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Brexit’s “Key issues”

The UK and EU say key issues remain unresolved following unscheduled Brexit talks in Brussels. On June 23rd, 2016, Britain narrowly voted to leave the European Union, stunning Europe and the world in general. The EU employs a set of policies for its 28-member states that aim to ensure the free movement off…

The UK and EU say key issues remain unresolved following unscheduled Brexit talks in Brussels.

Background

On June 23rd, 2016, Britain narrowly voted to leave the European Union, stunning Europe and the world in general. The EU employs a set of policies for its 28-member states that aim to ensure the free movement of people, goods and trade among other services. Britain is deeply intertwined with the workings of the EU especially with regard to trade.

Over the past year, leaders of member nations have expressed their dismay over Britain leaving the body. German Chancellor Angela Merkel and Dutch Prime Minister Mark Rutte are among those who have been vocal about their apprehension regarding the events that are unfolding.

In December 2017, UK Prime Minister Theresa May struck a last-minute deal with the EU regarding key issues. According to this deal, there will be no “hard border” in Ireland. The rights of EU citizens in the UK and the rights of UK citizens living elsewhere in the EU would also be protected in accordance with the deal.

The UK is officially set to leave in March 2019.

Analysis

Brexit Secretary Dominic Raab and EU chief negotiator Michel Barnier met for more than an hour ahead of a crunch EU leaders’ summit this week.

Mr. Barnier tweeted that issues, such as how to avoid a hard border with Ireland, were “still open”. A UK government spokesman said UK and EU negotiators “have made real progress in a number of key areas. However there remain a number of unresolved issues relating to the backstop,” he added.

The talks had “made progress” in the last few days – and dismissed reports of a row between Mr. Raab and Mr. Barnier – but added it was “clear the two sides are stuck” on how the Irish backstop might work. No further talks are planned before Mr. Barnier and Theresa May’s summit on Wednesday, she added. The meeting comes as domestic political pressure on Mrs. May increases amid threats of potential cabinet resignations.

In a letter to the prime minister, Scottish Secretary David Mundell and Scots Tory leader Ruth Davidson said they would not accept Northern Ireland being treated differently than the rest of the UK in any Brexit deal. This follows reports that other top ministers have been considering their positions over the weekend, ahead of a meeting of the cabinet on Tuesday at which ministers could be asked to give their consent to an agreement.

The Raab-Barnier meeting came amid conflicting signals as to whether the two sides were nearing a deal on the terms of the UK’s exit next March. Many Conservative MPs are unhappy with the UK government’s proposed alternative, which would see the UK temporarily remain in a customs union until the Irish border question is resolved, either through technological solutions or as part of a wider trade agreement.

‘Brexiteers’ fear this will leave the UK in indefinite limbo, bound by the EU’s rules and limited in the trade deals it can negotiate with other countries. Foreign Secretary Jeremy Hunt, who has been hosting other European foreign ministers at his Chevening residence, said such calls were “wrong” when “last-minute” talks were going on and Mrs. May was “battling for Britain”.

“The reason that’s wrong is there is no-one who is going to be able to negotiate the right deal for Britain better than Theresa May. This is the time to stand rock solid behind Theresa May.”

Counterpoint

PM May’s “Chequers” plan is the biggest bone of contention between the UK and EU negotiators which has not been addressed so far. The UK has reiterated that the ‘Chequers’ plan will be the UK’s official stance in the negotiation. The plan, however, does not address the Northern Ireland Border issue. However, it lays down a long list of demands from the EU, which include the continued free access to the EU common market for the UK for an indefinite period of time.

Assessment

Our assessment is that as Britain was able to secure a deal regarding key issues in December 2017, the possibility of a no-deal Brexit seems unlikely in the status quo. However, the directionless negotiations between the government and the lackluster leadership from the Prime Minister are leaving a cloud of doubt on any potential Brexit deal. UK companies and the government must prepare for the reality that post-Brexit, the private sector will not be able to access the same amount of privileges in Europe that it enjoys presently.


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