Tag Archives: Customs Union

Davis-May correspondence on Brexit

The UK media published two letters, the exchange of opinions over Brexit strategy of the resigned top negotiator David Davis and the response of Prime Minister Theresa May.

The text of the letter David Davis sent the Prime Minister, tendering his resignation as Secretary of State for Exiting the European Union below:

Dear Prime Minister,

As you know there have been a significant number of occasions in the last year or so on which I have disagreed with the Number 10 policy line, ranging from accepting the Commission’s sequencing of negotiations through to the language on Northern Ireland in the December Joint Report. At each stage I have accepted collective responsibility because it is part of my task to find workable compromises, and because I considered it was still possible to deliver on the mandate of the referendum, and on our manifesto commitment to leave the Customs Union and the Single Market.

I am afraid that I think the current trend of policy and tactics is making that look less and less likely. Whether it is the progressive dilution of what I thought was a firm Chequers agreement In February on right to diverge, or the unnecessary delays of the start of the White Paper, or the presentation of a backstop proposal that omitted the strict conditions that I requested and believed that we had agreed, the general direction of policy will leave us in at best a weak negotiating position, and possibly an inescapable one.

The Cabinet decision on Friday crystallised this problem. In my view the inevitable consequence of the proposed policies will be to make the supposed control by Parliament illusory rather than real.

As I said at Cabinet, the “common rule book” policy hands control of large swathes of our economy to the EU and is certainly not returning control of our laws in any real sense.

I am also unpersuaded that our negotiating approach will not just lead to further demands for concessions.

Of course this is a complex area of judgement and it is possible that you are right and I am wrong. However, even in that event it seems to me that the national interest requires a Secretary of State in my Department that is an enthusiastic believer in your approach, and not merely a reluctant conscript. While I have been grateful to you for the opportunity to serve, it is with great regret that I tender my resignation from the Cabinet with immediate effect.

Yours ever
David Davis __________________________________ signature

 The full text of Theresa May’s reply to David Davis below:

Dear David,

Thank you for your letter explaining your decision to resign as Secretary of State for Exiting the European Union.

I am sorry that you have chosen to leave the Government when we have already made so much progress towards delivering a smooth and successful Brexit, and when we are only eight months from the date set in law when the United Kingdom will leave the European Union.

At Chequers on Friday, we as the Cabinet agreed a comprehensive and detailed proposal which provides a precise, responsible, and credible basis for progressing our negotiations towards a new relationship between the UK and the EU after we leave in March. We set out how we will deliver on the result of the referendum and the commitments we made in our manifesto for the 2017 general election:

1. Leaving the EU on 29 March 2019.
2. Ending free movement and taking back control of our borders.
3. No more sending vast sums of money each year to the EU.
4. A new business-friendly customs model with freedom to strike new trade deals around the world.
5. A UK-EU free trade area with a common rulebook for industrial goods and agricultural products which will be good for jobs.
6. A commitment to maintain high standards on consumer and employment rights and the environment.
7. A Parliamentary lock on all new rules and regulations.
8. Leaving the Common Agricultural Policy and the Common Fisheries Policy.
9. Restoring the supremacy of British courts by ending the jurisdiction of the European Court of Justice in the UK.
10. No hard border between Northern Ireland and Ireland, or between Northern Ireland and Great Britain.
11. Continued, close co-operation on security to keep our people safe.
12. An independent foreign and defence policy, working closely with the EU and other allies.

This is consistent with the mandate of the referendum and with the commitments we laid out in our general election manifesto: leaving the single market and the customs union but seeking a deep and special partnership including a comprehensive free trade and customs agreement; ending the vast annual contributions to the EU; and pursuing fair, orderly negotiations, minimising disruption and giving as much certainty as possible so both sides benefit.

As we said in our manifesto, we believe it is necessary to agree the terms of our future partnership alongside our withdrawal, reaching agreement on both within the two years allowed by Article 50.

I have always agreed with you that these two must go alongside one another, but if we are to get sufficient detail about our future partnership, we need to act now. We have made a significant move: it is for the EU now to respond in the same spirit.

I do not agree with your characterisation of the policy we agreed at Cabinet on Friday.

Parliament will decide whether or not to back the deal the Government negotiates, but that deal will undoubtedly mean the returning of powers from Brussels to the United Kingdom.

The direct effect of EU law will end when we leave the EU. Where the UK chooses to apply a common rulebook, each rule will have to be agreed by Parliament.

Choosing not to sign up to certain rules would lead to consequences for market access, security co-operation or the frictionless border, but that decision will rest with our sovereign Parliament, which will have a lock on whether to incorporate those rules into the UK legal order.

I am sorry that the Government will not have the benefit of your continued expertise and counsel as we secure this deal and complete the process of leaving the EU, but I would like to thank you warmly for everything you have done over the past two years as Secretary of State to shape our departure from the EU, and the new role the UK will forge on the world stage as an independent, self-governing nation once again.

You returned to Government after nineteen years to lead an entirely new Department responsible for a vital, complex, and unprecedented task.

You have helped to steer through Parliament some of the most important legislation for generations, including the European Union (Notification of Withdrawal) Act 2017 and the European Union (Withdrawal) Act 2018, which received Royal Assent last week.

These landmark Acts, and what they will do, stand as testament to your work and our commitment to honouring the result of the referendum.

Yours sincerely,

Theresa May__________________________ singanture

Hammond: clarity on customs is top priority

“Britain is leaving the political institutions of the EU; but it is not leaving Europe, and British prosperity is, and always will be, closely bound to European prosperity,” – said  Chancellor of the Exchequer Philip Hammond, addressing the European Business Summit in Brussels (24/05/2018) – “So Europe’s success – and the success of the Euro as a currency – is very strongly in Britain’s interest, and we will not do anything which jeopardises that success”.

“Our economy is recognisably a European-style economy with high levels of consumer and worker protection, a highly developed social welfare system and strong environmental standard, and it is the clear wish of the British people, regularly demonstrated, to keep it that way as we build a new deep and special partnership with the European Union” – Hammond continued.

“We have made significant progress since Article 50 was triggered, just over a year ago both in our own internal debate about what Brexit should mean, and in our negotiation with the EU”.

“I know that for business getting clarity on our future customs relationship is a top priority, and so it should be a top priority for European governments too” – Hammond underlined.

European Business Summit is an organization creating  and supporting networking and debating events in Brussels, including  the annual European Business Summit #EBS2018, with a principal goal to bring business and politics together and stimulate debate on the most challenging European issues of the moment. The latest event took place in d’Egmont Palace, Brussels on 23-24 May 2018.

Johnson defines Customs partnership as”crazy”

Britain’s proposal for a customs partnership with the European Union after Brexit is “crazy“, foreign Secretary Boris Johnson said, deepening divisions in the government of Prime Minister Theresa May. He criticised Prime Minister Theresa May’s compromise policy as a “crazy system” that would leave the UK “locked in the tractor beam of Brussels”, in an interview with Daily Mail newspaper ahead of his visit to Washington.

“If the EU decides to impose punitive tariffs on something the UK wants to bring in cheaply there’s nothing you can do” – Johnson continued.

“That’s not taking back control of your trade policy, it’s not taking back control of your laws, it’s not taking back control of your borders and it’s actually not taking back control of your money either, because tariffs would get paid centrally back to Brussels.”

The words got positive assessment of Nigel Farage, considering them “sensible”.

Johnson said the trade deal with the USA in not attainable if the UK remained “in the lunar pull of Brussels”. He clarified  that Americans wanted to see “

May rejects ambivalence over leaving Customs Union

British Prime Minister Theresa May said on her government was firm on its proposals to facilitate trade with the European Union after Brexit, rejecting suggestions that plans to quit the Customs Union were again dividing her party.

“We’re absolutely clear that we are leaving the customs union and we will be free to strike our own trade deals around the world”  – Prime Minister spokesman said.

May perceives Brexit as ‘new beginning’

British Prime Minister Theresa May explained her concept of Brexit a unique engagement, different from any free trade agreement in the world, explaining the European Union leadership it is in “shared interest”. She also underlined that the existing models are not suitable: both Norway and Canada agreements with the EU have implications that can not be accepted by the UK, for example free movement of people Norway welcomes.

Prime Minister said she is confident about reaching a right deal in interest of both the UK and the EU, and she called for perceiving Brexit not as an end, but as a new beginning.  May underlined that the UK is not going to re-establish a ‘hard’ border between Northern Ireland, and the Republic of Ireland, but to reach the best outcome all three interested parties need to engage in negotiation, including the European Commission. The UK is definitely leaving Customs Union, but is looking for ‘Customs Partnership’ with the EU27 to continue trade as frictionless as possible. The speech contained a list of key arrangements to be made from co-operation with EurAtom to Broadcasters, addressed specific needs of small and businesses, and even looked into future development of technologies as computing and robotics – the know-how  Britons are ready to share with their European neighbours.

The confidence of Prime Minister to reach an Article 50 agreement raised criticism of Brexiteers, who are still sceptical about the perspective to reach a fair deal with the EU27, believed to be determined to make a negative example from Brexit to prevent the other member state to follow the way. Brexiteers insist no deal is better, than a bad deal, so the failure to reach an agreement should not be discarded.

Trade secretary against remaining in Customs Union

The UK trade secretary Liam Fox intends to warn about implications of the remaining in a customs union with the European Union after Brexit, he claims that it will impact the economy in a negative way calling the prospect “a sellout of Britain’s national interests.”

The criticism of the Liam Fox is aimed at the Labor, promoting closer ties with the EU after Brexit:

Bishop: Customs Union not compatible with free trade deal

Britain and Australia would not be able to negotiate a bilateral trade deal if Britain decides to stay in the European Union’s customs union after Brexit, Australian Foreign Minister Julie Bishop said on Monday (19/02/2018).

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