Sunday 4 February 2018

MEETINGS THIS WEEK

The face to face phase II negotiations start again on Monday (HERE). Barnier comes to London and there will be further discussions between officials from Tuesday to Friday. The talks will include issues on the Irish border (at least I assume this is what Ireland/Northern Ireland means). The published schedule doesn't show a press conference but I assume we will get one. Usually, Barnier tends to be more forthcoming and we may learn something this week.

At the same time, Brexit cabinet committee is to meet on Wednesday and Thursday amid continuing confusion about the government's position on the customs union. After the usual round of Sunday TV interviews the government was forced to confirm the policy is to leave the customs union (HERE). But this is no more than ruling something out. It doesn't tell us what will be put in its place to ensure frictionless trade. I am not even sure this is the most important issue in any event. Norway is outside the customs union but inside the EEA and effectively trades reasonably smoothly with the EU.

This week is surely crunch time. We can't go much further or begin the second phase of talks without a clear cabinet position. Having your cake and eating it will have to end and we must decide how we leave the single market and the customs union and at the same time enjoy frictionless trade or as David Davis put it, the exact same benefits that we enjoy now. The fantasy that we would be able to continue as we are yet somehow gain the freedom to negotiate trade deals elsewhere.

This will not be easy as this Guardian article HERE suggests.

And we shouldn't forget the government's policy of leaving the customs union is against the wishes of the CBI, an organisation that represents 190,000 businesses. This is the Conservative government that normally champions business. Before the referendum we were told the German equivalent to the CBI would press the German government to give us what we wanted, that they had some sway over policy. But ministers like Davis who told us this are now totally ignoring their own employers organisation.

So, we may have a bit of the dense fog clearing by the end of the week.