Brexit: Direction Of Travel
This has been, on the face of it, an eventful week on the Brexit journey. However in the short term, at least, the negotiating aims of the UK and the process by which it will commence those negotiations remain intact. The 'Brexit Bill' was debated in Parliament and passed the MP vote by a majority of 384.
What followed was the Brexit White Paper, setting out further detail on the 12 negotiating principles set out by the Prime Minister on 17th January.
There is little that is new, but the paper does provide factual data to support the Government's position and reaffirms the government's narrative in some key areas:
The paper makes clear that the Government will consult on the Great Repeal Bill and the EU legislation to be brought onto the UK statue books through the Bill's application. The Bill will have three primary elements: it will repeal the European Communities Act 1972; it will preserve EU law as it stands before we leave the EU; and it will enable changes to be made by secondary legislation to the laws that would otherwise not function sensibly once the UK has left the EU. This effectively provides that past European Court decisions will continue to apply, as will EU interpretations, giving much greater clarity regarding the status of the law. The fact that the UK and EU's regulatory regimes are currently converged would make it significantly easier to negotiate a best in class Free Trade Agreement (FTA). A stable regulatory environment would be welcomed by business leaders as they consider adapting to changes in trading regimes. The paper confirms "any significant policy changes" will be underpinned by primary legislation, allowing Parliament to scrutinise the details and presumably providing the opportunity for business to continue a dialogue with Government on material legislative issues for them. The paper acknowledges that the UK needs highly skilled migrants and students. Further, it confirms that the UK stands ready to give certainty regarding the outcomes for EU nationals currently residing in the UK, provided that a reciprocal deal can be negotiated. However, the government has made no commitment regarding entry into the UK for unskilled and semi-skilled migrants. There are fairly detailed analyses of trade with the EU for certain sectors. Aside from these trade in services gets little attention. The paper observes that the UK has a £89 billion deficit in trade in...
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