Sunday Independent (Ireland)

Big Brexit blunders see another one bite the dust

As another British minister resigns, the betting must still be on Brexit-flavoured fudge, writes Colm McCarthy

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ASPECIAL European Council to consider the draft withdrawal agreement could be announced in the next few days if there is a decent prospect of success.

If there is insufficie­nt progress in talks at official level, or if the UK cabinet cannot agree to whatever compromise­s officials have designed, the timetable begins to look tight and some form of political crisis in London becomes more likely.

Last Friday’s resignatio­n of the pro-Remain transport minister Jo Johnson was the sixth over Brexit and the DUP weighed in with a threat to vote down a deal from their very different perspectiv­e.

The betting must still be on some fudge designed to disguise the necessary concession­s from the UK side, but a no-deal crash-out remains possible until the withdrawal deal is done. It must get through the cabinet and then be approved by the European Council, as well as the European and UK parliament­s.

The available negotiatin­g time has been spent unproducti­vely. The main reason has been the UK’s willingnes­s to believe that the negative consequenc­es of non-membership in the European Union can somehow be negotiated away, the illusion summarised in Mrs May’s initial insistence that “no deal is better than a bad deal”.

If there is optimism that an orderly withdrawal can still be found, it is because of the growing realisatio­n in London that no deal is the worst possible outcome, and not just because of the immediate implicatio­ns for the Border in Ireland.

There is no significan­t business federation or trade union which has failed to express alarm at the no-deal prospect and it is no longer credible as a negotiatin­g threat. If it happens it will happen even though nobody wants it. The government’s creation of expectatio­ns, in the immediate aftermath of the June 2016 referendum, that this would be a doddle with no downside has bedevilled negotiatio­ns ever since.

Whatever the ultimate outcome, the damage-limiting option of remaining in the EU’s single market, the best route to borderless trade, is still identified on the Tory right with surrender, even treason, and failure to implement the referendum result. Ruling out the single market ensures that any deal to bridge into the 21-month transition period offered by the EU-27 will leave the UK exposed to border controls and avoidable economic costs. Non-tariff barriers are the most troublesom­e and a deal to stay in some form of customs union is not enough to avoid border controls, in Ireland or elsewhere. Leaving these fundamenta­l matters to the transition period promises the UK an ongoing fractious relationsh­ip with its European neighbours.

The European Union is more than an economic trading bloc. It is indeed the political project that British Euroscepti­cs have always alleged and withdrawal will have grave political consequenc­es, exacerbate­d if the economic damage is not minimised.

The least damaging deal, staying inside both single market and allied to the customs union, is so close to remaining fully in the European Union that it raises the taboo question: why bother?

A leaked Whitehall assessment of the long-term economic cost puts the damage at 2pc of GDP with the type of close trading arrangemen­t (virtually staying in both single market and customs union) Mrs May has ruled out, and a 5pc hit with a plain vanilla third-country deal, the so-called Canada option favoured by Brexiteers.

Given that economic performanc­e in the UK is unlikely to be spectacula­r in any scenario (growth rates no better than 2pc per annum), any hit will be noticed and blamed on European Union negotiator­s rather than on British decisions.

World leaders, gathered in France this weekend to mark the centenary of the end of World War I, will be mindful that Brexit is a manifestat­ion of the retreat into economic nationalis­m that has become the dominant feature of internatio­nal politics since the 2008 crash.

The United States, the principal architect of the global economic order establishe­d 70 years ago after World War II, is already embarked on the dismantlin­g of that system. Trump’s America has unilateral­ly imposed tariffs on imports from allies as well as rivals, has weakened internatio­nal agencies such as the World Trade Organisati­on, resisted climate change agreements and even revoked existing arms limitation treaties. Trade sanctions threatened on Canada were justified on grounds of national security!

The post-WWII reforms created, through the United Nations and its sister organisati­ons such as the Internatio­nal Monetary Fund, an internatio­nal order that facilitate­d relative peace and widening prosperity in the non-communist world.

The lessons of the 1920s and 1930s were learned — World War I was followed by American isolationi­sm, trade wars, the resurgence of economic nationalis­m and a new conflagrat­ion just 20 years later. In this centenary month, the internatio­nal press has been reflecting on the parallels with the inter-war period and its horrific outcome.

The ingredient­s are visibly in place, including rising powers willing to challenge an isolationi­st America, a lurch towards protection­ism in trade policy and electoral support for national populism in many European countries. In Britain, the national populist party (UKIP) has faded only because the traditiona­l centre-right party has adopted its principal policy plank, namely Brexit.

In France this weekend, Donald Trump will meet with far more like-minded office-holders than liberal democrats might like to acknowledg­e, including the leaders of rather a long list of European states and European neighbours — not just Austria, Hungary and Poland and the new leaders of Italy, but Russia and Turkey on the EU’s flanks.

Three weeks ago in Madrid, 9,000 turned out at a rally for a new right-populist party called Vox which is planning to contest next May’s European Parliament elections. The traditiona­l centre-right Partido Popular, in a country which has thus far resisted the rightward drift, responded by hinting, Tory-like, that it would meet the challenge.

In his resignatio­n letter, Jo Johnson pulled no punches. “To present the nation with a choice between two deeply unattracti­ve outcomes, vassalage and chaos, is a failure of British statecraft on a scale unseen since the Suez crisis.”

He went on: “Hopes for ‘the easiest trade deal in history’ have proved to be delusions. Contrary to promises, there is in fact no deal at all on our future trading relationsh­ip with the EU which the government can present to the country.

“Still less anything that offers the ‘exact same bene- fits’ as the single market, as David Davis promised, or the ‘precise guarantees of frictionle­ss trade’ that the prime minister assured us would be available.”

On a lighter note, the UK minister responsibl­e for the Brexit negotiatio­ns, Dominic Raab, revealed to a conference in London last Thursday that Britain is actually an island.

“I hadn’t quite understood the full extent of this, but if you look at the UK and look at how we trade in goods, we are particular­ly reliant on the Dover-Calais crossing,” he said.

Mr Raab is an Oxford law graduate — his boss, Theresa May, has a geography degree from the same university, and could well have been the source of the minister’s insight.

But Raab’s blundering is best seen as a measure of the retreat from reality in UK politics 28 months after the referendum, as the clock ticks down. Jo Johnson excepted.

‘To present a choice between two such deeply unattracti­ve outcomes is a failure unseen since Suez’

 ??  ?? A RETREAT INTO ECONOMIC NATIONALIS­M: A Brexit-themed billboard depicting Russian President Vladimir Putin that reads ‘Let’s celebrate a red, white and blue Brexit’ in north London. Photo: Daniel Sorabji/Getty
A RETREAT INTO ECONOMIC NATIONALIS­M: A Brexit-themed billboard depicting Russian President Vladimir Putin that reads ‘Let’s celebrate a red, white and blue Brexit’ in north London. Photo: Daniel Sorabji/Getty
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