Sunday, 20 December 2020

Brexit transition period: Deal or no deal

12 more days until we enter the new year 2021. 

When the UK formally left the European Union earlier this year on 31st January 2020, the transition period started on 1st February 2020 and it will finish on 31st December 2020. Deal or no deal = trade deal or no trade deal. 

The UK and the EU have been negotiating for post Brexit trade deal since March. The government had been irresponsibly hesitant to extend the transition period up to one year or two years. Given they had an option to do so in June this year. Instead of extending to avoid any possible concerns for no deal Brexit especially that the fact coronavirus is bigger than Brexit (& that the topic we have talking about for 4 and half half years since the 2016 Brexit referendum), they (the govt, Boris Johnson, Michael Gove and David Frost) foolishly decided that they won’t extend the transition period. Therefore, running down the clock just to put the UK on knife edge on the possibility of crushing out without free trade agreement with the EU27. 

Now at the time of writing (20th December 2020), the talks between the UK and the EU have still not resolved on two topics: Fisheries and level playing field. The talks have been extended plenty of times despite both parties doesn’t want to end negotiations in order to be blamed. 

As the person who voted against Brexit 4 years ago in the referendum given I don’t believe in isolation & that there aren’t any good benefits or positive about the United Kingdom being outside the European Union 27, the last thing everyone needs is the UK leaving the economic trading structures (out of the Single Market and Customs Union) without FTA. The only deal I can think is the EU membership but then, voters who did voted for Brexit 4 years ago in the In/Out referendum think otherwise. Even I accept democracy (& did wanted Brexit to be stopped & the fact it was based on lies and disinformation), I still believe that we really need to move on from the topic because it have really divided the nation so badly. Hopefully someday in the future, the UK could rejoin the EU (depending the existence of both the UK and the EU even parts of the UK who overwhelmingly voted for Remain wants to be in the EU: Scotland and Northern Ireland. For that, I will talk more in details in future blog posts). 

The point is that nobody in the UK and the EU27 wants chaos. Nobody wants economic isolation. After all, the UK’s largest trading partner is the European Union. Yes, European neighbours (given Boris Johnson refers them as “European friends and partners” who doesn’t even bother to try them as friend and partner given both are allies and partners: Mainland/continental Europe and Great Britain). 

So should it be no deal Brexit? Well I hope and pray that shouldn’t be no deal Brexit without EU trade deal. If there is no free trade deal then the government will have no one to blame but themselves. They can try put a blame on the EU but they are the ones who implemented Brexit. Not the EU. No wonder Boris Johnson likes to describe no deal Brexit as “Australian style deal” = WTO which mean tariffs will apply. The EU doesn’t not have trade deal with Australia.

The government are being so unreasonable of what they really want from the Brexit trade talks with Europe, given they prefer no deal if not their main preference that is not reasonable: Canada style deal. 

The UK is not Canada. Yes, the EU has a trade deal with Canada but Eurostar trains and lorries does not go to Canada from European countries so for the UK Brexit government to set out their main objective (Canadian style deal) is totally not reasonable. Reasons: Canadian economy is different than the British economy. On top of that, the economy here is smaller than the UK. That is why we are a small island nation the economies of the 27 European Union member states are bigger than the UK. 

So I hope and pray there should be a deal between the UK and the EU. It doesn’t have to be perfect. It is that there has to be agreement between both parties to agree on in order to resolve outstanding issues including level playing field and fisheries. Otherwise two topics as I mentioned, will continue to dominate on the news which could possibly lead to nowhere & we know what would mean if nothing is concluded. Given we had been reading about latest Brexit developments, analysis and announcements. 

We can understand why Michel Barnier and his EU negotiating team are working hard to reach an agreement with David Frost and UK negotiating team. 

Like I said in the other paragraph, if there is no deal Brexit without EU trade deal the the government who implemented Brexit will have no one to blame but themselves. 

That is all I can say about Brexit & the possible trade deal between the UK and the EU. 11 days until New Year’s Eve 2020 (the end of Brexit transition period) & New Year’s Day 2021 (full effects of Brexit). 

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