Posts Tagged ‘negotiations’

Regular readers will know (a) that I think Brexit is a really, really bad idea, and (b) I have blogged about why often, or waffled about it on Facebook, or whatever.

But after the shambles in the UK Parliament yesterday (Australian time) I thought this BBC graphic might be useful for anyone trying to understand what on earth happens (or can happen) now.

Brexit next steps

The UK Parliament yesterday was a seething mass of regret, ambition, determination and anger.

The problem, as one Brexiteer friend complained to me this morning is that Prime Minister Theresa May was never a Leaver, and therefore the entire negotiation has been bumbled along incompetently in order to leave the British sort of still in the EU and sort of out of it. As Aussies would say, paraphrasing a famous old advertising slogan: “It’s the Brexit you’re having when you’re not having a Brexit.”

Theresa May under pressure in the UK parliament yesterday.

There’s only one problem with this analysis, which is that the current situation could well cost Theresa May her job, and politicians don’t generally engineer a situation which seems tailor-made to see them sacked.

If May wanted a Brexit deal that left the situation essentially a status quo, one suspects she would have dressed it up better to mollify the right-wing anti-European segment of her party, rather than enrage it. (Which presumes that they were capable of being mollified, which is by no means certain.) But when the Minister in charge of the deal enunciated yesterday, as Dominic Raab did, that he’s resigning because he can’t support the deal he himself negotiated, then we are in uncharted political territory.

It is likely that the Brexiteers in May’s party (by no means a majority, but incredibly determined and vocal) were simply waiting for this moment to topple her in favour of one of their own. They won’t get one of their own, but they will succeed in making their party look ungovernable and fractured. Why they would want to do that you will have to ask them.

Nevertheless, putting a deal to Parliament which seems to please no-one apart from a small core of May loyalists seems a failure of political strategy. Doing something to unite the right wing of the Tories, the increasingly marginalised Lib Dems, the much more significant Scots Nats, large swathes of Labour (if not its increasingly unimpressive leader) and even the DUP (nominally part of the government, in effect) is quite a feat.

It may simply be that May has simply run out of time, and had to do something. She may, indeed, prefer to go down fighting on the principle that the people voted for Brexit, and she’s going to deliver the Brexit she can, or die trying. Certainly her performance in the Commons – against a barrage of criticism unlike anything seen since Chamberlain was removed in 1940 – was bullish, determined and courageous.

The problem, of course, is that in terms of what is right for Britain, this is a disaster.

If the deal cannot survive the Commons, then a “No Deal, Crash Out” outcome becomes very likely. Passionate opponents of the EU will say (are saying) “Well, so what? We survived two World Wars, we can manage a bit of trade disruption!” The problem is that this is mere wishful thinking – “magic thinking” – and terrifyingly naive.

The UK currently trades with the EU under rules set down by the EU customs union, which is an agreement that goods can be traded freely, and the single market, which sets a common regulatory structure and allows the free movement of goods, capital, people and services.

Leaving these two arrangements overnight would, first, mean the UK would trade with the EU on the basis of rules set down by the World Trade Organisation (WTO). This would end the free movement of goods between the UK and the EU, and mean that tariffs, or special import taxes, would apply on some products. Secondly, customs checks would also be immediately needed between countries where they aren’t currently. Chaos.

Aviation is an example of another key area where problems will arise. At the moment the UK aircraft industry operates under EU regulation both within the EU and for flights to other countries such as the US. If the UK leaves suddenly next March, then some new regulatory arrangement would be needed. This could be worked out in advance, or could ground flights between the UK and EU countries for a period if not. On some scenarios, flights might halt for a few days before things are worked out – but much will depend on what the mood is between the two sides at the time. Any any such disruption would cause untold problems. Similarly in pharmaceuticals, the UK is part of the EU regulatory regime and questions would emerge over pharma exports from the UK,and vice versa. Stockpiling of vital drugs in both the UK and EU countries is already at the planning stage as a fallback. The UK Health Secretary reportedly told the Prime Minister and her cabinet that he ‘could not guarantee that people would not die’ if no Brexit deal was agreed. Matt Hancock is reported to have said that lives will be at risk due to a shortage of medicine in a no deal scenario during the stormy No 10 five-hour meeting on Wednesday.

Britain is also highly dependent on imported food. By value, imports make up more than 90% of the fruit and vegetables consumed in the UK and half of the meat. A “hard” Brexit is expected to suddenly and substantially increase trade costs and make food imports more expensive, something that could lead to changes in diets and dietary risk factors that influence health. In fact, Brexit could lead to up to 5,600 diet-related deaths per year by 2027, additional healthcare expenditure of £600m, and increase the GDP losses of Brexit by up to 50% according to estimates Florian Freund and Marco Springmann published in a new Oxford Martin School Working Paper.

The stupid thing about all this is that it is only Theresa May’s dogged determination (although disgracefully supported by the grinning idiot Jeremy Corbyn) that “Brexit means Brexit” and therefore there is nothing for it but to “keep on buggering on” in Churchill’s famous aphorism, that is the real problem here. She is full of Thatcher-like passion that “there is no alternative”. But there is an alternative, which is commonsense.

During the Brexit process, and increasingly as the negotiations have become mired in the very complexity that many of us predicted from day 1, the British people have gradually woken up to the fact that they don’t really like the look of what they voted for.

The original referendum was advisory only, and even if we elevate that to the level of Holy Writ as some have (with no basis in law), arguing that it places a moral obligation on the Government to deliver Brexit (this is May’s oft-stated position), this does not allow for the very obvious fact that people change their mind.

When a Government is elected, it undoubtedly has a mandate (of some strength or other, depending on the details of a result) but that Government is elected in sure and certain knowledge that it can be removed if it loses the confidence of the House, or a subsequent election. So why should the result of a referendum be somehow locked eternally in stone, when no other Governmental process is?

The Government has struggled hard to deliver Brexit. And failed. It was always a quixotic and incredibly complex goal.

The terms of the deal May has now put on the table actually leaves Britain economically worse off than staying in the EU, but with none of the advantages that Brexit was supposed to deliver. Far from “taking back control”, it actually cedes further control to the bureaucrats. Crashing out without a deal would be political and economic insanity, although it would be the preferred option for the Brexit fanatics. But in reality they have never truly been in a majority, either in the Conservative Party, or the country as a whole.

Opinion polls now suggest that there is a solid majority of the British electorate who have changed their minds on Brexit as the details have become clear. An even larger majority want the chance to vote on the terms of the deal in a so-called “People’s Vote”. May stubbornly refuses.

It is simple ornery-ness to deny them that chance, especially as it might well produce a result – staying in the EU – which would instantly resolve the current impasse. Such a result would not, of course, prevent the UK seeking to continue to renegotiate any of the terms of membership which it finds especially onerous.

Sadly, such commonsense is in short supply at the moment. Götterdämmerung works in Wagner operas. It’s no way to run a country.

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