Brexit: Theresa May is now looking like another disaster

From Missy:


As reported yesterday Theresa May did a quick trip to Strasbourg to meet with Juncker (other EU Presidents were also in attendance, along with their Brexit team). At the end of the meeting an agreement was made, and this came out in two statements – one a joint statement, and the second a unilateral statement by May.

Theresa May’s statement outlined what the UK’s understanding of the backstop was, that it is temporary and not a permanent solution. May’s statement also says that if the EU fails to come to an agreement to remove the backstop, then the UK would consider that the backstop had become de facto permanent. This means the UK will have the right to take the EU to the joint arbitration mechanism, it does not mean the UK has a unilateral exit mechanism, nor does it provide a fixed time limit – the two things the House of Commons asked May to try and get if she could not get the backstop removed.

The joint instrument is an 18 point statement which clarifies the commitments both sides make to each other, without changing the Withdrawal Agreement. this interprets how the EU and UK would handle the backstop if it ever came into force. This agreement contains legally binding assurances as opposed to being part of the Withdrawal Agreement, and falls short of what some want.

This morning the Brexit supporting MPs were cautious about the agreements reached last night, all saying they wanted time to read, digest, and analyse the agreement, some stating they would wait for the Attorney General’s legal advice on it before making a decision, and many in the ERG saying they will defer a decision until they had spoken to the DUP.

The AG’s advice was published at around 1130 this morning, and states that the agreement does not change anything as the UK could still find itself trapped in the backstop with no way out. The DUP and Brexiteers have rejected the agreement based on the AG’s advice.

What was looking hopeful this morning for Theresa May is now looking like another disaster for her in the Commons, with some MPs saying she cannot stay in position if she loses again and others saying she needs to call a General Election when she loses the vote. The vote is set down for 7.00pm tonight.


Brexit in peril, May facing defeat

It doesn’t seem to really be news that Theresa May faces defeat over Brexit plans.

Reuters: ‘Brexit in peril’ as PM May faces heavy defeat

Brexit could be reversed if lawmakers reject the government’s exit deal, British foreign minister Jeremy Hunt said on Sunday after two major eurosceptic factions in parliament warned that Prime Minister Theresa May was facing a heavy defeat.

Just 19 days before the United Kingdom is due to leave the EU on March 29, May is scrambling – so far unsuccessfully – to secure last-minute changes to an EU exit treaty before parliament votes on Tuesday on whether to approve the deal.

If she fails, lawmakers are expected to force May to seek a delay to Brexit which some say could see the 2016 decision to leave the bloc reversed. Others argue that, without a delay, Britain faces an economic shock if it leaves without a deal.

“We have an opportunity now to leave on March 29 or shortly thereafter and it’s important we grasp that opportunity because there is wind in the sails of people trying to stop Brexit,” Hunt told the BBC. “We are in very perilous waters.”

Nigel Dodds, deputy leader of the Democratic Unionist Party (DUP) which props up May’s minority government, and Steve Baker, a leading figure in the large eurosceptic faction of her Conservative party, warned “the political situation is grim”.

“An unchanged withdrawal agreement will be defeated firmly by a sizeable proportion of Conservatives and the DUP if it is again presented to the Commons,” they wrote in the Sunday Telegraph.

The Sunday Times said May was battling to save her job as aides were considering persuading her to offer to resign in a bid to get the deal approved. The newspaper also said cabinet ministers had spoken about whether to insist she goes as early as this week.

Amid the political chaos, many company chiefs are aghast at London’s handling of Brexit and say it has already damaged Britain’s reputation as Europe’s pre-eminent destination for foreign investment.

The chances of this turning out well for May or the UK looks slim. It’s a mess with no easy or obvious solutions.

 

May-Merkel agreement on Brexit

From Missy on a possible May-Merkel deal on Brexit – if soi thnis could be a breakthrough for Theresa May:


This is a blog post from the Bruges Group, a eurosceptic think tank that was set up by Conservative MPs / Members in 1989, but now has cross party support. In saying that they generally have a good reputation for well researched articles, and some of the information in this blog post does tally loosely with many rumours circulating at the time of the Chequers deal.

http://www.brugesgroup.com/blog/duplicitous-leaders

“There is no doubt about the veracity of this account since documents have been seen.

On Monday July 9th 2018, several leading French, German and Dutch senior managers were called by EU officials to an urgent meeting.

The meeting was said to be private and those present were informed that Prime Minister May and Chancellor Merkel had reached an Agreement over Brexit. Knowledge of this was attained from the actual transcript of the meeting between May and Merkel.

1) The Agreement was couched in a way to ‘appease’ the Brexit voters.

2) The Agreement would enable May to get rid of those people in her party who were against progress and unity in the EU.

3) Both Merkel and May agreed that the likely course of events would be that UK would re-join the EU in full at some time after the next general election.

4) May agreed to keep as many EU laws and institutions as she could despite the current groundswell of ‘anti-EU hysteria’ in Britain (May’s own words, apparently.)

5) Merkel and May agreed that the only realistic future for the UK was within the EU.

The original Agreement draft was completed in May 2018 in Berlin and then sent to the UK Government Cabinet Office marked ‘Secret’.

NB This Agreement draft was authored in the German Chancellor’s private office.

The Cabinet returned the Agreement draft with suggestions, and there was some to-ing and fro-ing during June 5th 2018.

Private calls between the Prime Minister and Chancellor were made.

The Agreement’s final draft came out late in June 2018. The German Chancellor told Prime Minister May that this was a deal she would support, though there would need to be some more small concessions by the UK to keep the EU happy.

The Chancellor and Prime Minister met in Germany. Merkel had this meeting recorded as a ‘private meeting’ though the Prime Minister was probably unaware of that.

The Chancellor had the transcript of that meeting circulated secretly to EU and key German embassies.

Conclusions

Documents make it quite clear that Prime Minister May was negotiating with Germany, not the EU.

The transcript also makes it clear that the Prime Minister intended to keep all this secret from minsters, especially the Brexit group.

She wants to keep as many EU institutions in UK as intact as possible in order to facilitate an easy return to the EU after 2020.

Chancellor Merkel briefed May on tactics to force Cabinet approval.

The Prime Minister and senior civil servants were working with Germany to stop Brexit or water it down to prevent free trade and the ending of freedom of movement, but to keep cash flowing to the EU.

David Davis was kept in the dark while key EU premiers in France, Holland and Ireland were briefed in full.

Key EU heads were actually briefed in full the day before the Cabinet meeting at Chequers.”

At the time of the Chequers agreement release one journalist said a source let slip that May had said that Angela had seen and approved the deal, this was later denied by no. 10, it was also rumoured that the majority of the negotiation by May was being done with Merkel, and generally believed that if Merkel agreed the deal then it would be agreed to by the EU.

Tomorrow is PMQs, we just have to hope a Brexit supporting MP will bring this up. It will be interesting to see what her response is.

Ardern competing with Brexit mess in trade talks with UK, EU

Jacinda Ardern is in the UK to have trade talks with Theresa May, but with the turmoil over Brexit there is probably not much that can be achieved at this stage.

NZ Herald:  PM Jacinda Ardern to meet Theresa May during time of Brexit tumult

When Prime Minister Jacinda Ardern meets her embattled British counterpart Theresa May tonight (NZT) she will be hoping the latter will not be too distracted by the Brexit turmoil in her own country to discuss trade.

Ardern, who is in the UK for a brief visit before heading to the World Economic Forum in Davos, Switzerland, has put trade at the top of her agenda, saying free-trade agreements with both Britain and the European Union are priorities.

But trade agreements are unlikely to be priorities for the UK or EU at the moment.

Ardern will be seeking a reassurance from May that New Zealand will be no worse off, including in trade, following Britain’s departure from the European Union.

May will be much more concerned about how ;worse off’ the UK may be if she doesn’t sort out her Brexit mess – or if she does sort it out.

“My visit to the UK is an opportunity to underline New Zealand’s position as a natural and long-standing partner for the country as it redefines its global role post-Brexit,” Ardern said in a statement last week.

That ignores the fact that the UK dumped New Zealand “as a natural and long-standing partner” in the 1970sw as they turned to Europe and the EU.

While May will hear Ardern’s reminder that New Zealand is high on the list of countries Britain wants to negotiate free trade agreements with, it likely won’t be high on her list of short-term priorities.

Before Britain is in any position to negotiate free trade agreements, the House of Commons must first agree on a way forward or face a so-called “hard Brexit” on March 29 – that is leaving the European Union with no plan.

Ardern is at Davos for two days before heading to Brussels for meetings with European Council and Commission leaders.

Where she will also probably struggle to make much trade headway.

Some nice things will probably be said after both the UK and EU meetings, but it is unlikely much of substance will come out of either at this time.

 

Tricky time for Ardern for trade talks in Europe

In the UK Brexit is in disarray, and this mess will cause difficulties working out future trade alliances there and in Europe. But all this up in the air Jacinda Ardern is going to try.

RNZ: Prime Minister Jacinda Ardern heading to Europe with a focus on trade

Prime Minister Jacinda Ardern heads to London this weekend where she’s expected to meet with British Prime Minister Theresa May in the wake of her surviving a no-confidence vote.

While there Ms Ardern will push for certainty that New Zealand will be left no worse off in respect of trade following the United Kingdom’s decision to leave the European Union (EU).

I doubt that trade with New Zealand will be much of a priority for May or for the UK right now. They don’t know what they are doing for themselves let alone what they might be able to do with countries on the other side of the world.

She will then head to the World Economic Forum in Switzerland, along with the Finance Minister Grant Robertson, where the focus will be progressing a free trade agreement with Europe.

The prime minister will then head to Brussels for high-level meetings.

“My visit to the UK is an opportunity to underline New Zealand’s position as a natural and long-standing partner for the country as it redefines its global role post-Brexit,” Ms Ardern said.

What ‘post-Brexit’ will look like is anyone’s guess right now.

“I will be using my engagements to enhance New Zealand’s profile as a likeminded partner to the EU across a wide range of issues, including climate change, social policy, trade and our commitment to the rules-based system,” she said.

“There is still much progress to make in trade talks with our European partners, so a key focus of this whole trip is to speak to European Commission and individual country leaders to shore up support for our ongoing negotiations and ensure New Zealand exporters achieve a great deal.”

Ardern is probably on the mark saying “There is still much progress to make in trade talks with our European partners”.

She has too make the most of her trip to London and Europe, but it is going to be difficult making much progress on trade deals.

Unless Ardern can sort out Brexit for May and the EU while she is there.

“Anything less than a clean break from #EU will be a betrayal of the Referendum vote”

It’s not surprising to see that a majority those who voted for Britain leaving the European Union think the referendum should be honoured.

‘Remainers’ lean strongly towards their EU preference rather than the referendum.

EU aims for net-zero emissions by 2050

This looks similar to New Zealand’s net-zero emissions by 2050 goal.

If they are going to reduce energy imports by 70% they will need to make significant progress towards alternative energy, if they don’t ramp up nuclear power.

Net-zero emissions a big goal but a long way out – 2050 is over thirty years away.

I wonder if they would be better having shorter term goals – five year and ten year targets – with realistic plans (that can be explained and sold to the public) to attain them.

 

EU leaders agree to UK Brexit proposal

RNZ: UK’s Brexit deal agreed by EU leaders

EU leaders have approved an agreement on the UK’s withdrawal and future relations – insisting it is the “best and only deal possible”.

After 20 months of negotiations, the 27 leaders gave the deal their blessing after less than an hour’s discussion.

hey said the deal – which needs to be approved by the UK Parliament – paved the way for an “orderly withdrawal”.

Theresa May said the deal “delivered for the British people” and set the UK “on course for a prosperous future”.

Speaking in Brussels, she urged both Leave and Remain voters to unite behind the agreement, insisting the British public “do not want to spend any more time arguing about Brexit”.

The UK is scheduled to leave the EU on 29 March 2019.

The EU officially endorsed the terms of the UK’s withdrawal during a short meeting, bringing to an end negotiations which began in March 2017.

European Commission President Jean-Claude Juncker said anyone in Britain who thought the bloc might offer improved terms if MPs rejected the deal would be “disappointed.

The UK Parliament is expected to vote on the deal on 12 December, but its approval is far from guaranteed.

Labour, the Lib Dems, the SNP, the DUP and many Conservatives MPs are set to vote against.

Mrs May has appealed to the British public to get behind the agreement – saying that although it involved compromises, it was a “good deal that unlocks a bright future for the UK”.

At a news conference in Brussels, she said the agreement would:

  • end freedom of movement “in full and once and for all”
  • protect the constitutional integrity of the UK, and
  • ensure a return to “laws being made in our country by democratically elected politicians interpreted and enforced by British courts”.

The agreement, she added, would not remove Gibraltar from the “UK family” – a reference to a last-minute wrangle with Spain over the territory.

The EU leaders have approved the two key Brexit documents:

  • The EU withdrawal agreement: a 599-page, legally binding document setting out the terms of the UK’s exit from the EU. It covers the UK’s £39bn “divorce bill”, citizens’ rights and the Northern Ireland “backstop” – a way to keep the Irish border open, if trade talks stall
  • The political declaration, which sets out what the UK and EU’s relationship may be like after Brexit – outlining how things like UK-EU trade and security will work

There was no formal vote on Sunday, with the EU proceeding by consensus.

Trump threatens countries who don’t negotiate ‘fair trade’ deals with tariffs

The United States negotiated a wide ranging trade deal with eleven Pacific rim countries in the Trans-Pacific Partnership Agreement.

Donald Trump withdrew the US as son as he became president. The eleven remaining countries went on to ratify the agreement without the US. Since then Trump has reconsidered – Trump Proposes Rejoining Trans-Pacific Partnership – but hasn’t done anything more than pontificate.

Trump has also attacked other trade agreements and trading arrangements, including with:

With all this chaos going on Trump has just issued another  threat:

Trump may succeed in bullying some countries into better deals for the US, but this ultimatum approach is not good for getting mutually beneficial and long lasting trade agreements.

And it is not good for international relations generally.

Playing the tough guy (except with Russia) may keep pleasing Trump’s dedicated base supporters,

And this is also having an impact on the US, with farm subsidies, already a major factor in trade issues, set to increase.

WSJ: Trump Administration to Offer About $12 Billion in Farm Aid to Ease Concerns Over Trade Disputes

The Trump administration on Tuesday is expected announce a plan to extend some $12 billion in emergency aid to farmers amid growing concerns that the U.S. agricultural sector could suffer from President Donald Trump’s escalating trade dispute with allies…

US agriculture has long been bolstered by subsidies and tariff protection – and still needs more aid to survive. Nuts.

WSJ: The Many Ways Trump’s Trade Disputes Are Affecting the Auto Industry

Auto-industry representatives are expected to argue during a U.S. Commerce Department hearing Thursday that President Donald Trump’s proposed tariffs on auto imports would cost jobs and increase car prices.

The White House in May asked the Commerce Department to investigate whether it could use a national-security law to impose tariffs of up to 25% on imported vehicles and car parts. Mr. Trump has argued trade barriers are needed to pressure manufacturers to build more goods in the U.S. and expand factory jobs.

WSJ editorial: Trump Rides a Harley—to Europe

Donald Trump’s trade war has been an abstraction for most Americans so far, but the retaliation has now begun in earnest and the casualties are starting to mount. The President’s beloved stock market took another header Monday on news of more restrictions on investment into the U.S., and the Dow Jones Industrial Average is now down for 2018.

The rest of the world can’t avoid being affected by Trump’s trade interventions and tariffs, but at least they can trade amongst each other. In the meantime Trump is isolating the US, and burning a lot of diplomatic and good faith bridges.

Trump’s trade chaos could get very messy, and not just with trade wars.

From Remain to Brexit due to Euro

Missy:

This is a great explanation as to why Brexit is a good thing. This was originally written as a twitter thread, and picked up by a magazine and published as an article. The guy who wrote it voted Remain, he was angry at the result, but now has an understanding as to why the UK needs to leave the EU, and not just leave, but leave cleanly.

Country Squire: From Remain to Out Now

I could never understand why people were anti EU – what a wonderful liberal construct that did so much good in the world. It brought countries together, helped poor ones develop. It made us prouder to be from this continent as we were building something unique.

So, what changed?

In a word, the Euro.

I remember watching horrified as the EU via the ECB removed two heads of state in Italy and Greece. Forced the Irish to take on their entire banking sector’s debt and drove the Greek economy and much of the south into a depression. How could this be happening? The EU were the good guys. They didn’t do this – that was the US; the IMF; the World Bank.

How could all these people be party to this horror? How could they sit by as peoples’ lives were destroyed and, in many cases, finished due to suicide?

This organisation did not give a shit about the south. It was their fault. And I thought “but that is economically illiterate” but by then I had realised they didn’t care – and so we wandered on towards Brexit.

And the results came – we lost! I was angry. So angry that I remember shouting at my best friend who voted leave – and saying he didn’t realise what he had done – I think more in shock – but after I thought you know this could be good this could be what the EU needs – a wake-up call.

And after a time, I began to realise – watching Verhofstadt, Barnier, Tusk et al – they didn’t get it. They didn’t get the anger that was there – for me over Greece and the state of the Euro but for others – migration, democracy, laws. Listening to the shameful descriptions of the UK as an extremist country and that it was an isolated case – I watched election after election and like Chemical Ali they keep parroting the same line – ‘this is an aberration’. Completely ignoring the trends, completely ignoring the facts on the ground and I realised that they were literally cut off from reality – they had no idea what so many people were thinking!

Even if the wanted to know what ‘the people’ thought it would be difficult to understand ordinary people in every country in the EU.

In any case, the bigger the body, the more distant the head gets from the arms and legs.

I want to go vote and hold politicians to account – I want us to trade, cooperate and ally with countries but one where we have control – we the people – and you know what I might lose many of the arguments and this country might not be what I want all the time.

And if those in power get too distant and too arrogant,in democracies people have an ability to rebel via the ballot box.

As for the EU, I feel its dying – the dream started dying 8 years ago and they are damn well doing their best to make sure it stays dead – but you know what … I don’t wish it ill, it doesn’t need any help from me – I just don’t want to be associated with it anymore.

The disadvantages have grown to eclipse the advantages of the EU.

But it starts for me – getting clean Brexit and starting a new exciting conversation – one that I never thought I would suggest we have – it’s strange how life changes you along the way – strange the way important things fade, and new ones emerge.

Regardless of controversy over the Brexit campaign the UK needs to move forward with it.

And a general hope:

But before that – let’s start by being kinder to each other – I have been as guilty as others – but I have realised it is not healthy for me, for others or the country to rage at each other – people hold their views because they care – let’s all try and keep that in mind.

That is good advice for any country. New Zealand political and social discourse would be the better for a kinder approach. The United States in particular, which is struggling with increasing division.