rules of the Single Market and the Customs Union, firms exporting to the EU will face more red tape, unfamiliar forms and extra costs from 1 January whatever happens.

Coinciding with the toughest trading conditions since records began – and with businesses focussed on surviving Covid-19:  Benn added: “At this late stage, the Government must be ready to implement contingency plans where necessary to mitigate the effects of any disruption.  Failure to do so would mean the worst possible start to the new year for many people and businesses who are already experiencing the toughest of times.”

The report’s key findings include:

• “Given the overall state of preparedness, the Government must have robust contingency plans ready for 1 January.”  The report acknowledges the complexities of developing a brand-new Border Operating Model.  However, “key decisions have been taken very late – including the announcement of the outcome of bids to the Port Infrastructure Fund and the location of inland facilities to serve the ports of Holyhead and Cairnryan.”  This has affected overall readiness as the end of transition approaches.

It is critical that the Government has robust contingency plans in place to deal with any disruption from 1 January.

• “Late delivery of IT leaves little time for users to adapt.”  The report notes that whilst the Government “appears to be on track to make the necessary changes to its own IT systems by 1 January – such as the HMRC’s Customs Declaration Service,” they are being rolled out with very little time remaining.  Many businesses and traders will be unable to update their own systems that now need to integrate with the HMRC.  Late delivery means that staff cannot be fully trained on the new software across the UK and in countries they are exporting to or importing from.

Training is vital if new arrangements are to function smoothly.  We have reported on the recent NAO report which found that systems, processes and resources have not been fully completed and tested.  The Government should therefore have a plan to swiftly address any problems that arise.

• “The UK and EU should reciprocate on no-deal measures and phasing-in of goods controls.”   The Committee welcomed the European Commission’s ‘no-deal contingency measures’ for road freight and road passenger transport, published on 10 December, and recommends that the Government ensures they can be enacted, if required, by reciprocating in full.  We note that the European Parliament went further in recommending additional ‘grace’ periods to mitigate disruptions in their final session of the year on 18 December.

The report says that the Government decision to phase in controls on goods arriving from the EU over the first six months of 2021 was the right one.  But it warns that July is not far off and urges that all necessary systems and infrastructure are put in place, and businesses made aware of what changes they need to make, as soon as possible.  The report also calls on the EU to reciprocate the UK’s decision to phase in controls.

• “Trained customs personnel must be in post, and business engagement ramped up.”  As well as IT systems and physical infrastructure, new trading arrangements will require trained customs agents if they are to run smoothly.  Businesses and traders will be reliant on these intermediaries for assistance with paperwork; and ensuring they comply with new requirements – for example on plant and animal health, and food and feed safety.  If the right people are not in the right place at the right time, businesses and traders will face an uphill task.  “The Government must therefore be ready to address any personnel shortages.”

The report welcomed the Government’s efforts to engage with businesses about the changes that are coming – but warned that with so little time remaining, continuing uncertainty about the future arrangements, unclear guidance and the additional complexities created by Covid-19 restrictions, businesses have been constrained in their preparations.

• “The UK needs to ensure its border is safe and secure.”  The report says that whilst the precise nature of future co-operation with the EU on law enforcement remains unclear, “the UK’s safety and security must not be compromised.”  While UK law enforcement agencies are working hard to develop alternatives to EU databases – such as the Schengen Information System II – the fall-back systems for information sharing are likely to be slower and more cumbersome.

This was highlighted in Thursday’s Home Office Affairs Committee session into “UK-EU security co-operation”.  The police and crime fighting agencies will be disadvantaged once excluded from the shared EU intelligence.

The Brexit Committee noted that: “we still do not know if the UK will receive a data adequacy decision to enable data transfers from the EU to the UK, and a replacement for the European Arrest Warrant is unlikely to be in place by 1 January.”  They call on the Government to “closely monitor the speed and effectiveness of its fall-back systems.”  They added that the Government should explore all available opportunities for countering cross-border crime in Northern Ireland, including bilateral arrangements, that build on current co-operation between the Police Service of Northern Ireland and An Garda Siochána.

• “The Ireland/Northern Ireland Protocol must remain a priority.”  The Brexit Committee welcomed the agreement between the UK and EU about how the Protocol will work in practice.  However, they noted the “likely negative consequences of the agreement being reached so late for citizens and businesses.” They warn that – even with an agreement – the early months of 2021 are “likely to be difficult” with some problems deferred rather than solved.  Northern Irish businesses and civil servants face challenges, and – if these are to be overcome – “all parties must show flexibility, creativity, and generosity of spirit.”

To ensure that the Protocol is applied consistently – and to avoid future disputes – HMRC should work closely with the Irish Revenue Commissioners and other relevant authorities.  The Government should also – together with its devolved counterparts – “put contingencies in place to minimise traffic disruption near affected ports.”

Comment

We can only agree with Mr Benn when he says that: “the government has left it very, very, late.”

References

Preparing for the end of the Transition Period – Committee on the Future Relationship with the European Union – House of Commons (parliament.uk)

Committees – UK Parliament

 

Updated Tuesday 8 December 2020

Boris Johnson and European Commission President, Ursula von der Leyen, may have “welcomed the fact that progress has been achieved in many areas” in their weekend conference call.

Nevertheless, significant differences remain on three critical issues: ‘a level playing field’ when it comes to state aid; ‘governance’ and who will arbitrate future disputes between the EU and UK; and access to UK waters for EU fishing fleets.

Both sides acknowledged in a joint press statement that if these issues are not resolved, the UK is heading for the ‘no-deal’ scenario at the end of the Brexit ‘transition period’.

We dealt with ‘state aid’ in a previous post – highlighting the hardening of the UK ‘red line’ in recent weeks.  It is difficult to see how, having widened the gulf between the parties, the UK could compromise and accept the EU position without loss of face.

Johnson and von der Leyen spoke again yesterday evening” [7 December] – having instructed their chief negotiators to reconvene in Brussels.  In the hour immediately before the call the House of Commons voted to re-insert the controversial ‘Treaty breaking’ clauses in the ‘Internal Market Bill’ that had been removed last week by the House of Lords in an overwhelming cross-party vote.

Whist publicly stating that they want an agreement, the UK Government last week added a second piece of legislation that is likely to further increase the likelihood that one of one of the 27 EU member states using its veto – even if negotiators can find common ground, four-and-a-half years after the vote leave referendum.  One veto from a any member state, or the European Parliament, or the European Council, will be enough to stop a trade deal in its tracks – and Great Britain will leave the EU single market and customs with ‘no-deal’ on 31 December.

On Thursday 3 December, Jacob Rees-Mogg MP, Leader of the House of Commons, announced that the Government would be introducing the ‘Taxation (Post-Transition Period) Bill’.  To date, the Bill has not been published – yet is to be fast-tracked to a ‘second reading’ on 9 December 2020.

The Internal Market Bill has received widespread criticism around the across European and around the World.  President-elect Joe Biden has said that if passed, it will count against the UK in any future discussions about a trade agreement.  The House of Lords have formally ‘expressed regret’ that the part of the Bill which concerns the implementation of the Northern Ireland Protocol would: “undermine the rule of law and damage the reputation of the United Kingdom” as Parliament – “which is responsible for making the law and expecting people to obey the laws it makes – would be knowingly granting power to the Executive to break the law.”

The House of Lords resolved to remove clauses that would enable a breach of international law.  They also resolved to remove clauses “intended to give the UK Government the power to provide financial assistance to any part of the United Kingdom for a wide range of purposes.”  The main arguments against granting those powers were the effects on the devolution – with the potential to undermine the stability of the Union that is the United Kingdom. The cross-party majority was 433 to 165.

The Government has now reinstated the clauses.

In a related move, Michael Gove MP, Chancellor of the Duchy of Lancaster indicated in October that in the event of a no-deal end to Brexit transition, the Government would need to legislate “measures relating to tariffs on movements of goods between Great Britain and Northern Ireland” in the form of a ‘Finance Bill’.

In a highly unusual fast-track move, the provisional date has been set for Wednesday 9 December for Parliament to complete the ‘second reading’ and the ‘committee stage’ of the ‘Taxation (Post-Transition Period) Bill’.  MPs will have their first sight of the contents of the Bill on Tuesday 8 December as it is published on the Parliament website.  The Bill has the potential to further alienate all those who do not want the UK to break international law and treaty commitments to the Good Friday Agreement.

With EU and UK negotiations on a knife-edge and against the backdrop of either a very ‘thin’ deal, or no-deal, Peter Mandelson – former Cabinet Minister and EU Commissioner – has published an article in the Guardian looking at how the UK – having spent nearly half a century reshaping itself round the opportunities offered by European economic integration – now has to scope out the next chapter in its national story.

“In determining that Great Britain should not only leave the EU, but additionally languish outside Europe’s giant single market and its frictionless customs union, Boris Johnson is putting Britain at a massive and permanent disadvantage in relation to its biggest export market.  All the new benefits from every global trade deal that we could ever aspire to will not begin to equal the size of our present European trade.  This is the price we will pay for the triumph of hard-line Tory Brexiters over those with a stronger sense of national interest in their party.”

He argues that there were many other priorities into which we could have invested energy much more gainfully in order to build a “21st-century Britain – including a recasting of work and human rights, and updating the welfare system.

I’d like to add: leading the move to create a sustainable planet for future generations; levelling some of the global inequalities that presently create friction between factions and nations; and harnessing the burgeoning technological advances in artificial intelligence, communications, robotics, genetics, medicine and agriculture – for the greater good of mankind.

References

Joint Statement by EC President and PM Johnson (europa.eu)

Post Brexit: ‘State Aid’ remains a sticking point for EU-UK negotiations as UK ‘hardens’ its ‘red-line’

UK Internal Market Bill: House of Commons Library

Taxation (Post-Transition Period) Bill: House of Commons Library

Photo:  EP Research