Today, the UK’s House of Commons backed the post-Brexit EU-UK Trade and Cooperation Agreement. Parliament approved the 1246-page deal with 521 to 73 votes. The alternative would have been a No-Deal-Brexit.
Before the vote, Prime Minister Boris Johnson (Tories) tried to sell the British public another Brexit-fantasy (after Get Back Control and Get Brexit Done and Oven-Ready Deal). On the other side of the dispatch box, opposition leader Keir Strarmer (Labour) rightly pointed out to the fact that, indeed, the agreement says no tariffs and quotas. The Labour leader stressed that this is only valid as long as the United Kingdom respects EU standards, rules, regulations. The moment the UK tries to get “sovereignty” back by diverting from the level playing field, tariffs could kick in.
In fact, for the first time in decades, there will be checks at the border to insure that British exports are in compliance with EU regulations and that the rules of origin of goods are respected. It means more and not less bureaucracy. The complex supply chains between the UK and the EU will become more costly. At the same time, the UK has not gained regulatory autonomy.
The UK is a largely service based economy (80%). The post-Brexit EU-UK Trade and Cooperation Agreement says little about services. In other words, the EU and the UK still have to negotiate a lot.
Brexit was a fairy-tale from the start. Brexiters wanted — and now managed — to exit the world’s largest free trade area to conclude … free trade agreements. The EU accounts for roughly 50% of the UK’s imports and exports. The UK is now out of the EU single market and customs union. It’s a step back not forward.
The UK is now out of the EU and, therefore, has no more influence on future EU legislation, rules, regulations. At the same time, the British still have to comply with EU standards to uphold the level playing field. Furthermore, the camp within the EU fighting for free trade, economic liberalism, fiscal discipline got weakened by Brexit, whereas the “Club Med” was strenghtened.
The UK and the EU engaged into a heavy fight on fisheries which account for — hold your breath — 0.1% of the UK’s economy. The 1246-page post-Brexit EU-UK Trade and Cooperation Agreement contains 346 times the word “fish” (fisheries, etc.). In short, Boris Johnson and the Brexiters are not strategic masterminds but incompetent populists.
Yes, the EU needs to reform for instance its agricultural policy (in 2019 still 37% of the EU budget) but, pre-Brexit, the UK already had the best deal: as an EU member state it was part of the world’s largest free trade area and customs union.
On top of the page: Boris Johnson (official photo as Foreign Secretary). Photo credit: www.gov.uk
Article added on December 30, 2020 at 20:02 Swiss time.
