Brexit: Stalemate in Brussels, Blame Game in Tokyo

The blame game has begun after the third round of “stalemate” Brexit talks between Britain and the EU, which removed any doubt that the two sides are heading for an ugly outcome.

First man into the mire was International Trade Secretary Liam Fox, who claimed the UK must not allow itself to be “blackmailed” by the Europeans over its eventual divorce bill in order to start trade talks. Best to start the blame game.

“It’s not just in Europe but here in places such as Japan investors are getting impatient and wanting to see what that final shape of that arrangement is going to be,” he said. “They want to know there will be an open and liberal trading environment in Europe.”

“There is a worry that if there is not the sort of agreement that Britain wants you could end up with the sort of impediments to trading across Europe that don’t exist today. We think we should begin discussions on the final settlement because that’s good for business, and it’s good for the prosperity both of the British people and of the rest of the people of the European Union.”

Fox echoed the demand of Brexit Secretary David Davis, who is trying desperately to get around the EU’s long-standing insistence that the Brexit talks must first make “sufficient progress” on three “separation” issues – the Irish border, the rights of expat citizens and Britain’s divorce bill – before moving on to discuss future trade relations.

The unsuccessful third round of talks made it clear that there has been little progress on those initial issues, and with just two more rounds scheduled before the UK wants the talks to move onto trade the British team is trying hard to swerve around those threshold issues.

Changing the Topic

Fox upped the blame game telling Sky News that he was concerned the Brexit talks were “stuck” on the initial issues. “I think there is frustration that we have not been able to get on that longer-term issue, that we’re stuck on this separation issue, and we’re not able to get on to the issues that will matter in the longer term for the future prosperity of the UK and the people of Europe,” he said.

“And I had representations from businesses from across Europe – from Germany, from Spain – to say: ‘Can we put more pressure on the commission to try and get us a better idea of what that final picture will look like because we need to maintain an open and liberal trading environment in Europe?’”

Fox was in Tokyo with Prime Minister Theresa May on a three-day trip trying to reassure Japanese businesses that post-Brexit Britain can remain a gateway to the EU. Uppermost in the minds of Japanese businesses and politicians is the need to see progress in the Brexit talks.

After a series of talks with her Japanese counterpart, Shinzo Abe, May won a formal agreement with Japan that the two countries would seek to strike a rapid replacement trade deal once Brexit is completed. The important word is ONCE.

EU negotiator Michel Barnier warned that at the current rate of progress, he was quite far from being able to recommend to the other 27 European countries opening parallel talks on a future trade relationship.

Barnier said the British Government had backed away from its earlier acknowledgement that it would have to pay a “divorce settlement” to leave the union.

“It’s clear that the UK doesn’t feel legally obliged to honour its obligations.  In July the UK recognised that it has obligations beyond the Brexit date but this week the UK explained that these obligations will be limited to the last payment to the EU project before departure.”

The EU’s chief negotiator said the UK’s positions showed “a sort of nostalgia in the form of specific requests which would amount to continuing to enjoy the benefits of the single market and EU membership without actually being part of it.”

“The UK wants to take back control, wants to adopt its own standards and regulations, but it also wants to have these standards recognised automatically in the EU. This is simply impossible. You cannot be outside the single market and shape its legal order.”

“The single market, the EU capacity to regulate, to supervise, to enforce our laws, must not and will not be undermined by Brexit.”

by Bob Graham

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