Brexit News for Monday 21 August

Brexit News for Monday 21 August
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David Davis warns EU that the ‘clock is ticking’ and we must talk about trade alongside exit agreements to reach a deal in time and make talks smoother

David Davis has given a stark warning to EU negotiators that we MUST talk about trade and our exit terms now – or waste precious time discussing the same issues twice. The Brexit Secretary spoke out ahead of publishing five new papers laying out more details of Government plans later this week. – The Sun on Sunday

  • The UK is piling pressure on the EU to shift the focus of Brexit negotiations away from the terms of divorce – Bloomberg
  • UK to publish Brexit papers on goods and documents – Politico
  • UK hopes of EU trade talks this autumn ‘will be dashed’, says Slovenian PM – Observer

David Davis: The UK-EU Brexit talks must take a big leap forward. And Britain is ready to do it

All along, the UK has argued that talks around our withdrawal cannot be treated in isolation from the future partnership we want. In fact, I firmly believe the early rounds of the negotiations have already demonstrated that many questions around our withdrawal are inextricably linked to our future relationship. Nowhere is that point truer than on the question of Northern Ireland. It is simply not possible to reach a near-final agreement on the border issue until we’ve begun to talk about how our broader future customs arrangement will work. – David Davis MP for the Sunday Times (£)

Clean Brexit offers ‘£135bn annual boost’ to economy

A “hard” Brexit is “economically much superior to soft” argues Prof Patrick Minford, lead author of a report from Economists for Free Trade. He says eliminating tariffs, either within free trade deals or unilaterally, would deliver huge gains. – BBC News

  • Households will be £40 a week richer post-Brexit as UK imports tariff-free goods and increases output, experts claim – Sun on Sunday
  • This group of pro-Brexit economists says leaving the EU will add £135bn to economy – City A.M.
  • Trust the man on the right side of history after Patrick Minford says Britain’s economy is actually set for a Brexit boost – Sun on Sunday says
  • Hard Brexit gains UK economy £135 Billion – more than any other arrangement – Tim Worstall for Forbes
  • Brexit Britain can give its partners the right idea by getting naked — our tariffs should go first – Jamie Whyte, IEA Research Director, for the Telegraph (£)

> Kevin Dowd on BrexitCentral: A unilateral free trade policy would be hugely beneficial for Brexit Britain

> David Paton on BrexitCentral: It’s time to ditch Project Fear for Project Prosperity and embrace the Brexit boom

> On BrexitCentral’s YouTube: Patrick Minford: leaving the EU without a trade deal would bring a 135-billion-pound boost

UK to propose new post-Brexit court to oversee relations with EU

Britain will this week propose a “new and unique” court to oversee post-Brexit relations between the UK and the EU, as Theresa May’s government tries to force the pace of exit talks. Brexit secretary David Davis will float the creation of a beefed-up version of the European Free Trade Association court, which deals with Iceland, Liechtenstein and Norway in their relations with the EU single market. – FT (£)

  • Leading European judge promotes plan for UK access to single market after Brexit – Times (£)
  • Ex-British legal chief claims May’s red line on ECJ ‘foolish’ – Politico
  • Control and compromise – Times editorial

Crawford Falconer takes up post as UK’s top trade negotiator…

The man in charge of negotiating the UK’s trade deals once Brexit is finalised, starts his job this week. Crawford Falconer will take up the post of chief trade negotiation adviser at the Department for International Trade. Leaving the single market would mean the UK would have to establish new bilateral trade agreements, but cannot formally do so until after Brexit. – BBC News

…as Liam Fox suggests Britain could strike a post Brexit free trade deal without needing the direct approval of Scottish and Welsh governments…

Britain could strike post-Brexit free trade deals without the approval of the Scottish and Welsh governments under proposals circulated among Cabinet ministers by International Trade Secretary Liam Fox. Dr Fox has written to colleagues setting out four options for devolved governments’ role in negotiating free trade agreements after the UK leaves the European Union, a Whitehall source confirmed. – Daily Mail

…while Welsh First Minister Carwyn Jones says trade deals need UK-wide consensus

Post-Brexit trade deals must have the “broad consensus” of all four UK nations, First Minister Carwyn Jones has said. It follows reports the International Trade Secretary Liam Fox has suggested devolved administrations should not be able to veto trade deals. Plaid Cymru said no deal should be signed without the “endorsement” of the Welsh Government. – BBC News

Majority of UK public backs Brexit ‘transition period’ and reject a second referendum, poll finds

A sizeable majority of the British public believes that the UK’s departure from the European Union should be followed by “a transition period”, according to an Opinium/Observer poll. While almost half (49%) of those asked still believe that there should not be a second referendum once the terms of departure are clear, enthusiasm for Brexit appears to have dipped slightly, while trust in the Conservatives to lead negotiations has dropped from 39% in June to 33% in August. – Observer

EU migrants barred from claiming benefits after Brexit as Theresa May revives David Cameron pledge

EU migrants will be barred from claiming in-work benefits unless they have been employed for at least four years after Brexit under plans to revive a pledge by David Cameron. The Telegraph understands that ministers are examining plans to bar migrants who arrive in the UK after March 2019 from claiming in-work benefits. – Telegraph

  • Surge brings 3.3m workers from outside the EU – The Times (£)

Food and Drink Federation (FDF) revealed that UK exports rose by £10.2 billion, or 8.5 per cent…

Figures from the Food and Drink Federation (FDF) revealed that UK exports rose by £10.2 billion, or 8.5 per cent, during a record first half. Whisky, salmon and beer were the most popular exports and the top three export destinations remained Ireland, France and the United States. – Times (£)

…as ‘Brexit effect’ sees biggest boom in US tourists visiting the UK since the 1980s

The “Brexit effect” has seen the biggest increase in US tourists coming to the UK since the 1980s, official data shows. Figures from the Office for National Statistics revealed that the past six months have seen a 25pc rise in visitors from North America compared to the first half of last year. – Telegraph

Philip Hammond and Michael Gove get into a fight over post-Brexit fishing policy

A fresh Cabinet Brexit split has emerged after Michael Gove and Philip Hammond clashed over whether to use fishing rights as a negotiating pawn. The UK will take back full control over who can fish in thousands of miles of its territorial waters on our EU exit in March 2019. – The Sun

Crawford Falconer: Brexit Britain can drive the world towards freer trade, and with it peace and prosperity

Setting up a new Department for International Trade just over a year ago is testament to how deeply committed the UK is to harnessing the huge economic benefits of free trade. It marks the UK government’s clear intent to take advantage of the wealth of opportunities for growing our trade relationships around the world. For the first time in over 40 years we will be able to shape the UK’s own trade policy and take advantage of the forecast 90 per cent of global trade that will be conducted outside of the EU over the next 20 years. – Crawford Falconer, UK Chief Trade Negotiation Adviser, for the Telegraph (£)

  • Finally, some refreshing optimism on Brexit and free trade – Telegraph editorial

Shanker Singham: Six key steps that will allow free trade to spread prosperity for all

At the Legatum Institute, we made a series of recommendations in our earlier paper, “Brexit and the Supply Chain”. While there has been much focus on arrangements immediately after we exit the EU, the most important thing right now is that we stop negotiating with ourselves and engage with our European partners on the ultimate free-trade agreement with the EU. – Shanker Singham for the Telegraph (£)

Dominic Lawson: Bad news, anti-Brexiters: things are looking up

There was more bad news last week. The unemployment rate fell to the lowest recorded figure since 1975. There was an increase in the proportion of the workforce in secure full-time employment, and a rise in the number of jobs taken up here by people from long-established EU states such as Germany, Italy, Spain and France (weren’t they supposed to be fleeing?). – Dominic Lawson for the Times (£)

Roger Bootle: A ‘cliff-edge’ Brexit is just another name for Project Fear

The referendum campaign continues. Proposals for transition periods and the various scare stories concerning a “cliff-edge” are really Project Fear in disguise. The British public risks being misled by the establishment – all over again. Moreover, as Brexit shenanigans continue within the Conservative Party, you could be forgiven for believing that the most serious issue at stake is the self-interest of those who are positioning themselves to become the next Prime Minister. – Roger Bootle for the Telegraph (£)

Francis Maude: Tories must embrace capitalism to prepare Britain for Brexit and reconnect with the young

Yes we have to negotiate free trade agreements – neither the walk in the park Brexiteers boast nor the eight-year nightmare claimed by Remainers. But if we are “taking back control” we need to use it to make the UK unequivocally the best place in the world for people and businesses to put their money, ideas, talent and energy to work. – Francis Maude for the Telegraph

Christian May: At this stage, the UK and EU can’t afford to delay trade talks

After a summer dominated by hyped-up talk of cabinet divisions and a Brexit in peril, plans are beginning to emerge and a strategy is starting to take shape. That it took over a year to reach this point is lamentable evidence of a civil service caught with its trousers down by the referendum result and, it must be said, of a Leave campaign so obsessed with the ‘what’ that it paid little attention to the ‘how’. – Christian May for City A.M.

Matthew Lynn: Leave voters made the right decision – Brexit is helping to rebalance the UK economy

It turns out the Leave voters were perfectly smart to make the decision they did. Despite all the warnings from Project Fear, they could see clearly that they weren’t getting much from EU membership. And they are being proved right. As for the Remain areas, they are starting to fall behind – which may explain why many of them are still so moany. – Matthew Lynn for the Telegraph (£)

Bernard Jenkin: At last, the outlines of a quick and clean Brexit are emerging

It has taken some time for the British establishment to accept there will be no so-called soft Brexit at the end of the process of leaving the EU. The reason is simple: the EU won’t have it. Nor will the large majority of people in the UK who now accept we must implement the fundamental principles behind the Leave campaign — to take back control of our borders and laws. – Bernard Jenkin MP for the FT (£)

Gerard Lyons: A short transition can help Britain make the best of Brexit

The government’s latest plan carries with it the risk that negotiations turn the bridge into a tunnel with no light at the end. Happily, David Davis, the Brexit secretary, seems well aware of the risks and opportunities. I am confident he will navigate the right route. – Gerard Lyons for the FT (£)

Daniel Hannan MEP: Continuity Remainers are so determined to hate Brexit that they’ve become detached from reality

The anguish surrounding Brexit cannot be explained in purely political terms. Its cause is at least as much psychological. Some Remainers – a minority, but not an insignificant one – are so determined to see bad news that they are becoming unhinged. Like King Lear, they cannot adjust to the sudden loss of their long dominion. – Daniel Hannan MEP for the Telegraph (£)

David Blake: The City must prepare for an £135bn per year Brexit boost

Leaving the EU will enable the City of London to reclaim its mantle as the world’s financial powerhouse. It will give the UK the freedom to design a more attractive regulatory framework based on global standards. Not only would such a model attract business and liquidity to the UK, it would liberate financial services from the burden and increasing uncertainty of EU regulation. – Professor David Blake for City A.M.

Joseph Hackett: The EU should pay for its own agencies

It is no secret the EU, facing a serious budget shortfall without Britain’s contributions, wants to squeeze as much money as possible out of the British taxpayer before Brexit day. Brussels has demanded Britain agree to pay a huge ‘Brexit Bill’ for various EU spending commitments as a precondition for entering trade talks, demonstrating just how keen it is to get its hands on even more of our money – if possible, even after Brexit. – Joseph Hackett for Reaction

Dia Chakravarty: Sir Vince Cable has got Brexit voters wrong. We are the true liberals now

In my greener days, I was a Liberal Democrat supporter. Growing up in a religiously conservative Bangladesh, with its heavily managed economy, instilled in me the importance of liberalism. Quite simply, when I moved to this country as a not especially political but certainly opinionated teenager, the other two options – the (then) socially conservative Tories and the (still) statist Labour Party – didn’t impress. – Dia Chakravarty for the Telegraph (£)

Charlie Elphicke: The EU would be mad to spurn our offer of tariff-free trade and should shake on post-Brexit deal — or be stuck with a £13.2bn bill

This week our Government offered Brussels the deal of the decade. They would be crazy to turn it down. The offer to continue tariff-free trade after we leave Europe is a great deal for the EU. For tariffs would hit Europe’s exports to us twice as hard as they would hit our exports to them. Today we trade as part of the EU’s Customs Union. – Charlie Elphicke MP for The Sun on Sunday

Matt Ridley: Best hope for free trade is to have principles

Why does the European Union raise a tariff on coffee? It has no coffee industry to protect so the sole effect is to make coffee more expensive for all Europeans. Even where there is an industry to protect, protectionism hurts far more people than it helps. Last October the EU surreptitiously quintupled the tariff on imported oranges to 16 per cent to protect Spanish citrus producers against competition from South Africa and punish the rest of us. It imposes a tax of 4.7 per cent on imported umbrellas, 15 per cent on unicycles and 16.9 per cent on sports footwear. – Matt Ridley for the Times (£)

Charlie Cooper: Return of the restive Remainers

Pro-EU Labour MPs are seeking common cause with potential Conservative rebels, and are reportedly planning an amendment to the EU Withdrawal Bill (aka the Repeal Bill) requiring the U.K. to rejoin the European Economic Area during the Brexit transition. Cross-party efforts to soften Brexit were strengthened last month with the formation of the All-Party Parliamentary Group (APPG) on EU Relations, spearheaded by Labour’s Chuka Umunna and the Conservatives’ Anna Soubry. – Charlie Cooper for Politico

Richard Tice: Brexit will bring us closer to the antipodean cousins we wrongly cold-shouldered

When Napoleon Bonaparte brought France under his control a little over two hundred years ago, he came up with a simple plan for dealing with the pesky British, who were holding out against domination by a foreign power. He devised the Continental System, an effective blockade on Britain, preventing them from trading with Europe. He felt sure this would lead to Britain’s economic collapse. – Richard Tice for the Telegraph

Brexit comment in brief

  • UK and EU remain friends in a dangerous world – Telegraph view
  • It is vital for Britain’s future prosperity that we cut a trade deal with EU — and it would save pointless clashes with Brussels if Mr Barnier cottoned on to this – The Sun says
  • Time is running out for EU to do a good deal with us over Brexit — as Europe risks signing its own death warrant – Trevor Kavanagh for The Sun

Brexit News in brief

  • The UK spends almost double the rest of the EU combined on large procurement contracts – TaxPayers’ Alliance
  • Big Ben should bong Britain out of European Union, Brexit-backing MPs say – Evening Standard
  • EU membership by stealth: Britain to be tied to European Court ‘in all but name’ – Express
  • Snap backer to invest millions in UK currency unicorn Transferwise – Times (£)
  • Theresa May’s plans for post-Brexit trade deal with the US could be disrupted amid fears Donald Trump will be impeached – Sun on Sunday