Brexit – update on latest developments

29 Apr 2020

Given the current and entirely understandable focus upon the COVID-19 pandemic, members would be forgiven for thinking that Brexit as a process, has ground to a holt.  But No, it continues unabated albeit at a much reduced pace within UK Government due to the
reallocation of resources.

At a recent meeting between the negotiation teams, the EU set out a gulf between it and the UK over what has been called the “economic Brexit”

Michel Barnier, the chief EU negotiator on Brexit, set out concerns over negotiations of what he calls “economic Brexit” at the end of this year, as opposed to “political Brexit”, which took place in January.

He says there is a need to make progress in the two rounds of negotiations left, in the weeks of May 11 and June 1.   “We need to move beyond clarifications and put more political dynamism into proposals aimed at building compromises.”

On March 18, the EU “shared with the UK a full draft of legal tests for an ambitious economic and security partnership” for negotiation:

https://ec.europa.eu/commission/presscorner/detail/en/IP_20_447

By contrast, the UK has sent “text proposals on some areas” which it has asked to remain confidential.

Barnier said his mandate from the EU’s member states is to negotiate issues in parallel, including the in most difficult areas.  The UK has refused to negotiate seriously on a number of fundamental issues contained in the Political Declaration agreed with Boris Johnson.  He highlighted several areas:

  • Level playing field – no significant engagement from the UK, which said the two sides were too far apart to reach agreement
  • Overall governance of the future partnership.  The EU proposes a single agreement, the UK “insists” on separate agreements with their own governance, which will involve duplication, inefficiency and “a lack of transparency”
  • Police and judicial co-operation in criminal matters, and
  • Fisheries.  Any future economic parentship must include a “balanced, sustainable and long-term solution on fisheries.  That should be crystal clear to the UK”
  • Northern Ireland.  “We need clear evidence that the UK is advancing with the introduction of agreed customs procedures for good entering Northern Ireland from Great Britain”, together with all regulatory checks.

“Serious difficulties lie ahead” Barnier said.

Sources:
https://ec.europa.eu/commission/presscorner/detail/en/statement_20_739https://ec.europa.eu/commission/presscorner/detail/en/statement_20_739

Meanwhile, the strains being imposed on the EU by the coronavirus continue to mount, increasing the uncertainty around Brexit and re-inforcing the positions of those in favour of extending the transition/implementation period and those stressing the importance of leaving as planned.  The government has re-stated its position that we complete the implementation at the end of this year.

In a recent informal discussion with Government officials I was informed that it would be a risky strategy for business to assume that an extension to the transition period will be agreed.  As you might imagine, I strongly agree.

As to what business should be doing, I am advised that an update from HMG is unlikely before late May, or well into June.  The guidance on gov.uk as it stands now is arguably limited to what some pundits have called ‘the point of embarrassment’:

https://www.gov.uk/transition

BFPA members may find this piece in the Huffington Post quite informative albeit it is subjective. It tries to shed light upon why the PM won’t extend.  It talks about state aid rules getting in the way, increased budget demands arising from the crisis, and a raft of other regulatory obstacles to what the government will want to do:

https://www.msn.com/en-gb/news/uknews/despite-coronavirus-no10-wont-extend-the-brexit-transition-heres-why/ar-BB13gyNy?ocid=spartanntp

No doubt as the current pandemic subsides higher profile reporting on Brexit may return – but then I suspect that most BFPA members may have lost interest!

Chris Buxton – BFPA CEO

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