Brexit
– what has happened so far and how should the question now be
handled?
Introduction
You could start with a
reference to a recent statement about Brexit by one of the parties as
a point of departure. What does Brexit mean?/ a short summary of what
happened with the referendum, the date, result, relatively big
turnout (72% but stronger among older people), narrow victory,
regional and age variations/ Article 50, date invoked/current
deadline to finish negotiations, approve a deal and leave.
Line of argument
(good luck finding one!!!): This essay will argue that the
current situation is more unclear than ever, with no decisive
majority in the UK Parliament or among UK voters for anything. So
both the UK and EU will probably play for time and extend the
deadline in the hope that a clear majority and way forward will
emerge so that the damage of a no-deal hard Brexit can be avoided.
Factors that determined
the result – the effects of globalization and the economic crisis,
fears about jobs and salaries/ and about immigrants/resurgent
nationalism/ EU's perceived 'democratic deficit' and desire to regain
control of policy and full political sovereignty/ many voters may not
have fully understood the consequences of what they were voting for/
fake news about migrants and false figures and expectations about the
economic advantages of leaving used by some Brexiteers to boost the
Leave vote and the failure of the Remain campaigners to expose these
tactics and provide accurate figures and explain convincingly the
benefits of staying in the EU.
There were then a series
of issues to to negotiate between 2016 and 2018 to reach a deal
between the UK and the EU on Brexit. Both sides agreed that it was
important to reach a fair settlement and avoid a 'hard Brexit'
(without a deal) because of the economic costs to both sides. Their
nothing
will be agreed until everything is agreed' approach may have been a
mistake.
The EU's priorities for
negotiations were
a) the future status of
current EU residents in UK (and vice versa) after Brexit (their legal
and social rights, residence, work, health care, pensions etc..)
b) the divorce bill, what
Britain would have to pay in lieu of future contributions (explain
what it covers)
c) the Republic of
Ireland-Northern Ireland border question. Avoiding a hard border
between the two and a danger of a return to the 'troubles' as well as
a major disruption of trade between them.
d) and long term, the key
issue is trade ( 53% of the UK's imports come from EU, which is 8% of
EU exports, while 44% of the UK's exports go to EU). Various trade
models were discussed, Norway, Switzerland, Canada, Turkey, if
nothing else WTO rules, compare and contrast, see below#/ so in the
end there was real difficulty in negotiating a complex, special deal
in the time available.
e) a transition period to
help companies get used to the new arrangements and resolve any
unexpected problems or problems requiring more time to resolve. Such
as
f) future travel
arrangements for work and tourism / clarity on the effects on other
policy areas, e.g. security cooperation and defence.
So what does the UK want?
Basically, the softest possible Brexit on trade, free movement of
goods and services but not of people /a separate political and legal
system/to maintain good relations and close trade relations with the
EU.
After a long negotiation
process Prime Minister May's government agreed a deal with the EU
(Nov 2018) but the deal was voted down in Westminster by a massive
majority. It was criticised for being unclear and leaving too much to
be decided in the future. Hard-line Brexiteers did not like the
'backstop' agreement on Northern Ireland, the continued role of the
European Court of Justice in some cases, some of the trade
restrictions and
the £39bn
divorce bill. Moderate Brexiteers
and Remainers thought the deal was bad for trade and jobs and even
the May government was forced to recognise the costs to the economy
in the next 15 years. See below§
What are the options now?
(as of 03/03/19)
- accept a slightly modified version of the deal
- revoke the UK's notification of intention to withdraw under Article 50 (but would this be seen as undemocratic?)
- vote against a no-deal, hard Brexit and postpone leaving (extend the deadline) to gain time for more negotiations with the EU (which says there is nothing more to negotiate but is willing to grant a postponement to avoid a hard Brexit) and between the parties in Westminster.
- vote against a no-deal, hard Brexit and postpone leaving and have another referendum now that the costs of leaving are clearer, or another general election in which Brexit would be the key issue.
- Leave with a no-deal, hard Brexit on March 29th and accept the massive costs to the UK economy and serious costs for the EU too.
Conclusion: (Good luck
with this too !!!) Basically the UK would like to have nearly all the
advantages of being in the EU without any of the disadvantages.
However, the EU can not be expected to abandon its basic principles
to reach a deal. Above all, the EU can not abandon the backstop (a
kind of customs barrier across the Irish Sea, leaving Northern
Ireland in the EU customs area with the Republic of Ireland) without
giving up the reality of its customs union which must, by definition,
have an external border somewhere.
Are there any lessons we
can learn from Brexit? Here are some ideas:
A government should not
call a referendum without being sure the voters really understand the
effects of their decision.
The dangers of fake news,
populism and unrealistic expectations about the possibilities
available through negotiations.
Perhaps a referendum on an
important issue should require a two thirds majority, not just 50%.
Perhaps it would have been
better to see what kind of a deal was possible before invoking
Article 50 (or even before the referendum).
Should the UK government
resign and invite the formation of a 'caretaker' cross-party
government?
Other questions to
consider :
The need for economic
stability and market confidence/ the importance of a deal to both
parties for future relations/the importance of goodwill, cooperation
and compromise where possible to achieve a good outcome for both
parties
the effects on the UK /of
a no-deal, hard Brexit/damage to the economy/ does withdrawal weaken
it internationally? /will it lead to or accelerate a break-up of the
UK? /will it remain a close EU ally?
The effects on the EU /of
a no-deal, hard Brexit/ damage to the economy/ possible spillover
effect on the spread of nationalism and Euroscepticism in other EU
member states or an opportunity for greater unity?/the EU defence
system
# The UK seems to
want
a) to reach a
comprehensive deal with the EU and not be left without one and thus
the WTO rules on trade which would mean EU tariffs
b) to have tariff-free
trade with EU member states but to be able to place limits on
immigration from the EU
so not EU membership and
not the Swiss model (EFTA) and not the Norwegian model (EEA)
c) to have tariff-free
trade with EU member states without sharing the EU's external tariffs
system
so not the Turkish model
d) not to share the EU's
external tariffs system and to have broad tariiff-free trade with EU
member states which includes financial and related professional
services (12% of the UK's GDP)
so not the limited
Canadian model either (and again not the Turkish model)
e) So, given its level of
trade with the UK, is the EU willing to give the special deal it has
offered the UK these features when it comes to agreeing the details?
Can it renegotiate any part of a deal that all the 27 members have
already accepted?
§Cost
of leaving according to the UK government's own figures:
- May's deal would cut UK GDP by up to 3.9% over 15 years, according to official government analysis.
- A no deal Brexit could cut UK GDP by up to 9.3%
- A Canada-style free trade deal would leave GDP about 6.7% lower than if Britain had remained.
- A Norway-style soft Brexit would not have a negative impact on the economy.
- Moreover, the real impact of May's Brexit deal could be larger than the analysis suggests, as it assumes the UK would roll over all existing EU trade deals with third countries and successfully strike new free trade deals with at least 17 other countries.
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