May to issue 70 papers to prepare for no deal
THERESA May is preparing to publish more than 70 papers giving instructions on how to prepare for a no-deal Brexit.
In a clear sign that plans are accelerating to cover the negotiations collapsing, the Prime Minister said the technical notices would tell firms and individuals what to do ‘in the event of a no-deal scenario’.
Her comments came as International Trade Secretary Liam Fox warned EU leaders of the catastrophic economic consequences of failing to reach an agreement.
As new Brexit Secretary Dominic Raab prepared to make his first trip to Brussels, Mrs May told the Commons Liaison Committee: ‘The Secretary of State for Exiting the EU will be setting out today that over August and September we’re going to be releasing a number of technical notifications to set out what citizens and business need to do in the event of a no-deal scenario, making more public awareness of the preparations. We imagine there are going to be around 70 of those notices.’
Yesterday, Dr Fox spelled out the risks of no deal for the EU’s economic output, saying Ireland’s could collapse by 8 per cent – the equivalent of tens of billions of pounds.
Other countries with close economic ties to the UK would also be hit, including the Netherlands, which faces a 4 per cent fall in output, and Belgium on 3.5 per cent.
Dr Fox said that after the Chequers agreement almost two weeks ago, when the Cabinet agreed to Mrs May’s controversial Brexit strategy, the onus was on the EU to compromise, adding: ‘We have made an offer to the EU27. The ball is now in their court.
‘We think that’s a fair and reasonable deal and they have to understand what no deal might mean as a consequence to their economies.’
Aiming his remarks at EU officials, he said what was needed was a ‘people’s Brexit, not a bureaucrats’ Brexit’, in which the prosperity of citizens was placed above the ‘abstract ideology of the Brussels bureaucrats’. Dr Fox also launched four consultations on post-Brexit trade deals, and hinted that tariffs on imports of US cars could be cut to below EU levels to secure an agreement with Donald Trump.
He insisted that a deal with the US was still achievable despite the agreement to keep a ‘common rulebook’ with the EU after Brexit, which will mean no changes to regulations on manufactured goods and food.
As well as the US, Dr Fox will target deals with Australia and New Zealand and with the TransPacific Partnership of 12 countries including Australia and Canada.
The EU Commission is also preparing guidance for member states urging them to prepare for no deal. Drawn up by secretary general Martin Selmayr, the guidance was circulated in draft form last week, with a final version set to be released to member states today as Mr Raab visits Brussels.
It warns of long queues at ports and aviation chaos.
The document also paints a picture of massive disruption in other sectors, including customs, health, pharmaceuticals, and financial services, in particular those in the City of London, which will lose access to the Single Market.
One diplomat said: ‘The timing is designed to stick two fingers up to the British and Raab.
‘It’s no coincidence this is being issued on the same day Raab makes his first trip and that there was this draft of it leaked last week. Of course it’s calculated, everything Selmayr does is calculated.’
Another official said: ‘It’s Selmayr upping the ante and saying “we’re prepared to do this”. It’s just all about messaging.’ Countries are already preparing for no deal, and if they haven’t started it’s probably too late.’
Both officials stressed that Mrs May’s Chequers agreement will not be enough to satisfy Brussels.
Diplomats are also preparing themselves for Britain to request an extension to Article 50 of the EU’s Lisbon Treaty – which allows members states to leave – to set a new withdrawal date and allow more time for negotiations.
Comment – Page 16
‘Sticking two fingers up to the British’