QOTD -- Brexit
While Americans were celebrating Independence Day, UK Prime Minister Johnson was floating trial balloons with Poland about alternative approaches for leaving the EU at year-end with at least some kind of agreement in place. The moves occurred just as a second round of technical negotiations were set to begin in London with the EU.
So when our PolicyScope Platform this morning registered that Prime Johnson had spoken with Chancellor Merkel yesterday it was hard not to pay attention immediately:
The real Brexit negotiations are no longer at the technical level. Heads of State are now personally involved in sorting out the details.
For readers not familiar with the technical trade policy details associated with "Australia terms": Australia has in place a "Partnership Agreement with the European Union dating to 2008 which includes a Mutual Recognition Agreement that applies only to industrial goods. The agreement decreases the cost of testing and certification for industrial goods ("conformity assessment procedures") by effectively waiving many if not all of the testing requirements.
The back story is that Australia and the EU have had a long-running set of disagreements regarding the EU's subsidies for farmers under the Common Agricultural Policy. Those disagreements are also a source of disagreement between the UK and the EU.
PM Johnson is effectively saying that the UK is ready, willing, and able to give up on a broad trade agreement while leaving open a door for cross-border trade on high-value manufacturing and industrial equipment. With the Environment Secretary's appearance in the Parliament today regarding parallel level playing field and enforcement/judicial issues, the stage is set for hard core bargaining at much higher levels of authority (heads of state, parliaments) than the technical negotiators currently meeting at Downing Street.
These developments were found this morning using the proprietary and patented PolicyScope Platform. To learn more about how your company can also benefit from these kinds of automated insights and next-generation policy monitoring tools regarding trade, Brexit, COVID-19, FinTech, CBDC, cryptocurrency, and banking regulation issues, please visit www.policyscope.io/about