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DAVOS

Davos 2019: UK trade chief sells great new world after Brexit

Britain's pro-Brexit trade chief Liam Fox came to Davos Wednesday to sell a vision of "GREAT" free trade even if many in the UK parliament are aghast at where the country is going.

Published: 23 January 2019 14:46 CET
Davos 2019: UK trade chief sells great new world after Brexit
UK Secretary of State for International Trade Liam Fox in Davos on Wednesday. Photo: AFP

Interviewed by the AFP news agency at the World Economic Forum, the international trade secretary said Britain remains a world-leading destination for foreign investment despite Brexit clouds and the departure of a number of companies.

Read also: Everything you need to know about Davos 2019

He welcomed a proposal by Poland that could potentially unblock a problem surrounding the Irish border that is holding up a deal on Britain's exit from the European Union.

Many of Fox's parliamentary colleagues, including in his own Conservative Party, have stressed they will do all they can to avoid a “hard” Brexit in March.

But given the risk of Britain crashing out of the EU without a deal, Fox said he expected soon to sign several pacts with trading partners outside Europe to try to ensure a seamless transition.

The UK government is engaging in a bit of poster diplomacy in Davos. Photo: AFP

He shrugged off news that Sony has joined the drift of companies, especially from Japan, that are shifting the registration of their European headquarters, if not operations, out of Britain.

Instead he pointed to figures from the consultancy Deloitte showing Britain has attracted more foreign investment than Germany and France combined since it voted to quit the EU in 2016.

“So clearly the UK is open for business and is an attractive destination for foreign direct investment — and that during the time where there's been uncertainty over Brexit,” he said. 

Read also: Switzerland ramps up preparations for no-deal Brexit

Polish Foreign Minister Jacek Czaputowicz broke ranks with the rest of the EU this week by suggesting a time-limit of five years might be possible on the so-called Irish backstop as a way to “unblock negotiations” between London and Brussels.

Fox commented: “I welcome constructive thinking on this. The prime minister (Theresa May) has made it very clear that we will welcome any option that might enable us to deal with the backstop issue. 

“We want to reach an agreement so that we can get the withdrawal agreement through parliament to give us a timely exit of the European Union, so that we can start to talk about our future relationship, rather than simply our exit.”

Poster diplomacy

In case of no deal, Fox has won agreements with Australia, New Zealand, Chile and Switzerland to ensure mutual recognition of standards in goods trade, providing a bridge to new trading regimes for Britain outside the EU.

He has admitted that he will fall short of his previous boasts that some 40 such pacts would be ready the day after Brexit.

Read also: $10,000 hotel rooms: the staggering numbers that tell the story of Davos

“There are a number that we expect to be signing over the next month or so,” he told AFP, declining to say how many.

During his two days in Davos, Fox is meeting with trade ministers from South Korea, Hong Kong, Canada, Colombia and Israel. 

He is also overseeing a striking visual campaign in Davos to underline Britain's historic record on trade, playing on a long-running tourism campaign that emphasises the “Great” in Great Britain.

A giant poster erected on the front of the swanky Belvedere Hotel by the British government declares in all capitals: “FREE TRADE IS GREAT.”

Fox conceded that some trading partners do not see the point of negotiating stop-gap arrangements, as they are unconvinced that Britain will fail to reach a deal with the EU.

“My view to them is, don't take the chance, because it (no deal) could happen. It's maybe unlikely, but businesses will never criticise you for being over-prepared.

“So our message to our trading partners is put the work in and if it turns out you didn't need to have it, that's fine, but you don't want to be caught napping.”

If it does fail to clinch agreement with the EU, Britain would revert to basic rules set by the World Trade Organisation to manage its export and import of goods.

While that is the preferred fallback option of Brexiteers such as Fox, some WTO members in Geneva have reportedly balked at simply translating Britain's EU commitments into a new document, arguing it would give London advantageous terms.

Fox said such objections were a “red herring” as the EU itself had never traded under certified WTO commitments, known as schedules.

“We are very clear, having set our schedules out, that the UK intends to be a very open economy and we intend to use our independent seat at the World Trade Organisation to push for greater liberalisation,” he said.

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BREXIT

What Labour’s UK election win could mean for Brits in Europe

The UK's new Prime Minister Keir Starmer has swept into Downing Street in a landslide victory. But how will a Labour government affect Brits in Europe? And what, if anything, will the former 'Remainer' do about Brexit?

Published: 5 July 2024 15:31 CEST
Updated: 8 July 2024 13:40 CEST
What Labour's UK election win could mean for Brits in Europe

The Labour party won a landslide victory in the UK general election on Thursday, bringing an end to 14 years of Conservative party rule.

Labour majority

The new Labour government enters office at a time of high political and economic uncertainty, stagnant growth, public services pushed to breaking point, and Britain’s international reputation tarnished after the Conservative government staggered from calamity to calamity in recent years.

Leading up to the election, the question was not if Labour would win but when, and how big the majority will be. In the end Labour won one of the biggest landslides in British political history, taking 412 seats. 

What the new Labour government does (or more likely, doesn’t) do with its massive majority could have big implications on life for approximately 1.3 million UK nationals living throughout the EU.

Writing exclusively for The Local after his party’s election win, the UK’s new Foreign Secretary David Lammy said Britain would reset its ties with the EU.

“As the new British Foreign Secretary, with our Prime Minister Keir Starmer, this government will reset relations with Europe as a reliable partner, a dependable ally and a good neighbour.”

Lammy added: “We must do more to champion the ties between our people and our culture. Holidays, family ties, school and student exchanges, the arts, and sport (I was of course cheering on England in the Euros…). Thanks to this, our citizens benefit from the rich diversity of our continent.

“If we are to fulfil our ambitions for a reset, we must also improve Britain’s relationship with the European Union… I look forward to seeing Britain reconnect with our European neighbours in the years ahead.”

For many Brits in Europe (as well as those in the UK), the elephant in the room is, of course, Brexit.

Starmer and Labour’s Brexit policy

But what, if anything, does a Labour government actually mean for Brexit and Brits in Europe?

For many, Starmer first came to national prominence in his role as shadow Brexit secretary under former Labour leader Jeremy Corbyn. He was then an ardent Remainer, and largely responsible for Labour’s eventual position on a second referendum, demanding that the British people deserve a “confirmatory vote” on Europe.

How things have changed. In the build-up to the election Starmer categorically ruled out the idea of rejoining the single market and the customs union, let alone a second referendum on rejoining the EU. He has, however, stated that he will take steps to ease trade barriers and sign a bolstered security agreement with Brussels.

Asked recently by the British press if he could envision Britain re-entering the EU in his lifetime, Starmer was unequivocal. “No. I don’t think that that is going to happen,” he said. “I’ve been really clear about not rejoining the EU, the single market or the customs union – or a return to freedom of movement.”

These comments sparked a certain amount of anger and disappointment among many Brits in Europe. Although they were made before the actual election with Starmer still in campaign mode.

In essence, despite his Remain-backing past, Starmer’s position seems to be that Labour can improve the Brexit deal signed by the Johnson government in January 2020, rather than tear it up or try and force the UK back into the EU on new terms.

For those hoping to rejoin the EU one day, this will be disappointing. Brexit became something of an internal psychodrama for the Conservative party, yet Starmer’s Labour appear to have accepted it as the political framework and don’t dare reopen the debate.

So for the hundreds of thousands of UK nationals living in Europe there will be no return of their freedom of movement and EU citizenship anytime soon.

So will Labour change anything for Brits in Europe?

Labour has been tight-lipped on what its Brexit policy will actually mean in practical terms, but of the few concrete proposals it has outlined so far there are plans to revamp a veterinary deal on animal products to ease on paperwork and border checks, as well as making it easier for qualifications to be recognised abroad.

Labour has also promised to enshrine rights to consular assistance for UK citizens abroad in cases of human rights violations, and to make reciprocal arrangements for touring artists and musicians moving between the UK and EU.

In terms of broad strokes commitments, however, it’s hardly ambitious.

Some economic experts have suggested that rejoining the single market or customs union would significantly boost the British economy, so some hold out hope that the political and economic reality may force the new Labour government to reconsider its position on Europe somewhere down the line.

What about the roll out of the the EU’s new EES border system?

Britons travelling to Europe will face likely travel disruption when the EU finally rolls out its new biometric border checks known as Entry/Exit System or just EES.

There had been much talk of the UK government trying to get the rollout delayed in a bid to avoid or at least postpone the likely chaos. Could Keir Starmer’s government put pressure on the EU to delay EES?

Well the main point to note is that it’s up to the EU when it rolls out EES, not the UK government. It is due to be launched in October or November although an exact date has not been announced. However if there is any delay it will likely be because of concerns on the EU side rather than because of pressure from the UK.

READ ALSO: When will Europe’s new EES passport system be launched?

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