Category Archives: Economic

Britain, Economic, European Union, Government, Politics

Project Fear? Countries are lining up to trade with UK

BREXIT

NEARLY all of the countries that Remain campaigners said would not want to trade with Britain post-Brexit have called for deeper trade links.

Of the 111 countries that ‘Project Fear’ campaigners said would not want a deal if the UK chose to leave the EU, 105 have signalled that they want to work with Britain.

In the build-up to last year’s EU referendum, the official Britain Stronger in Europe campaign claimed that the countries would have ‘moved on’ after Brexit.

But campaign group Change Britain found that eight nations have ‘enthusiastically’ asked for a free-trade deal with the UK, 97 have said they want a deal in principle, and just six have not yet said whether they are interested in a deal.

Former trade minister, Lord Jones, a Change Britain supporter, said: ‘This report demonstrates that the pro EU Project Fear campaign was nonsense. The UK has the world’s fifth largest economy, the world’s leading financial centre and many of its best companies, innovators and universities. The rest of the world is queuing up to do trade deals with us.’

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Britain, Economic, European Union, Government, Politics, Society

Brexit: The Single Market & Related Options

BREXIT – ACCESS TO MARKETS

Single-Market

Brexit Briefing: The Single Market

AS Brexit negotiations begin to extricate the UK from the European Union, one of the biggest factors ministers will have to contend with is the issue of the single market. The EU has said that Britain will not be allowed to benefit from the free-trade arrangements once it has left the bloc, a major part of why the EU exists for the mutual benefit of constituent members. So, if the UK were forced to leave the single market (very much against its wishes), what could we end up with?

. The Norway Model

MEMBERSHIP of the European Economic Area (EEA) would put Britain alongside Norway, Iceland and Liechtenstein, and is what Remainers mean when they talk about staying in the ‘single market’. It would keep existing trading rules but take Britain out of the Common Agricultural Policy. However, we would also have to swallow EU laws without being able to influence them, accept rulings by European judges and carry on paying into the budget (Norway’s fee is estimated at around 90 per cent of the UK’s per person). Uncontrolled immigration would continue. Unacceptable to Tory Eurosceptics.

. The Swiss Model

A SORT of EEA minus. The Swiss are members of the European Free Trade Association but not the EEA. They have a series of bilateral trade deals with the EU, which cover trade in goods but very little in services such as banking. The Swiss can negotiate trade deals with third countries, but also make a huge financial contribution to the EU. They are inside the passport-free Schengen zone and have to accept free movement. This option is also toxic for Eurosceptics.

. The Ukraine Model

A JANUARY 2016 agreement between the EU and the Ukraine could form the basis for the UK deal. It includes trade market access and co-operation on defence and security but doesn’t require free movement or the application of EU law. However, the UK would also require a deal on financial services.

. PM’s ‘free trade deal’

IN JANUARY, the Prime Minister said she wanted a ‘deep and special partnership’ covering trade and security. At the same time she says – echoing the Leave campaign – that Britain should take back control of its laws, borders and money. That means no acceptance of EU laws, no more free movement and an end to ‘vast contributions’ to the EU budget. Open issues include immigration rules, how much the UK pays to belong to EU agencies such as Europol, the ‘divorce bill’ and what the new trade rules are. The time it takes to implement such a deal could give Mrs May room for manoeuvre.

. No deal

BRITAIN would revert to World Trade Organisation rules – meaning tariffs on some goods and services. Likely to mean no ‘passporting’ rights for the City of London to trade on the continent. It would create a legal and administrative vacuum on the rights of EU nationals in the UK and British ex-pats, the Irish border, security co-operation, and deals on aviation, agriculture and fishing. Chaotic in the short term.

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Climate Change, Donald Trump, Economic, Environment, Global warming, Government, Politics, United Nations, United States

Anger as Donald Trump pulls US out of climate deal

PARIS CLIMATE AGREEMENT

US President Donald Trump announces his decision that the United States will withdraw from the Paris Climate Agreement.

The world’s consensus on fighting global warming was shattered this week as Donald Trump said he was pulling the US out of the Paris Climate Agreement.

In an address from the Rose Garden at the White House, the President said he would seek to renegotiate terms that are ‘fair to the United States.’

The move has caused an international outcry, with a string of figures from Barack Obama to EU leaders speaking out against the controversial decision.

Mr Trump said the Paris accord was ‘a self-inflicted major economic wound’ and argued his decision was based on a desire to put America first.

The 2015 deal has killed American jobs, would cost billions of dollars, and put the US at a huge disadvantage to the rest of the world, Mr Trump said.

He said: ‘In order to fulfil my solemn duty to the United States and its citizens, the US will withdraw from the Paris climate accord, but begin negotiations to re-enter either the Paris accord or a really entirely new transaction on terms that are fair to the United States.’

The Paris accord ‘is very unfair at the highest level to the United States,’ the President added.

Signed by 195 countries, the Paris Agreement commits nations to reduce the amount of carbon dioxide to stop the world overheating. By limiting global temperatures to no more than 2C above pre-industrial times, it is hoped it will stop heatwaves, droughts, rising sea levels, crop failures and storms.

But the President questioned the impact of the deal. He said he ‘represents the citizens of Pittsburgh not Paris’, said it was ‘time to make America great again,’ and that he would make full use of America’s ‘abundant energy reserves’.

He said he ‘cares deeply about the environment’ and the US would remain ‘the cleanest country on earth’.

But the Paris Agreement ‘hamstrings’ the US and has led to other countries ‘laughing at the US’.

Mr Trump said: ‘The Paris accord would undermine our economy, hamstring our workers, weaken our sovereignty, impose unacceptable legal risk, and put us at a permanent disadvantage to the other countries of the world.’

He said that there are millions of citizens out of work in the US, ‘yet under the Paris accord billions of dollars that ought to be invested right here in America will be sent to the very countries that have taken our factories and jobs away from us’. Under the terms of the accord, a deal could take at least three years – lasting until November 2020 – the same month Mr Trump is up for re-election.

Only Nicaragua and Syria have failed to sign up to the agreement and all the major industrialised nations, except for Russia, have ratified it. China and the EU have also affirmed their commitment to deeper action.

Former president Mr Obama, who signed the US up to the deal, said in a statement: ‘Even in the absence of American leadership, even as this administration joins a small handful of nations that reject the future, I’m confident that our states, cities and businesses will step up and do even more to lead the way, and help to protect for future generations the one planet we’ve got.’

The EU’s commissioner for climate change, Miguel Arias Canete, said: ‘Today is a sad day for the global community, as a key partner turns its back on the fight against climate change. The EU deeply regrets the unilateral decision by the Trump administration.’

UN spokesman Stephane Dujarric said the decision was a ‘disappointment for global efforts to reduce greenhouse gas emissions and promote global security’.

French President Emmanuel Macron made a five-minute phone call to Mr Trump following his announcement. Mr Macron is believed to have said nothing was renegotiable with regard to the Paris accord. The United States and France will continue to work together, but not on the subject of the climate.

Italy, France and Germany dismissed the President’s suggestion that the global pact could be revised. In a joint statement, they said: ‘We firmly believe that the Paris Agreement cannot be renegotiated, since it is a vital instrument for our planet.’

Greenpeace UK has reacted with anger. The environmental organisation said: ‘The government that launched the Apollo space programme and help found the UN has turned its back on science and international co-operation.’

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