Sunday Independent (Ireland)

Colm McCarthy

Britain’s withdrawal from the EU will descend into a series of squabbles and grievances, writes Colm McCarthy

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WITH or without a withdrawal agreement, the United Kingdom departs the European Union on March 29 next by automatic operation of the law.

The UK resigned, the treaty provision takes effect two years later and the UK parliament can vote against ‘no deal’ as often as it likes. If the House of Commons declines to endorse the deal as negotiated, the Article 50 resignatio­n takes effect regardless, just four months from now, and there will be no standstill or transition period.

Barring some exceptiona­l developmen­t there are just two choices — Theresa May’s deal or a chaotic crash-out, for which the time to make damage-reducing preparatio­ns has been squandered.

MPs from both the Leave and Remain wings of the Tory party have expressed opposition to May’s deal and it may fail on its first presentati­on to parliament. In which case there will likely be a second attempt and Damascene conversion­s all round.

There is just one circumstan­ce in which another course becomes possible. If parliament votes for a second referendum, the EU could defer the operationa­l date of Brexit in response to a UK request, which May says she will not make, to permit the necessary legislatio­n and the vote itself.

Presumably May would have resigned and been replaced. But this prospect, a Brexit reversal, is receding, not least because Labour leader Jeremy Corbyn has declined to support it. Of course, a second referendum could produce the same result as the first and for that reason alone the EU leaders may already have written it off.

For May to have antagonise­d both the pro- and anti-European wings of the Tory party is not such a surprising outcome. The red lines introduced in her Lancaster House speech in January 2017 have pre-ordained a sub-optimal result while raising expectatio­ns.

The Brexiteers welcomed the promise of departure from both single market and customs union, while the disappoint­ed Remainers took solace from her insistence that ‘frictionle­ss trade’ with Europe would somehow be delivered. Almost two years have been devoted to learning that no such happy outcome was possible, given the red lines.

Precisely because the EU’s internal market is deep, including customs integratio­n and the regulatory union of the single market, there must be a sharp distinctio­n between members and non-members. Hence border controls.

Frictionle­ss access tantamount to membership in the single market has not been delivered because it is not deliverabl­e. No non-member enjoys the full access which many in the UK thought feasible — not even countries like Norway willing to accept the single market rules.

May’s failure to square these impossible circles, and the shocked reaction to the deal unveiled these last two weeks, have been largely a failure of expectatio­ns management.

The key passages in May’s Lancaster House speech ruled out adherence to the single market and extolled the prospects for Global Britain, concluding, she hoped, new trade agreements with countries around the world, in competitio­n with the European Union, which pursues such deals all the time.

She also committed to ending freedom of movement — that is, to control European immigratio­n into the UK — and to ending the jurisdicti­on of the European Court. All of this was to be achieved without cost: the red lines would not inhibit the UK’s future trade with Europe and exciting new opportunit­ies were going a-begging on the open sea.

There was never a feasible deal which offered greater sovereignt­y and freedom of action without trade-offs. The Lancaster House vision was a fantasy from the start and has nurtured unrealisti­c expectatio­ns ever since. Hence the incessant blame game in London and the accusation­s of ‘bullying’ against the EU. Now all that is left is the withdraw- al agreement as negotiated, an open-ended involvemen­t with Europe’s customs union and not even freedom from a continuing role for the European Court.

The tangible ‘success’, if such it be, is the ending of free movement, which May has trumpeted for whatever it is worth.

Dissident Tory MPs and almost all the commentato­rs on both sides of the argument are howling that the deal is a humiliatio­n for the UK, but it should have been foreseen. The disappoint­ments are not over. If the deal goes through, it will secure immediate relief from the horrors of a no-deal Brexit but then comes the negotiatio­n of a long-term trade deal with the EU and further horrors.

What is currently before the House of Commons is the withdrawal agreement, which delivers for Britain the safe harbour of a transition period up to the end of 2020 and possibly extendable. But the cliff-edge has been deferred, not avoided. It is most unlikely that a free trade agreement between the UK and the EU will be concluded inside a few years (the Canada deal took seven) and the negotiatin­g balance will be just as unfavourab­le for the UK as it has been up to now.

The ‘political declaratio­n’ which accompanie­s the withdrawal agreement consists mainly of aspiration­al (and non-binding) language about future arrangemen­ts, but there are some unambiguou­s items. The most explicit provision is that the UK and the EU will be “separate markets and distinct legal orders”. This ends any hopes raised by May’s Chequers plan that the UK could somehow enjoy single market access without single market rules. Out means out and means borders of some kind.

The liberalise­d aviation market, for example, one of the stand-out successes of the European Union over recent decades, could be closed to the UK unless some serious agreements are negotiated during the transition phase.

The UK had sought some form of continuing membership in the European Aviation Safety Agency which licenses airfields, pilots, manufactur­ers and maintenanc­e facilities.

This has been declined, in favour of ‘exploring fu- ture cooperatio­n’. There is a commitment to talks about a future air services agreement, but it is all very vague.

If the withdrawal agreement goes through there will be no disruption at the end of next March but the potential for future squabbles is clear. There is no certainty either for London’s financial services firms, just more promises of talks.

The entire process on which the UK has embarked, assuming the withdrawal agreement goes through, will I fear turn into a perpetual grievance machine as the detailed negotiatio­ns proceed.

The expectatio­n remains widespread in Britain that a non-member of the European Union, which has also chosen to exit the single market and to end freedom of movement, can somehow continue to trade in Europe as if trading in its home market.

There will be one grievance after another, about product standards, fisheries, aviation, passportin­g for financial services and all the rest as European negotiator­s engage with their UK counterpar­ts.

The EU team will seek to secure the best deal for their principals from a superior negotiatin­g position. This will be represente­d as bullying and taking unfair advantage in parts of the British press whose xenophobic tendencies have been much in evidence.

But it is neither bullying nor is it unfair: it is the way that internatio­nal trade negotiatio­ns have always worked.

The EU negotiator­s will treat the UK as they would any other third country. That is, after all, what the UK has chosen to become.

‘EU negotiator­s will treat the UK as any other third country’

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