Wednesday 22 January 2020

Reality kicks in

If you look behind the Royal dominated front pages, you will see there are some stories regarding the potential trade deal that the UK will have with the EU and that the EU is making life difficult.

Like this is some kind of surprise.

Once the 31st passes and the UK leaves the EU, then it will be each side for itself, size and leverage will be everything.

And experience.

The biggest leverage, as it was with the A50 process, is time. And Johnson has given the EU added leverage by saying the transition period will not be extended, so that all has to be agreed and ratified by 31st December 2020. But with the slow ratification process, this will have to be completed by the end of June. The end of June also marks the point at which the UK has to ask for an extension, if it doesn't, there will be no averting from the cliff-edge.

Of course Johnson could do what he did at the end of the A50 process and just capitulate on EU demands and paint it as a victory and a "good deal" when it is anything but, but it would need to be ratified in Parliament, as well as the EU27 and some regional assembles too.

This is not a given, as the Canadian FTA was almost blocked by an area of Belgium. With that FTA time wasn't an issue, with Brexit it will be, if the clock ticks down to the New Year, there is no FTA.

And remember, any old fool can negotiate an FTA, but it takes skill and experience to get a good FTA for UK, and we have little or no experience in trade negotiations, and it seems will have to conduct ones with both the EU and US at the same time, with the US already complaining that the UK is dragging its feet and not saying what we want with a trade deal with the US.

As soon as Brexit is written down, it falls apart as Brexiteers cannot agree on what Brexit means, other than it meaning Brexit, should be done.

It seems that Brexit Party MEPs are discovering that after the 31st January, the UK will have no representation in the EU, and are shocked. Well, as we told them, Brexit means Brexit, and you won, get over it.

But reality bites.

Thing with fishing is that it makes up less than 1% of UK trade, while services makes up something like 80%, so banging on and on about something that may be symbolic but has little real value whilst ignoring the secotor that supports the UK economy might be considered foolish. But then details were never Brexiteers strong points.

On top of Brexit, the Civil Service will have to cope with a massive reorganisation as demanded by Cummings. Doing both is going to mean something will break.

But Cummings is a brain on legs, so I'm sure that's fine.

Former Australian PM Malcolm Turnbull stated on BBC's Newsnight program last night, that Austalia will always be friends with the UK and supported the Brexit result, but it and the rest of the Commonwealth cannot be a substitute for EU trade, the numbers just don't add up.

Meanwhile the NHS is engaging in a massive recruitment drive in India, to make up for the shortfall in EU citizens who will be leaving the UK. Yes, you read that right. Not sure if that was the aim of Brexit, not something I saw written on the side of a bus.

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