Govt: nodeal Brexit will be lowimpact for NZ
WELLINGTON: Senior ministers are playing down the negative impacts of a nodeal Brexit on New Zealanders, as drama continues over Britain’s divorce from the European Union.
Although British MPs narrowly voted against leaving the EU without a deal yesterday, there are just 16 days before the UK is scheduled to leave the 28nation bloc.
In the past, British MPs have rejected Brexit deals brought before Parliament by Prime Minister Teresa May.
As such, questions have been raised as to whether a deal could be reached in that short timeframe.
However, it has been reported the EU is likely to extend the deadline.
Speaking in the House yesterday, Finance Minister Grant Robertson said Treasury’s assessment was that a nodeal Brexit would likely have a small overall impact on the New Zealand economy.
The main impact would be mainly due to the disruption of New Zealand businesses and industries, he said.
UK tourist numbers could fall, Mr Robertson said, and New Zealand goods could be at risk of facing delays at the border.
As there is no clear outcome to the Brexit process, Mr Robertson said the Government would continue to monitor and plan for ‘‘all contingencies’’.
Both the UK and New Zealand’s Government have publicly signalled their intention to negotiate a ‘‘high quality’’ comprehensive bilateral freetrade agreement, once the UK is in a position to do so.
The UK Government has outlined a pricing regime which details what would happen in the event of a nodeal Brexit.
Although the documents show tariffs on 90% of imported goods could be slashed, import taxes on beef, lamb and dairy would not be changed.
This would be an attempt to support UK farmers and producers of such products, the Government said.
Mr Robertson said New Zealand was ‘‘not alone in having concerns about this issue’’.
‘‘We are continuing to raise them both in the European Union context and in the UK.’’ — NZME
LONDON: The British Parliament yesterday rejected leaving the European Union without a deal, further weakening Prime Minister Theresa May and paving the way for a vote that could delay Brexit until at least the end of June.
After a day of high drama, lawmakers defied the Government by voting 321 to 278 in favour of a motion that ruled out a potentially disorderly ‘‘nodeal’’ Brexit under any circumstances.
It went further than the Government’s position of keeping the threat of a ‘‘nodeal’’ Brexit on the negotiating table — a stance many in her party said was essential to push Brussels to make further concessions to the deal they have rejected.
While the approved motion has no legal force and ultimately may not prevent a nodeal exit, it carries considerable political force, especially as it passed
thanks to a rebellion by members of May’s own Conservative Party and her Cabinet.
May, who still insists it is not possible to rule out a nodeal Brexit entirely, said lawmakers would need to agree a way forward before an extension could be obtained.
The European Commission repeated that a delay would indeed require a justification — but positive comments from Germany and Ireland suggested that EU members at last saw a prospect that a viable deal would be found, and were inclined to help.
The pound rose more than 2% on the rejection of ‘‘nodeal’’ and was headed for its biggest daily gain this year.
The Government said there were now two choices — agree a deal and try to secure a short delay to Brexit, or fail to agree anything and face a much longer delay.
May said her preference was for a short delay, which would mean the Government trying to pass the deal she negotiated by the middle of next week.
She hopes to find a way to persuade hardline proBrexit lawmakers to back her deal at the third attempt. — Reuters