LyrArc Article Gist
As the British parliament prepares to vote on Brexit deal put forward by prime minister Theresa May, Joanna Sugden summarizes what is expected as the next step if parliament rejects it.  Why are a faction Conservative members opposed to it? There is the Irish backstop which they oppose. Keeping open the border between the two Irelands- Northern Ireland as part of Britain and Ireland as a EU country is important to preserve peace achieved through the Good Friday Agreement between the Catholic and Protestant communities.May wants to keep the border open. Far right Conservatives see this as keeping Britain connected to the EU in some way which they oppose. They stubbornly hold onto this view. Add to this the opposition from the Remain campaign which sees leaving the EU as bad for Britain's economic future. Some Leave supporters now see the dangers of Brexit, especially leaving with no deal made with the EU. Most of the Labour Party members fall into this group. What happens if parliament rejects May's deal by a small margin? The deal would be renegotiated with the EU to tweak it for more support. What happens if parliament rejects it with a huge margin? This would result in several options. May could call a general election. Britain could have a second referendum on Brexit. Or in a chaotic situation Britain could leave the European Union without a deal altogether, something everyone wants to avoid because of the disruptions it would cause. May is using this risk as  a way to persuade reluctant MP's but it may not work.     ...

LyrArc Article Gist
This essay in the Economist warns that most of the public does not understand the dangers of the idea of no Brexit as a preferred option to a Brexit deal that gives too much to the EU. It says this is dangerous in terms of the harsh effects at the border with Ireland and on the economies of Ireland and Britain. It points out that the private view of the EU is very negative towards Brexit compared to the diplomatic comments, so that little should be taken for granted. The European Union and Britain would in the event of no deal on Brexit not follow agreed  terms such on as the 40 billion pounds exit bill, guarantee of EU citizens rights, averting of a hard border in Ireland. The unfriendly nature of such a no deal would lead to aggravating its effects, argues the Economist.  The Economist estimate is that about 4% of GDP would be lost over 5 years for Britain and Ireland. Supply chains would be disrupted. Depending on WTO rules alone is not sufficient as the EU has bilateral deals with many countries. The car industry is particularly vulnerable as it employs 800,000 people and exports 80% of output- it would lose EU certification and face 10% tariffs. EU has made clear that trade for chemicals, pharmaceuticals or cars depends on meeting its standards. These are only a few of the problems in trade as the list goes on and on. ...

LyrArc Article Gist
An IFO Institute Survey of German businessmen shows 43% think there would be a no-deal Brexit. Germany's Economy Minister Peter Altmaier, thinks a disorderly Brexit "would hit the German economy hard." Germany had a $48 billion surplus with the UK in 2017. Britain is Germany's fifth largest trading partner.

Interestingly German businessmen including Bernhard Matthes, the president of the German car manufacturers association, all of them do not want the German government to offer more concessions to Britain. Even though they say the no-deal Brexit would be profoundly damaging. When they sit down with Merkel they do not say they want a different approach. The priority they say is that the European Union member states stick together and not make concessions that would invite others to go that way.

LyrArc Article Gist
President Trump says the terms set in the deal Boris Johnson negotiated with the European Union preclude any deal with the U.S. He says after looking at the agreement that "we can't make a trade deal with the UK."  Trump made similar comments for prime minister Theresa May when he said that May's strategy for Brexit would "kill" any chance of a trade deal with the U.S. Mr. Boris Johnson, UK prime minister, has promised to negotiate a free trade agreement with the U.S. after delivering Brexit. A separate report in DW.com showed that countries with large potential in trade for Britain such as India are also less likely to sign a deal with Britain because the EU is a much larger trading partner with India. This could have an effect on Mr. Johnson's election campaign.

LyrArc Article Gist
British Labour party leader says any Brexit deal should be put to a referendum. Earlier many Labour party members supported a second referendum with Mr. Corbyn yet to make a clear stand. During the local elections and the elections to European parliament the Labour party had losses to parties that favored canceling Brexit, including the Liberal Democrats. Corbyn said: "Let the people decide the country's future, either in a general election or through a public vote on any Brexit deal agreed by Parliament." He made these remarks ahead of a meeting with the prime minister of Ireland.  A poll conducted by Panelbase shows  a second referendum on Brexit would get 52% for Remain in the EU and 45% for Leave the EU compared to 52% for Leave and 48% voting Remain in the 2016 referendum. Parliament has to vote for a second referendum for it to take place. The Liberal Democrats made large gains in the recent European elections on the mandate to hold a second referendum, including in Mr. Corbyn's North London area.  If Mr. Boris Johnson succeeds Theresa May as prime minister the Conservative Party faces even more hurdles. European Union is even less likely to negotiate a deal with Mr. Johnson. A withdrawal from the EU without a negotiated agreement favored by Mr. Johnson is unlikely to get support in parliament as it has repeatedly blocked such a move. The alternative is fresh elections not favored by Conservative Party as it is losing credibility, or a second referendum. Alternative also is fresh elections followed by a second referendum by the winning party.   ...

LyrArc Article Gist
Efforts of prime minister Theresa May to somehow force members of parliament to back her Brexit deal through repeated votes in parliament have collapsed. Speaker Bercrow says the same deal cannot be voted on twice. Last week the British parliament rejected May's Brexit deal by the largest margin of any bill in parliamentary history. The vote rejecting her deal was with a margin of 149 votes. Speaker Bercrow cited a parliamentary convention dating back to 1604.  

Conservative Party leaders opposing May's deal Jacob Rees Mogg welcomed the Speaker's ruling. The Conservative Party is so divided on this issue of exiting the European Union that it has severely undermined Mrs. May's authority in parliament. Mr. Mogg favors leaving the European Union with no deal regardless of the consequences. On the other side is the Labour Party and some Conservative party members who are adamantly opposed to this.

LyrArc Article Gist
Following Brexit on January 31, 2020, Britain's government led by Boris Johnson prepares to negotiate new trade deals with the U.S. and other countries. The freedom to negotiate these trade deals was a key part of the plan of Brexit supporters and Mr. Johnson. The Times, Britain's leading newspaper, looks at the prospects of trade deals with each country- the U.S., Australia, New Zealand, Japan. Facing re-election Mr. Trump is seen as favorably inclined to work out a trade deal that he can show during the campaign. Trade discussions have taken place between the UK and Australia, Japan. Mr. Morrison in Australia and Mr. Shinzo Abe want to see strong trading ties and investment with Britain. Japan or Australia could be the first countries that work out a trade deal with Britain as discussions are at an advanced stage.  Britain has a small deficit with Japan in trade. It has a small dollar surplus in trade with the Australia and New Zealand. With the U.S Britain has a large surplus, it exports 121 billion pounds and imports 76 billion pounds. The prospects of trade deals are enhanced by the similarity in outlook of the governments of the U.S., Australia, and Japan, which share views on jobs expansion, economic growth and are centre right in economic philosophy. They also share a strong connection with working class voters under Johnson,Trump and Morrison. Mr. Trump is seen as a strong deal maker so that any deal would involve some concessions from Britain that increase U.S exports, including farm exports. Difficult issues with the U.S. are -pharmaceutical drug imports that could increase Britain's NHS cost for drugs, the digital services tax from Britain on U.S.  companies such as Google and the Trump retaliatory threat to impose tariffs beyond the current 2.5% on car imports of $11 billion from Britain. On agricultural imports Britain's natural foods preference conflicts with imports of genetically modified (GMO) foods from the U.S. Experts say this could lead to a partial or Phase 1 deal that does not need approval from the U.S. Congress, similar to the Phase 1 trade deal with China which sidestepped the thorny issues on trade. This is something both sides can show their support base as a win. ...

LyrArc Article Gist
Boris Johnson says no deal Brexit remains a real possibility after dinner meeting with Leyen and discussions fail to lead to any agreement. Johnson says he has the backing of his senior ministers. The UK Johnson says, should not remain stuck in "the EU's regulatory orbit." There now appears to be a German led group that includes Sweden that seeks a compromise, and a French led group that accepts Britain leaving the European Union without any agreement.

LyrArc Article Gist
Michael Gove heads the XO (exit operations) group for no deal planning on Brexit. This group met twice in one week and the planning is being done by ministers for no deal.  There is growing sentiment in the government that with the EU not budging, trading on World Trade Organization terms after January 1, 2021 is the only or best option for Britain. Britain would simply walk away from the unproductive talks.

LyrArc Article Gist
President Trump on a three day visit to the UK promised a free trade deal with Britain if it made a decisive break with the European Union. Such a free trade deal could take years, offer small benefits compared to the loss of the much larger trading relationship with the European Union. It would face hurdles in passage through Congress because Democrats controlling the House of Representatives see a decisive break with the European Union including the customs union arrangement as affecting the open border in Ireland risking the hard won peace in Northern Ireland.  Prime Minister Theresa May proposed a withdrawal arrangement that would keep the customs union arrangement but has failed to secure the support of a faction within her Conservative party that favors a decisive break from the EU. Such a break that Mr. Trump and Boris Johnson the leader of this faction -and a favored candidate to succeed prime minister May after her resignation- would reduce Britain's GDP over the next 15 years at the higher end of the range of 0.1% to 9% a year. A decisive break called a no deal Brexit with no arrangements or agreement for withdrawal with the EU, would lead to a loss closer to the 9% estimate. British experts to the EU are about $275 billion or 44% of its total exports compared to about $44 billion to the U.S., according to HMS Customs source, showing how important it is for Britain to maintain a close trading relationship with the European Union. British farmers would also face competition through agricultural imports from the U.S. in a free trade deal. During his visit Mr. Trump also stated the National Health Service, everything would be on the table in a free trade deal with the U.S.  Theresa May responded by saying that the NHS would not be open for negotiation to American corporate involvement. Public sensitivity is high on any change to the National Health Service. The trip of president Trump to London in which he supported Boris Johnson as candidate to succeed Theresa May, with discussions between Trump and Johnson for 20 minutes, and a visit by Nigel Farage to the U.S. embassy, and no meeting with Labour party leader Corbyn, only shows the widening of differences on the issue of British withdrawal from the EU making any deal for withdrawal even less likely. Labour party leader Jeremy Corbyn now favors a second referendum on whether Britain should leave the EU.  ...

LyrArc Article Gist
The Economist magazine says parliament in Britain should act to pass a motion of no- confidence for the Boris Johnson government. It says Mr.Johnson's action stifling parliamentary democracy by suspending parliament in the weeks before the Brexit date of October 31st is reason for the opposition and Tory rebels to set aside their differences. Without this Mr. Johnson could take Britain out of the European Union without any deal. This would damage the economy, leaving Britons poorer, and create unrest in Northern Ireland.

LyrArc Article Gist
Boris Johnson has set up a unit in !0 Downing Street to coordinate a response  in the event of a "nightmare scenario" of spike in Coronavirus and a no deal Brexit added together with extreme flooding during the winter. Michael Gove, Cabinet Office minister is overseeing this effort.

LyrArc Article Gist
One of the goals of the Northern Ireland deal is closer relations between the EU and Britain putting to rest the tensions from Brexit. The EU sees Sunak as a good faith negotiator and made concessions on the application of EU laws for Northern Ireland. In Britain 60% of people now say in opinion surveys that they see the 2016 vote to leave the European Union as a mistake. A genuine relationship with the EU will happen only after a change in power from the Conservatives to the Labour party in the January 2025 election, says Mark Landler in the NYT.

LyrArc Article Gist
British prime minister May puts her leadership on the line as she puts forward a Brexit deal to a divided cabinet. The deal keeps Britain in the customs union of the European Union and continues Britain's connections with the EU in other areas. It is opposed by some members of her cabinet. Transport minister Jo Johnson resigned calling for a second referendum. Pro Brexiters oppose the deal as it continues Britain's membership in the customs union.

LyrArc Article Gist
The first reading of the bill to stop no-deal Brexit clears the House of Commons in Britain with a vote of 329 to 300. This rebuffs prime minister Boris Johnson's plan to push Brexit through by stealth and at any cost by October 31. The bill will delay this to Jan. 2020, and set the stage for a no confidence motion in the minority government of Mr. Boris Johnson.

It now prepares Britain for general elections as early as October with Johnson hoping to unite theBrexit faction, but facing a possible backlash from Conservative moderates, and facing also the lack of support from UKIP Party's Nigel Farage. It is a very different Brexit campaign in very different circumstances than the one that was able to win in the last referendum. It also poses a challenge for Labour party to get its message across about living standards and economic opportunity for all, better than it has before.

LyrArc Article Gist
The Trans Pacific Trade Agreement TPP adds so liitle, only 0.04% to Britain's GDP in 15 year from 2023, says the Office of Budget responsibility in Britain. It is this trade agreement ignoring American workers that Mr. Obama and Hillary Clinton pushed for leading to the Democrats defeat in the 2016 election. Most of the trade deals including ones with Canada and Australia add up to no more than 1% to Britain's GDP when the loss of the EU through Brexit means a loss of 4% of GDP for Britain. This is how much the trade deals were over hyped by the Brexiters Johnson and Sunak.

LyrArc Article Gist
Britain's parliament voted 358 in favor and 234 against to back prime minister Boris Johnson in his effort to get Britain to leave the European Union by January 31, 2020. Negotiation will not be extended beyond 2020. With a comfortable 80 seat majority and many lawmakers newly elected in parliament in favor of Brexit the process appeared easy compared to the problems faced by Theresa May who lacked a majority. In October Mr. Johnson negotiated a deal with the EU which stated how Britain plans to leave the EU. This covered citizens' rights, a financial settlement to leave, and an arrangement to avoid a physical border in Ireland. With another vote in parliament and passage in the House of Lords the process now appears certain to be completed before January end 2020. To get Brexit done Mr. Johnson sought blue collar support in the north of England and the Midlands, a region neglected by Labour and the old Conservatives. Too much of the focus had remained on London. This strategy worked after neglect of working class districts by Labour under Blair and Brown. Mr. Johnson's approach was to commit the Conservatives to new infrastructure spending, spending on schools and the NHS, just as Mr. Trump had done in the U.S. to permanently change the Republican party. This combined with an appeal to patriotism and the idea of Britain drew strong support across England in the election. ...

LyrArc Article Gist
Japan's economy minister, Mr. Seko, says that with no-deal Brexit Britain will lose access to Japan's new economic partnership agreement with the European Union which last month created the world's largest free trade zone. Seko said 1000 Japanese companies have invested in the UK creating 150,000 jobs, because it served as "a gateway to the European market."

Nissan is scaling back its Sunderland factory. Sony and Panasonic are relocating their EU headquarters to Amsterdam. Honda will close its Swindon plant in 2021. Seko said "uncertainty for the consequences of Brexit is spreading in Japanese industry."

LyrArc Article Gist
France and Britain are at loggerheads over fishing rights in UK waters. UK will now have 4 Navy patrol ships protect its fishing waters in the event of a no deal Brexit. French and other EU fishermen get 60% of the fish taken from UK waters. UK exclusive economic zone extends 200 miles from the shore. Conservative ministers have doubled the total fleet of patrol ships from four to eight. During patrol in extreme cases a EU boat can be impounded and taken to the nearest EU port, otherwise it could be boarded and inspected.

LyrArc Article Gist
In an earlier interview with the Sun newspaper, Mr. Trump said he disagreed with Theresa May's approach to Brexit and called it "turmoil" that Boris Johnson had resigned as Foreign Secretary. He went on to say that Boris Johnson would make a great prime minister, that May's handling could "kill" a trade deal with the U.S. At the meetings and press conference Trump reversed this and called it "fake news" as it did not tell the whole story and his positive comments. Trump said at the joint press conference with May that he was open to a trade deal and that how May handled Brexit was upto the prime minister- "Whatever you do is OK with me."

Protests took place in London for Trump's visit including a Blimp over London during the rally.

LyrArc Article Gist
Keir Starmeir, a human rights lawyer for 20 years, heads the Labour Party negotiating team in negotiations with Theresa May for a cross-party Brexit deal. He says about 150 Labour MP's would reject a Brexit deal that is lacking a confirmatory second referendum on Brexit. He also said Labour risks losing Remain voters tempted to vote for the Liberal Democrats or Change UK. Starmier said it is time to call time on the cross party talks in a few days.

Recalling his days as a human rights lawyers Starmier says he never thought he would be defending those values of society which were considered part of British society. Starmier says this battle for values is much bigger than one political party.

LyrArc Article Gist
The main sticking point  in Brexit talks in December 2020 is the demand led by France to impose "lightning" unilateral tariffs on UK exports if the U.S. is seen as violating existing European Union social, environmental or state subsidy rules. UK is seeking a dispute resolution procedure and redress measures based on the actual damage or extent of the violation.

The other issue is fishing with the EU asking for a 10 year period of transition for fishing in British waters followed by only 18% of the gains to EU being paid back to Britain.

LyrArc Article Gist
As part of the European Union Brtiain could not shape its own trade deals since the 1970's. The current Brexit standoff leaves little option of changing this. The new Department of International Trade is unlikely to accomplish much even with 400 staffers and a new trade negotiator hired from New Zealand. Britain is likely to remain in the EU trading bloc customs area for many years under the standoff with EU. Countries will wait till Britain finalizes its trade deal with the EU under Brexit. It took Canada 7 years to achieve a trade deal with EU. 

Brexit uncertaintly, split in Conservative Party and Labour Party's agreeing to a second referendum on Brexit mean little progress on trade deals for Britain.