Tag Archives: Ireland

In Europe, the Era of Easy Decisions is Over

The EU’s strategic weight in the world will be reduced by the absence of the UK, as the EU is losing a relatively young, diverse and creative member state. 

[John Bruton | Oped Column Syndication]


Make no mistake about it, the latest version of Brexit is a very hard Brexit. The UK Government has abandoned the legally binding commitment in the previous deal to align with EU regulatory standards to the greatest extent possible. That is now dropped in favour of a political aspiration.

The more the United Kingdom diverges from the European Union standards the greater is the likelihood that the EU will have to place tariff and other barriers in the way of UK imports to the EU, and now also to Northern Ireland. The problem will be particularly acute for agricultural goods.

The EU/UK trade negotiation has yet to begin, but I believe it will be both lengthy and difficult. This is a direct result of the “red lines” for Brexit chosen by the UK (no custom union membership, no single market membership and no European Court of Justice jurisdiction). This was a legitimate choice for the UK to make, but the costs of the choice are yet to be revealed and understood. When they are, it will be too late to change course.

Many in the UK say they just want to “get Brexit over with”. The impatience is understandable, but the truth is that agreeing the Withdrawal Treaty will not actually get Brexit “over with”. The additional bureaucracy will be permanent. If there is not to be a no deal crash out, the transition period will have to be much long than the end of 2020, because the trade negotiation will only be in its early stages by then.

The only way to get  the agony of Brexit over with, would be to revoke Brexit. There is little popular support for that, so Brexit will drag on and preoccupy British politics for years.

By choosing a harder Brexit than Mrs May, and agreeing that the controls will be in the Irish sea, Boris Johnson has chosen to prioritize the interests of  hardline Brexiteers in England over the interests of the DUP in Northern Ireland. Such a choice was inherent in Brexit, which is why it will remain a puzzle for historians to discern why the DUP chose to support Brexit with such enthusiasm in the first place.

THE WORLD AFTER BREXIT

I would like to turn now to the world after Brexit, and about the European Union, of which we will continue to be a member and in whose success we will now have a disproportionate interest.

The world has become a much more unpredictable place than it was 10 years ago.

The era of easy decisions may be over.

A European country, Ukraine, has been successfully invaded by it neighbour, Russia, breaking solemn undertakings that had been given. We have been reminded of the importance of defence.

There is widespread evidence of interference in elections and democratic processes by authoritarian regimes in other parts of the world. Voting software is being infected. Campaigns are being hacked. National rules on election spending can be circumvented via the social media.

The United States has created doubt around its defence commitments to Europe. It has walked away from its Kurdish allies in Syria, and Europe was not able to fill the gap, although the refugees from that conflict are more likely to end up in Europe than in America. In fact Europe is dependent on Turkey and North Africa to curb mass migration to the southern shores of the EU.

The EU has not developed a migration policy, which, if properly organised , could bring dynamism to our continent to compensate for the loss of dynamism that will inevitably flow from the ageing of the native European population.

The US is undermining the rules based international order in the field of trade. It is refusing to allow the appointment of replacement judges to the WTO’s appellate court, which will soon lead to that court ceasing to function. This is happening just at the time that our nearest neighbour may find itself relying on the WTO once its post Brexit transition period expires.

THE RISE OF CHINA

China is returning to the dominant position it held in the world economy in the two millennia up to 1800.

It is doing this on the strength of its human capital, not its physical capital. It is educating more engineers that the US and the EU combined.

It is doing it through its competitive and  innovative firms, not through its monopolistic state enterprises. Chinese R and D spending will exceed US Rand D this year and far exceeds EU R and D.

It is ahead of everyone in 5G communications, at the time the world economy is becoming ever more digital.

Chinese firms own Volvo, Pirelli and recently bought the firms supplying robots to the German car industry. EU could not buy the equivalent Chinese firms.

Chinese military spending exceeds that of all EU states combined and is already half that of the US.

If the US thinks it can use trade policy to arrest Chinese development, it is probably making a mistake.

But the US is right to insist on fair competition. China must be treated in the WTO as a developed country, and not get concessions intended for much poorer countries.

In its response to the Chinese challenge, the EU should maintain its robust competition policy and should not try to pick industrial winners from Brussels.

THE RESPONSE OF EUROPE

Europe would be much better placed to defend its own interests, and to act as a balancing power in the world, if the euro functioned as a global reserve currency.

To achieve that, we need to create a Capital Markets Union and complete the Banking Union. This requires a harmonisation of company insolvency rules throughout the EU or the Eurozone.

The Eurozone must have a capacity to cope with localized shocks and to prevent contagion.  We need viable proposals for a Eurozone wide reinsurance of bank deposits, and Eurozone wide reinsurance of the unemployment  benefit systems of member states..

BREXIT IS A SETBACK FOR EUROPE……..STAGNATION MUST BE AVOIDED

There is no doubt but Brexit has been a setback for Europe.

True, the EU had maintained its unity and stability, in stark contrast to the way in which the UK system has been convulsed by the divorce. But that does not take away from the fact that we are losing a relatively young, diverse and creative member state.

The EU’s strategic weight in the world will be reduced by the absence of the UK.

The population of the remaining members of the  EU are, in global terms, relatively elderly, pessimistic and risk averse. This could lead the EU to make big mistakes.

I give some examples of this.

Many member states refuse even to contemplate the amendment of the EU Treaties because of the risk of defeats in referenda. If that remains the attitude, the EU will simply stagnate. Every successful human organisation must have the capacity to change its rules if this is demonstrably necessary. The US is unable to amend its constitution and we can see the problems that has led to.

Unlike the US, the EU has been able to attract and accommodate new member states over the last 50 years. At last week’s Summit, France the Netherlands and Denmark blocked the opening of accession talks with North Macedonia even though that country has done everything the EU asked to qualify, even changing its name, which was a highly sensitive matter.

The fact that this rejectionism was led by President Macron, who makes great speeches about European integration, is particularly disquieting. I hope he changes his mind. Yes, we need tougher means of ensuring that the rule of law in respected in the most rigorous way but that could have been dealt with in the negotiations with North Macedonia, which would have gone on for years any way.

THE SINGLE MARKET

We must defend the integrity of the EU Single Market, at the borders of the European Union and throughout its territory.

Ireland must be seen to be, fully compliant with EU Single Market rules. Otherwise Ireland’s geographic position will be used against it by competitors for the investment.

The EU Single Market is not complete. There is much more to do.

An April 2019 Study “Mapping the Cost of non Europe” estimated that

  • completing the  classic single market would add  713 billion euros to the EU economy.
  • completing Economic and Monetary Union would add a further 322 billion, and
  • completing a digital single market a further  178 billion euros.

A more integrated energy market would save a further 231 billion and a more integrated EU approach to fighting organised crime would be worth 82 billion.

Cross border VAT fraud is costing 40 billion. This will be an area of special concern in regard to traffic between Britain and Northern Ireland.

These are some of the reasons why we must complete the Single Market.

Services account for three quarters of EU GDP.

But  we have been very slow in creating a single EU market for services.

In the field of Services, only one legislative proposal had been adopted during the term of the outgoing Commission, a proportionality test for new regulations on professions.

All other proposals are blocked.

I think that a major obstacle is vested interests in national or regional governments, who do not want to give up power.

By completing the Single Market, the EU can show that it has much more to offer to the world than a post Brexit Britain.

To help complete the Single Market, Ireland should be open to qualified majority voting on energy and climate matters.

We should also be open to carefully defined individual amendments to the EU Treaties if they can be shown to the public to deliver real benefits.

A LEVEL PLAYING FIELD

The existing Withdrawal Agreement protects UK environmental, product and labour standards, in a way that a mere Trade Agreement will never do.

In any trade negotiation with a post Brexit Britain, maintaining a level competitive playing field will be vital.

No subsidies, no cartels, and no undercutting of EU standards must be insisted upon.

Likewise the UK must not be allowed to undercut the EU on worker protection, environmental and product quality standards. The UK will have to set up bureaucracies to devise and enforce UK standards. 200 EU environmental laws will have to be replaced by the UK. Westminster will be busy.

EU WIDE DEMOCRACY

It is over 40 years since the first European Parliament election.

While the  EP elections are hotly contested, the contests are often really about national issues.

A genuine EU wide debate does not take place, because the elections are confined within in national constituencies. An EU “polis” or public opinion has not yet been created.

My own view is that the President of the Commission should be elected separately from the Parliament, using a system of proportional representation (PR).

We must have strong national democracy if we are to have a strong EU, and we must have strong national democracy if we are to have strong states.

There are remarkable differences in the level of confidence people in Europe feel in their own national democracy. According to a recent Pew Poll, 72% of Swedes have confidence in how their national democracy works. Within the Netherlands confidence in their system was  68%, in Poland it was 61% and in Germany 65%.

But , at the other end of the spectrum, only  31% of British, and 32% of Spaniards and Italians had confidence in their own democratic systems.

To build confidence in the EU, we also need to rebuild confidence in democracy itself, at every level of governance.


John Bruton is the former Prime Minister of the Republic of Ireland  (1994-97) and the former European Union Ambassador to the United States (2004-09). He has held several important offices in Irish government, including Minister for Finance, Minister for Industry & Energy, and Minister for Trade, Commerce & Tourism.


Brexit: Irish Border and Britain’s Fantasy of Taking Back Control

The burden of history is weighing heavily on Britain as it battles with its fantasies of “taking back control.”

[Lyndall Stein| Fair Observer]


The Republic of Ireland has been an enthusiastic member of the European Union since 1973, having both gained and given so much from being part of the EU. In the toxic mayhem of Brexit Britain, one question is perhaps more confounding than most, namely how did the Irish backstop issue emerge as a surprising problem? How could Ireland, with a population of just 4.8 million, have the power to impede the mighty British plan to cut the cord to the EU — a union that the Brexiters have reimagined as a cruel oppressive colonizer?

British rule has cast a long shadow over Ireland. Now 27 EU countries, large and small, are defending the Irish Republic’s right to maintain a frictionless and open border with Northern Ireland, as mandated by the historic Good Friday Agreement. Why did no one seem to see the issue of the Irish border spoiling all the little Englander plans for their new small-island world? How did it come to be a surprise, with 800 years of painful history to muse on?

SEA OF BLOOD

The problem is that in looking back to a supposedly glorious past in “taking back control,” the British are looking back at a legacy that was built on a sea of blood and injustice. It is a history of cruelty, exploitation and neglect. During the 16th and 17th centuries, the wholesale colonization of Ireland accelerated as land was stolen from the Irish people, who were punished for using their own language, forbidden to own land and denied any political rights. Catholics experienced discrimination in every aspect of their lives. A system of vassalage reduced the rural poor to tiny plots of barren land, obliged to pay extortionate rents to local and absentee landlords in England.

To this day, the population of Ireland has not recovered from the human destruction of the great famine of 1845-49 when the potato harvest failed. Potatoes constituted the main diet of the impoverished rural communities, and while butter, cheese and wheat continued to be exported, and a wide range of food was available, the rural poor were left to die in terrible circumstances. The landlords showed no mercy for the starving population, the famine largely ignored by the British ruling class. A million died and a million emigrated, with the population falling by 25% within a decade. The pain and horror of this disaster for the people of Ireland was a powerful driver for their determination to fight for independence and still resonates today.

Over many years after the famine, successive waves of resistance and struggle for independence continued, culminating in the 1916 Easter Rising, during which a republic was proclaimed by the leaders of the rebellion against colonial rule. In the British reprisals that followed, the rebel leaders were court-martialed and executed, and hundreds were killed. The severity of the backlash heightened the Irish people’s determination to free themselves and increased support for the republican Sinn Féin party, which won decisively in the general election of 1918, gaining 73 out of a 105 seats reserved for Ireland in for the House of Commons. Sinn Fein were not prepared to take their seats in Westminster — and refuse to this day — and set up an alternative government in Ireland, the first Dail Eireann.

The British government, however, refused to honor the results of the election, and the unionists in the north of Ireland threatened violence. The War of Independence started in 1919, lasting until 1921, when a truce was called. The result was the partitioning of Ireland and the creation of the Irish Free State, which had control of 26 of the island’s 32 counties. In 1948 it was renamed the Republic of Ireland, though this was contended by those who believed the republic should include the whole of Ireland. The six counties of the north  became Northern Ireland. A border with no historical or geographical relevance was created to maintain a unionist majority in the six counties of the wealthier industrialized north, which then continued to be ruled by Britain as Northern Ireland and as part of the United Kingdom.

The unionists then maintained power through the next eight decades by gerrymandering, discrimination in housing, in the workplace and at the ballot box. The most basic principles of democracy and enfranchisement were absent. This was subsequently challenged by the civil rights protests of the late 1960s. The violent response to these peaceful protests, including the murder of innocent civilians in the Bloody Sunday massacre in Derry, Northern Ireland, in 1972, escalated into a decades-long armed conflict between the British government and the Irish Republican Army, the IRA. The Good Friday Agreement was signed in 1998 with immense effort across the whole of Ireland and the United Kingdom, with international mediation. It is founded on key principles including an open border with the republic — which is now threatened by Brexit.

ARBITRARY BORDERS

The policy of imposing arbitrary borders, created to solve the problems caused by colonial rule, was a model the British followed with disastrous results, leaving a legacy of pain and conflict to this day — in places like India, Pakistan, Palestine and Nigeria. Nearly a quarter of the world was once under the extractive and rapacious rule of the British Empire, at its height before the Second World War. The gentle pink of the maps did not show what was stolen, how many died — how culture, history and heritage were denied.

Ireland’s place in the world, its success as an exporter of its rich culture — music, art, literature, technology and expertise — have all been given the opportunity to flower within the EU’s diverse trading block, built on the free movement of people and goods. Dublin has become an international, vibrant and dynamic city, with a lively and youthful culture that challenges the reactionary forces that have dominated Irish politics for so long. A modern, truly European and sophisticated country has emerged from the crushing impact of its past oppression. It has thrown off the shackles of the Catholic Church in recent years, voting for gay marriage and to end the country’s cruel anti-abortion law — the 8th Amendment that prevented all recourse to safe termination even if the price was the death of the mother.

These issues continue to divide neighboring Northern Ireland, with the Democratic Unionist Party (DUP), which currently gives the Conservative government its parliamentary majority in Westminster, still clinging to fundamentalist attitudes toward women and the LGBTQ community. Northern Ireland voted overwhelmingly to remain in the European Union, but the DUP is committed to leaving the EU and remaining in the bitter past. It has been embroiled in corruption scandals like the “cash for ash” debacle that led to the collapse of the power-sharing agreement in Stormont, leaving Northern Ireland without a functioning government for over two years and counting.

Earlier this month, in the absence of a governing body, MPs in Westminster voted to extend rights to abortion and gay marriage to Northern Ireland.

The billions that were promised by Teresa May’s Conservatives to DUP leader Arlene Foster was a hopeless attempt at vote-buying in order to secure a working majority in the UK Parliament. The DUP’s attachment to its failing powers becomes narrow and blinkered in the context of the electoral successes of Sinn Féin across the whole of Ireland and the increasingly progressive changes that have transformed life in the republic.

TAKING, NOT GIVING

The British have a long history of wanting to continue to take from their erstwhile colonies but not being prepared to give back. They benefited, after the destruction of the Second World War, from the Caribbean immigrants who were encouraged to come here to provide desperately needed skills, only to cruelly reject these children of the Windrush generation who drove our buses, nursed our patients and helped rebuild our country. Despite the scandal, the National Health Service is once again recruiting Jamaican nurses to make for the shortfall in staff following the EU referendum vote.

Yes, curry may be Britain’s most popular national dish, but discrimination and the toxic impact of the UK Home Office’s policies have created a “hostile environment” fostered in the six years of Theresa May as secretary of state have continued under Amber Rudd and now Sajid Javid. We have seen so many cases of injustice and abuse, most recently with the withholding of visas to academics from Africa visiting the UK for vital work on issues such as the Ebola epidemic.

The initial stages of the attempt by the Home Office to manage the question of EU residents’ status post Brexit have been marked by incompetence, confusion and uncertainty, bearing the hallmarks of another episode of discrimination and hostility. The building of new barriers, a cornerstone of Brexit, will impoverish the United Kingdom and sow disunity and disorder, unpicking the fabric of our society built on a free movement for all — both for those who have brought their skills and talents from other countries in Europe and for British citizens who have chosen to retire in sunnier places or work in other countries on the continent.

Those of Irish heritage in the UK have flooded their embassy with requests for an Irish passport, allowing holders to continue to travel and work across Europe as free citizens. The rest of us will be in the slow queue, going backward.

The burden of history is weighing heavily on Britain as it battles with its fantasies of taking back control and the bizarre idea that a trading bloc is actually a cruel colonizing power. So many myths have taken hold, with Brexiters embracing victimhood. The real politics and history of the border between the republic and Northern Ireland, created by the colonial past, have somehow been forgotten along with the fragility of a hard-earned peace.

The idea that an Ireland it once totally controlled and exploited having any power over the mighty British bulldog seems an unreasonable reversal of fortunes, feeding the fantasy that Britain can return to its “glorious past” when it ruled the world, building its wealth and strength on the misery of others in countries both nearby and far away.

This article was originally published on Fair Observer.


Lyndall Stein is a leading authority in campaigning, fundraising and communications. She has the experience of working with Reprieve, New Economics Foundation, Care International UK, Concern Worldwide, BOND, Resource Alliance, ActionAid, Terrence Higgins Trust, African National Congress, Care International, The Big Issue, Practical Action, VSO, African Women’s Development Trust, SOS Children’s Villages, and Institute of Fundraising.


 

Irish Border Backstop until Reaching an Agreement on Alternatives

If the British alternatives to backstop are all that good, why can they not live with the backstop until the alternatives are agreed?

[John Bruton | Oped Column Syndication]


Boris Johnson recently said that there is an “abundance” of technical alternatives to the Irish Backstop. He added that “do or die” he would take the UK out of the EU by 31 October.

He seems to believe that he can, between now and the end of October, persuade the EU to have such confidence in these unspecified alternatives that they will not insist on keeping the backstop. This is unrealistic, to put it mildly.

First, he has not put forward any detailed alternative to the backstop.

Secondly, there is no way anything meaningful can be negotiated between the time Mr Johnson would become Prime Minister and the end of October. After its experience with the failure of the UK side to ratify proposals it had previously agreed, there is no disposition on the EU side to take things “on trust” from the UK. There is nothing necessarily personal about this. It is just common prudence.

All sides are agreed that the backstop is only a fall back provision to be used only if an alternative agreed solution cannot be found.

If Boris Johnson was as confident, as appears to be that abundant alternatives exist, he would accept the backstop as an interim step, until his replacement alternatives have been worked upon and agreed.

The fact that he is not prepared to do that makes one suspect that there are no ready or acceptable alternatives that would maintain open borders, and close North/South cooperation based on compatible regulations. The European Commission recently published a document outlining all the areas of life, from health care to transport, where acceptance of common EU standards enables the private and public sectors to cooperate on a cross border basis. Brexit, without a backstop, would tear all this up.

A 216 page document was published recently by Prosperity UK, setting out a possible alternative structure that might replace the backstop. They envisage that their proposal would be added as a protocol to the Withdrawal Agreement. This would require EU consent.

Its authors also admitted that more work was needed on their proposal. It is hardly likely to be ready, and agreed by the EU 27, before 31 October. So it does not solve the immediate problem and, in a sense, Boris Johnson’s recent commitment to leave, come what may, on 31 October means that Prosperity UK’s proposal could only be pursued if Jeremy Hunt becomes Prime Minister.

Prosperity UK proposes to have border related controls — not at the border itself, but on farms and in factories and warehouses instead.

But avoiding physical infrastructure on the border is only part of the Brexit problem.

The other problem is the extra costs, delays and bureaucracy that will be imposed by Brexit on all exchanges across the border within Ireland. These would actually be worse under Prosperity UK proposals, and smuggling will be even more likely than if the controls were on the border itself. And smuggling can be used to finance subversive activities, as we know.

To avoid checks on the border of the compliance with EU standards of food crossing from Northern Ireland, Prosperity UK proposes that, for food standards purposes, Ireland would leave the EU and join a Britain and Northern Ireland food standards union instead!

This idea has zero possibility of being accepted. It is naive. Irish agricultural policy would then be dictated by British interests, something Ireland escaped from when it joined the EU in 1973.

That said, the Prosperity UK report does acknowledge the “supremacy” of the Good Friday Agreement and the peace process. This is a good rhetorical starting point.

But no new thinking is offered as to how this supremacy would be reflected in future British policy in a post Brexit world.

One would have thought that those who do not like the backstop would come forward with new and interesting proposals to deepen North/South cooperation, and East/West cooperation, to compensate for the disruption that will inevitably flow from Brexit. That is where British negotiators should be putting the emphasis now. The idea that the Belfast Agreement structures can be frozen, by a refusal by the Democratic Unionist Party and/or Sinn Fein to work together, is not acceptable.

But at a deeper level, it seems that there is still no consensus in Britain as to the sort of relationship it wants with the EU, and what trade offs it is prepared to make to negotiate such a relationship. It seems that public opinion in the UK has not yet absorbed what leaving the EU means.

It wants the freedom but not to accept the costs.


John Bruton is the former Prime Minister of the Republic of Ireland  (1994-97) and the former European Union Ambassador to the United States (2004-09). He has held several important offices in Irish government, including Minister for Finance, Minister for Industry & Energy, and Minister for Trade, Commerce & Tourism.


Preparations for “No Deal“ Brexit

European Commission’s Paper sets out the preparations necessary for Brexit without a deal.

[John Bruton | Oped Column Syndication]


The European Commission has produced a paper setting out the preparations that will have to make for a “No Deal“ Brexit, and what would have to done to deal with it.

[Note: Author has extracted some of the interesting quotations from the paper. It is quite explicit in some respects, but those who say there will be no hard border in Ireland in any circumstances will need to seek further clarification from the Commission.]

Border checks

The Commission paper says “Member States, including national authorities, will play a key role in implementing and enforcing EU law viz-à-viz the United Kingdom as a third country. This includes performing the necessary border checks and controls and processing the necessary authorizations and licences.”

It adds “The Commission is working with Member States to coordinate the measures they adopt to ensure that contingency preparations are consistent within the European Union,” and says that “Member States should refrain from bilateral discussions and agreements with the United Kingdom, which would undermine EU unity”.

The Irish case

The Commission paper recognizes that Ireland has a particular problem with Brexit.

It says its stands ready to  explore pragmatic and efficient support solutions, in line with EU State aid law and that it “will support Ireland in finding solutions addressing the specific challenges of Irish businesses.”

But it does not say that Ireland would be exempt from applying the EU Customs controls on the border between Ireland and Northern Ireland.

This omission does not seem to tally with statements being made by some in Ireland.

It is unclear what sort of help the Commission will be able to give Irish businesses.

Seventy-eight detailed papers available

In order to assist stakeholders in their preparation for the withdrawal of the United Kingdom, the Commission has published 78 detailed sectoral information notices guiding individual industries on the steps to be taken.

It would be useful to scrutinize these papers as to their application to business between Ireland and Northern Ireland.

Contingency measures in the immediate aftermath of a No Deal Brexit will in general have to  be “temporary in nature, and should in principle not go beyond the end of 2019”.

Air transportation disruptions

In the area of air transport, the withdrawal of the United Kingdom, without any arrangement in place at the withdrawal date, and without operators concluding the necessary and possible alternative arrangements, will lead to abrupt interruptions of air traffic between the United Kingdom and the European Union, due to the absence of traffic rights and/or the invalidity of the operating licence or of aviation safety certificates.

Regarding traffic rights, the Commission says it will propose measures to ensure that air carriers from the United Kingdom are allowed to fly over the territory of the European Union, make technical stops (e.g. refueling without embarkation/disembarkation of passengers), as well as land in the European Union and fly back to the United Kingdom. This will create a really difficult situation for UK airlines

Road transport difficulties

Regarding road transport, in case of no deal scenario, as of the withdrawal date, UK hauliers will have market access rights limited to the permits offered under the European Conference of Ministers of Transport (ECMT) which would allow for considerably less traffic than what currently takes place between the Union and the United Kingdom.  This will have serious implications for Irish businesses using UK hauliers to get goods to the continent.

In the case of a no deal scenario, as of the withdrawal date, goods entering the European Union from the United Kingdom will be treated as imports and goods leaving the European Union to the United Kingdom will be treated as exports.

Collection of duties and taxes

The Commission says that all relevant EU legislation on imported goods and exported goods will apply, including the levy of certain duties and taxes (such as customs duties, value added tax and excise on importation), in accordance with the commitments of the European Union under the rules of the World Trade Organisation.

The need for customs declarations to be presented to customs authorities, and the possibility to control shipments will also apply.

The Commission paper does not say that the border in Ireland would be exempt from this. This will need to be clarified.

The Commission calls on Member States to take all necessary steps to be in a position to apply the Union Customs Code and the relevant rules regarding indirect taxation on 30 March 2019, in case of a no deal scenario, to all imports from and exports to the United Kingdom. Again there is no explicit, or implicit, exemption for the EU border in Ireland.

Customs authorities may issue authorizations for the use of facilitation measures provided for in the Union Customs Code, when economic operators request them, and subject to relevant requirements being met.

Ensuring a level-playing field and smooth trade flows will be particularly challenging in the areas with the densest goods traffic with the United Kingdom. The Commission is working with Member States to help find solutions in full respect of the current legal framework.

The paper also deals with financial services and with residency rights for UK citizens living in EU countries.

Animal and Plant health checks will be necessary

The Commission says that, in the event of a “No Deal” goods will have to undergo sanitary and phytosanitary controls by Member States authorities “at Border Inspection Posts, which is a matter of Member State responsibility”.

Ambiguity about how all this might apply on the Irish border does not help businesses with their contingency planning.


John Bruton is the former Prime Minister of the Republic of Ireland  (1994-97) and the former European Union Ambassador to the United States (2004-09). He has held several important offices in Irish government, including Minister for Finance, Minister for Industry & Energy, and Minister for Trade, Commerce & Tourism.


 

Harder the Brexit, Harder the Resolution of Irish Border Problem

The proposals the United Kingdom government is making for its future relationship with the European Union will run into a number of obstacles in coming days.

[John Bruton | Oped Column Syndication]


The harder the Brexit, the harder will be the resolution of the Irish border problem.

In a Joint Report of 8 December 2017, the United Kingdom (UK) agreed to respect Ireland’s place in the EU and that there would be no hard border in Ireland. This was to apply “in all circumstances, irrespective of any future agreement between the European Union (EU) and the UK”.

The further the UK negotiating demand goes from continued membership of the EU, the harder it will be for it to fulfill the commitments it has given on the Irish border in the Joint Report.

If the UK government had decided to leave the EU, but to stay in the Customs Union, the Irish border questions would have been minimized.  But the government decided to reject that, because it hoped to be able to make better trade deals with non EU countries, than the ones it has as an EU member.

If the UK government had decided to leave the EU, but  to join the European Economic Area (the Norway option),this would also have minimized the Irish border problems. The government rejected that because it would have meant continued free movement of people from the EU into the UK .

In each decision, maintaining its relations with Ireland was given a lower priority than the supposed benefits of trade agreements with faraway places, and being able to curb EU immigration.

The government got its priorities wrong.

Future trade agreements that may be made with countries outside the EU will be neither as immediate, nor as beneficial to the UK, as maintaining peace and good relations in the island of Ireland. The most they will do is replace the 70 or more trade agreements  with non EU countries that the UK already has as an EU member and will lose when it leaves.

EU immigration to the UK, if it ever was a problem, is a purely temporary and finite one.

Already the economies of central European EU countries are picking up, and, as time goes by, there will be fewer and fewer people from those countries wanting to emigrate to the UK(or anywhere else) to find work.  These countries have low birth rates and ageing populations, and thus a diminishing pool of potential emigrants.

Solving the supposed EU immigration “problem” is less important to the UK, in the long run, than peace and good relations in, and with, Ireland.

If, as is now suggested, the UK looks for a Canada or Ukraine style deal, the Irish border problem will be even worse. Mrs May has recognized this and this is why she rejects a Canada style deal..

A Canada style deal would mean the collection of heavy tariffs on food products, either on the Irish Sea, or on the Irish border. Collecting them on the long land border would be physically impracticable, so the only option would be to do it on the Irish Sea.

The all Ireland economy, to which the UK committed itself in the Joint Report, would be irrevocably damaged. The economic foundation of the Belfast Agreement would be destroyed.

It is time for the Conservative Party to return to being conservative, and conserve the peace it helped build in Ireland on the twin foundations of the Belfast Agreement and the EU Treaties.  Conservative Party members might remember that, without John Major’s negotiation of the Downing Street Declaration in 1993, there would have been no Belfast Agreement in 1998.

The proposals the UK government is making for its future relationship with the EU will run into a number of obstacles in coming days.

The first will be that of persuading the EU that the UK will stick to any deal it makes.

Two collectively responsible members of the UK Cabinet, Michael Gove and Liam Fox, have both suggested that the UK might agree to a Withdrawal Treaty on the basis of the Chequers formula, but later, once out to the EU, abandon it, and do whatever it liked. This would be negotiating with the EU in bad faith. Why should the EU make a permanent concession to the UK, if UK Cabinet members intend to treat the deal as temporary?

The second problem relates to the substance of the UK proposals.

They would require the EU to give control of its trade borders, and subcontract control to a non member, the UK. While the UK proposals envisage a common EU/UK rule book for the quality of goods circulating, via the UK, into the EU Single Market, the UK Parliament would still retain the option of not passing some of the relevant legislation to give effect to it. The UK would not be bound to accept the ECJ’s interpretation of what the common rules meant. Common interpretation of a common set of rules is what makes a common market, common.

Mrs May is not the only Prime Minister with domestic constraints.  Creating a precedent of allowing the UK to opt into some bits of the EU Single Market, but not all, would create immediate demands for exceptions from other EU members, and from Switzerland and Norway (who pay large annual fees for entry to the EU Single market). It would play straight into the hands of populists in the European Parliament elections, which take place just two months after the date the UK itself chose as the end of its Article 50 negotiation period.

It does not require much political imagination to see that aspects of the UK proposal, if incorporated in a final UK/EU trade deal in a few years time, would be a hard sell in the parliaments of some of the 27 countries. We must remember that all that would be needed for the deal to fail, would be for just one of them to say NO.

Remember how difficult it was to get the Canada and Ukraine deals through.

Article Source: Oped Column Syndication.


John Bruton is the former Prime Minister of the Republic of Ireland  (1994-97) and the former European Union Ambassador to the United States (2004-09). He has held several important offices in Irish government, including Minister for Finance, Minister for Industry & Energy, and Minister for Trade, Commerce & Tourism.