Theresa May’s New Year of Hope

As far as years go, UK Prime Minister Theresa May must be glad to see the end of 2017 as are many others in Britain and around the world. In matters Brexit, it was a year of low-level chaos and unfulfilled expectations — lots of ‘churn’ but not much actual progress.

Yet the Prime Minister did make some exceptional speeches and unexpectedly reached-out to EU citizens to assure them that while Britain was leaving the European Union, it wasn’t leaving Europe. Well done on both counts, Theresa May.

She also told EU citizens living in the UK that their situation wouldn’t change, aside from having to register their residency with the Home Office and pay a nominal fee to retain their ‘settled status’. And while that didn’t seem to impress small numbers of EU negotiators, it brought great comfort to millions of expats living in Britain.

Of course, it’s all contingent upon reaching a final ‘Withdrawal Agreement’ between the United Kingdom and the European Union, but it’s not too much of a stretch to suggest that the UK would act unilaterally to guarantee the rights of EU citizens working or studying in Britain in the case of no agreement.

Theresa May also offered £40 billion of UK taxpayer money to the European Union; Everyone is unclear what this is for, as nobody from the government has bothered to explain it to citizens.

Many people think that the UK’s share in the EU Parliament buildings and in other EU properties and assets should be sold off to the other EU27 members and the £9.65 billion (estimated) value could be used to pay future UK liabilities to the EU and that there is no need to pay £40 billion. Which seems reasonable.

If there is an actual need for the UK to pay £40 billion to the EU, surely British taxpayers have the right to know what they’re paying for, and to whom.

But if Theresa May has agreed to continue paying the £8.6 billion annual net payment to the European Union until Brexit completes within 2 years (approximately) plus 2 more years to cover the transition period, then that seems pretty reasonable too. If that’s how the £40 billion is being arrived at, there’s not much to complain about there.


With all this reasonableness going ’round it’s no wonder EU negotiators agreed to move to Phase II of Brexit negotiations — trade — a hyper-important part of the post-Brexit relationship on both sides of the English Channel.

Negotiating a mutually beneficial trade agreement between the UK and the EU in 2018 is Job Number One for negotiators on both sides.

Trade between the United Kingdom and the EU27 ranks as one of the most robust trading relationships in the world

  • 44% of UK exports are sold to the EU27, making them Britain’s most important trade partner.
  • 16% of EU exports are sold to the UK, making Britain the EU27’s most important trade partner.

Which makes the whole ‘getting an agreement’ discussion largely academic — as there will be an agreement or hundreds CEO’s on both sides of the English Channel will be breathing fire down the necks of UK and EU negotiators every day until an agreement is reached. “Don’t even think about coming home without an agreement!” (Yes, just like that)


UK/EU Trade: Where do United Kingdom Exports Go?


Where do UK exports go? UK Office for National Statistics 2015.


UK/EU Trade: Where do European Union Exports Go?


The EU's largest single export market is the UK. European Commission Export Helpdesk.


So There We Have It: They Can’t Live With Each Other, But They Can’t Live Without Each Other!

Which is a very good thing.

And because companies on both sides need to keep their biggest export market open and flourishing, there absolutely will be a reasonable trade deal — one that both sides can live with. There is simply no alternative.

Which neatly explains the title of this blog post ‘Theresa May’s New Year of Hope’ because Job Number One for Brexit negotiators on both sides must be working a successful trade deal — and every CEO in Europe will be watching with keen interest, to put it very mildly.

You don’t want to be the trade negotiator coming home without a deal and having to tell the CEO of Volkswagen or BP that you were too incompetent to get a deal. Yikes!

There will be an excellent UK/EU trade deal in 2018, a trade accord that both sides will be rightly proud of — one that works for CEO’s, citizens and governments throughout Europe.


Trade As Saviour

As the focus will be on trade in 2018 (something that both sides must preserve if today’s politicians want to keep their jobs) the new year looks to be one of the better years for relations between the UK and the EU27.

Let’s hope that Phase II of the Brexit negotiations move smartly along and that (if a Phase III is required) the momentum that gets built throughout 2018 works to facilitate friendly and workable solutions to any remaining issues between the two blocs.

Politicians and negotiators on both sides of the Brexit divide have everything to gain by bringing home a fair and workable trading agreement and everything to lose if they don’t.

Therefore, let 2018 be ‘The Year of Hope’ as 512 million European citizens are counting on their politicians and negotiators to open windows of opportunity as big as the sky, and to create even more justice and fairness for all Europeans, no matter where in Europe they may live, work, or play.

No matter which side of Brexit you’re on, the kleef&co team wish you a Happy, Safe, and Prosperous New Year!

Written by John Brian Shannon

Should the UK Have an Opinion on Catalonia?

by John Brian Shannon | Reposted from Letter to Britain

As long as the UK remains a fully paid-up member of the 28-member European Union it seems fair that the government should have a position on Catalonia’s recent move toward greater autonomy. Which in recent weeks, has grown beyond simple autonomy within the Spanish federal government architecture to seeking full independence, but the attempt has since been knocked down by the Spanish authorities.

Had the UK passed the Brexit threshold by now, it would be difficult indeed for the British government to have any public opinion at all as it then becomes a very different thing. It’s fair comment to opine on the internal politics of a fellow EU member state, but it is quite another for a non-member to criticize the goings-on in a foreign country.

For that reason, it’s well within Theresa May’s purview as the Prime Minister of a paid-up member of the European Union to comment on issues Catalonia.

Nigel Farage MEP certainly didn’t hold back from informing his viewers about his opinions on the Catalonian situation and it’s difficult to find flaws in his argument. See video here.

Certainly, it was a tragedy that 900 mainly peaceful protesters were injured and/or arrested by Spanish federal police, although many of those charges against protesters may be dropped in exchange for the much more serious charges against the police being dropped.

Look for this to happen on a case-by-case basis. Many of the police are reputed to have used excessive force against the (most probably annoying, but otherwise peaceful) protesters.

Until such times as Britain is no longer an EU member state, the UK and its citizens have every right to comment on the unfortunate Catalonian situation, but after Brexit I hope the UK government feels constrained about commenting, as it will then be a comment on the internal affairs of a political bloc (the EU) a sovereign nation within the EU (Spain) and a state within that nation (Catalonia)


“What Goes Around, Comes Around”

This has been true since the universe began and were the British government to attempt to unduly affect the outcome (either way) in Catalonia, eventually it could work against the United Kingdom and conceivably against the Commonwealth as there are rumours from time to time about disaffection among jurisdictions in either entity.

Therefore, it’s best for the UK government to comment in good form only and avoid trying to make political hay against the EU bloc simply because some in the UK may have other frustrations with them.

Hey, they’re frustrated too. It isn’t a one-way street. Let’s just get the Brexit done and not unduly antagonize the EU Parliament or its individual member states in the meantime, not only because it’s the right thing to do, but because that works better for the UK in the long run.


Related Graphic:
Catalonia referendum 2017

It’s time to grow the market! (and not fight over market share)

by John Brian Shannon | Reposted from LettertoBritain

A sea-change is upon the United Kingdom whether some have come to that full realization or not

The relationship between the UK and the rest of the world is beginning to change as the UK exits the European Union. Not only that, but the relationship between the UK and the other Commonwealth countries is changing. And while all of that is occurring, it is also a time of change in the postwar international order.

These changes are coming and we have no ability to stop them. What we do have though, is the ability to choose whether these changes are ultimately negative or positive for Britain.


The days of ‘Win-Lose’ politics are over

When every second country (seemingly) has WMD weapons, suddenly Win-Lose doesn’t work anymore. Do we really want to solve every issue between nations with nuclear weapons? Because eventually, that’s what it will come to.

It’s great if you ‘Win’. But then you ‘Lose’ because the fallout from large nuclear explosions travel around the Earth a few times per season and nuclear particles continue to exist in the environment for decades (some isotopes linger for 20,000 years) and as everyone needs to breathe the air, eventually you will inhale and, well, (do I really have to tell you this?) your lungs will filter the radioactive isotopes out of the air.

The ‘Winners’ of a WMD conflict will also become ‘Losers’ of that conflict within months. It’s nonsensical to consider nuclear war in the 21st-century.

All of which means, that in the final analysis, international hot points must henceforth be solved by the cool hand of diplomacy.


The days of fighting for Market Share are over

More than any other country, fighting for market share no longer makes economic sense for the UK, because every other country/corporation is likewise fighting for market share.

Larger countries with serious export expertise and fully developed and long-term foreign client relationships have a distinct advantage over a born-again United Kingdom re-entering the exporting world. Fighting for market share against far superior marketing superpowers like Germany and China is like paddling upriver in a hurricane, and good luck with that.

Rather than fighting for Britain’s slice of the pie, the UK should be the one country in the world that works to make the pie bigger for everyone! wherever free markets exist.

In that way, whatever global growth occurs will benefit all exporters equally — including Britain’s born-again export economy, because the UK will have as good a chance as any to capture some of that growing pie — as opposed to fighting companies well entrenched in foreign markets and trying to steal tiny percentages of their total market share. See the difference?

“Don’t fight a battle if you don’t gain anything by winning.” — Erwin Rommel

Rommel was right. And to adapt his truth to Britain’s new place in the world, fighting for market share in countries that are already well-served by European and Chinese exporters will gain British exporters very little and could create trade frictions between Britain and the European Union which is still the UK’s largest trading partner in the 21st-century. We don’t want that.

Grow the entire market instead of fighting for tiny increases in market share
Grow the entire global market — instead of fighting for tiny annual increases in market share.

‘Win-Win and Growing the Market vs. ‘Win-Lose’ and fighting for Market Share

Win-Win political thinking and growing the global market is the best prescription for Britain’s economic future.

Countries with rapidly growing economies like the BRICS countries and many Commonwealth nations are the best places for Britain to concentrate its export efforts. By helping those countries to succeed more than they would have without the UK’s assistance, Britain can grow its export base by selling to people in rapidly growing developing nations enjoying their newfound discretionary income.

It’s all about rising Disposable Income in Developing Nations

The example of India is most poignant, because in that country the average discretionary income of citizens is doubling every five years; All Britain’s leaders must do now, is to work respectfully with Prime Minister Narendra Modi and his ministers to the end that British exports to India are welcome and that Indian exports to the UK are just as welcome. (It helps if both countries aren’t manufacturing and selling the same items, of course) If India sells toasters in both countries then Britain should sell kettles in both countries, if you take my meaning. The less overlap, the better.

A few years from now, when a larger percentage of India’s 1.5 billion population can afford to buy a new car, perhaps Indian companies will offer tuk-tuks, small cars and farm trucks for sale in India and the UK, while the UK sells family sedans and Landrovers in India and the UK.

Any other method of working to each country’s strengths — without stepping on each other’s toes — would also be profitable for companies of both countries. What matters is that whatever method is chosen works for companies in both countries.

With the right approach to rapidly growing countries and some standardized and respectful trade rules, the UK could help to grow the global pie, dramatically increase its own exports, keep good relations with exporting superpowers in Europe, China, and America, and be seen as a ‘White Knight’ to developing nations by playing a pivotal and ongoing role in helping them to build their economies.

That future is so much better than bickering over fractions of market share with other (and economically superior) exporting nations — the very countries that Britain depends upon in many ways.

Here’s to ‘Win-Win’ paradigms and growing the global economic pie; A plan that will work for the United Kingdom more than almost any other country — while preventing harm to Britain’s present and important trade relationships.

This Week in Brexit: UK leaves London Fisheries Convention

by John Brian Shannon | Reposted from LettertoBritain.com

Environment Secretary Micheal Gove has signaled that the UK intends to leave the London Fisheries Convention (LFC) as the first move towards an eventual Brexit completion within 24 months.

The original London Fisheries Convention was signed in 1964 and it allowed vessels from Belgium, France, Germany, Ireland and the Netherlands to fish in British waters in the 6 to 12 nautical mile range which was a significant upgrade for those fishers as UK coastal areas are abundant fishing grounds.

(It was also a significant upgrade for those who ship any kind of contraband to the UK because it allows them to get much closer to British shores and drop their loads with less chance of being detected by police — and people wonder why London has the world’s highest cocaine concentrations in their wastewater treatment plants!)

Once Brexit completes, UK fishers will obviously lose their right to fish in EU waters in the 6 to 12 nautical mile range.


The Tory government said the change will allow more direct control and better responsibility for fisheries management in the 0 to 12 nautical mile range.

“Leaving the London Fisheries Convention is an important moment as we take back control of our fishing policy. It means for the first time in more than 50 years we will be able to decide who can access our waters. This is an historic first step towards building a new domestic fishing policy as we leave the European Union – one which leads to a more competitive, profitable and sustainable industry for the whole of the UK.”Michael Gove, UK Environment Secretary

“This is welcome news and an important part of establishing the UK as an independent coastal state with sovereignty over its own exclusive economic zone.”Barrie Deas, National Federation of Fishermen’s Organizations

“For years, successive UK governments have blamed Brussels for their own failure to support the small-scale, sustainable fishers who are the backbone of our fishing fleet. If Brexit is to herald a better future for our fishers, the new Environment Secretary Michael Gove must keep the 2015 Conservative Party manifesto commitment to re-balance fishing quotas in favour of ‘small-scale, specific locally based fishing communities’.”Will McCallum, Greenpeace UK


In 2015, the British fishing industry caught 708,000 tonnes of fish worth £775 million.

A claimed 10,000 tonnes of fish were caught by EU countries in Britain’s waters in the 6 to 12 nautical mile zone. (2015 statistics) It could be much higher than that, but nobody would know because nobody is policing it!

That’s a minimum of £17 million in fish that leaves Britain each year. Fish that will now be caught by UK fishers (and presumably) will be processed by UK fish processing and packaging plants, adding even more value to the British economy.

Scottish government says UK is right to leave fishing deal (BBC)

It’s true that since 1964 when the LFC came into existence the UK fishing industry lost millions of pounds sterling and hundreds of jobs every year for the privilege of belonging to the then-European Community / now European Union.

As so often happens in the postwar relationship between Britain and continental Europe, it is Britain that winds up subsidizing the continent.

How else can it be termed anything but ‘subsidizing the continent’ when millions of pounds sterling (in this example, raw fish) and hundreds of fish processing and packaging jobs were handed to the continent every year since 1964?

Here! Take our jobs! We’re British!’

Now that PM Theresa May has delegated this poignant case to Secretary Gove with instructions to effect a win for UK fishers, fish stocks will rebound, there will be more jobs for UK fishers, there will be more UK fish processing and packaging jobs, and anti-contraband efforts in UK waters will become more effective.

And that’s no fish story!


Related Article:

This Week in Brexit: Expat rights

by John Brian Shannon | Reposted from LetterToBritain.com

Now that Brexit issues of substance have percolated up into the mainstream everyone has stopped talking about the Tories getting their electoral wings clipped and we can now move on to far more important matters! And just in time folks, it was getting a bit much.

The Queen looked positively radiant reading aloud the document that will change European history on both sides of the English Channel.

Some comments were made about her EU-bleu hat which had five golden embellishments reminiscent of the gold stars on the EU flag. If so, it’s the Queen’s prerogative what to wear and if she wanted to send a polite message to the European Union via her choice of attire, why not?

If you asked 20 people what that message might have been, you’d probably get 20 different answers. Note to conspiracy theorists; Knock yourselves out!

You must be dying to know what my read of the Queen’s outfit is: After all, you ARE reading this blog, aren’t you?

I think the Queen knows there are hurt feelings in Brussels and that others in the EU are sad to see Britain leave. And it could be that as she read the speech written to begin the process to take the UK out of the EU, she wanted to politely emote, ‘We are leaving your Union, but we respect you and want to keep good relations with you.’

How could it be other than that? What else would you expect from the reigning Monarch of the United Kingdom? Of course, continental Europe will still need the UK… and the United Kingdom will still need the EU.

Trade, a common European defence, social causes, families, etc. are so interlinked between Britons and the people across the Channel that good relations must be preserved, sparing no effort.


EU Membership is no guarantee of a booming economy

Over 175 nations in the world are not members of the EU, nor do they have trade agreements with the EU.

Some nations, even those in close proximity to the EU declined to join the Union. And some, like Norway, Switzerland and others simply worked out different arrangements with the EU.

Greenland applied for EU membership, then withdrew its application once Greenlanders were consulted via referendum. Yet, Norway, Switzerland and Greenland have continued along just fine without EU membership, as have other European and non-European states.

The UK will get along fine without EU membership

Yes, some things will be better for Britons. Yes, there will be a period of adjustment after Brexit. And minor economic disruptions could occur here and there, at various waypoints along the Brexit timetable.

But what negotiators on both sides must remember is that, ‘What’s good for the UK, is good for the EU.’

Large EU companies like BMW and Mercedes don’t want a recession in the UK! It’s one of their best markets. Large British companies like BP (British Petroleum) want continental Europe to thrive, else how can it remain profitable?

Arguably, small business is even more dependent upon thriving economies on both sides of the English Channel.

Which is why Brexit must be made to work!

If the EU ‘stabs’ the UK, it will be the EU that bleeds! The reverse is also true!

Hurt feelings aside, let’s hope that negotiators on both sides are dedicated to ensuring they aren’t the cause of their own ‘bleeding’ and that they continually work towards a better agreement — one that works for Britons and EU citizens alike.

RECIPROCITY should be the watchword every day until Brexit negotiations are concluded. And thenceforth, all relations between the two sides should be guided by that ultra-important word in perpetuity.

UK and EU -- RECIPROCITY definition by Cambridge University Press

What all this is leading up to is the present discussion surrounding expat privileges in both jurisdictions — succinctly covered by Laura Kuenssberg, Political editor at the BBC, here.

But we can’t have one ruleset for UK citizens who live, work, attend university, or are retired in EU nations… and a different ruleset for EU citizens who live, work, attend university, or are retired in the United Kingdom.


SSTWB: Simple Solutions Tend to Work Best

So with that in mind let’s declare that from January 1st 2018, any EU citizen who moves to (or already lives in) the United Kingdom for any reason (work, school, retirement, or to live as one of the idle rich) must register with the UK government and pay an annual £100 fee per each family member (in the case of EU citizens that move to the UK) and for those Britons who move to the EU for any reason (work, school, retirement, or to live as one of the idle rich) must register with the government of that jurisdiction and pay an annual €100 fee per each family member.

Once they have registered and paid, it thereby proves their status and good intentions to the jurisdiction in which they intend to live (or already live) and they should have the ability to join the NHS (in the case of EU citizens living in the UK) and pay the same NHS contributions as Britons do.

Of course, those contributions are scaled to income so EU citizens would need to provide a copy of their income tax form to the UK government when paying their annual £100 per family member expat tax in order to qualify for the subsidized NHS rate appropriate to their income level.

And all of it should be easily done every year — either online or in a government agent’s office. And it should be a simplified form so that the entire process takes less than 5 minutes. Keep it simple!

  • Name
  • Address
  • Work or University address
  • Income tax ID number
  • Pay £100 per family member here via credit card

UK citizens that live, work, or retire in the European Union should receive corresponding privileges — the only difference being the value of the currency — the €100 annual fee per expat vs. the £100 annual fee per expat.


Issues of Law and (worryingly) Issues of Precedent arise

Some (very unreasonable) EU people suggest that EU laws should apply in Britain! (Yes, some people have actually said that aloud)

Do I have to say it? It is the very definition of Bureaucracy Run Amok!

And further, they’ve stated that EU citizens living in Britain should be bound by EU laws, and any court proceedings that involve EU citizens living in Britain would need to be conducted in an EU-court located somewhere in Britain. Facepalm!

It’s one of the most absurd things I’ve heard, and people who suggest such things need years of psychological treatment (You need to be deprogrammed Comrade Bureaucrat, as you’re no longer in the Collective!) and remains true EVEN IF they support having British courts in the European Union to adjudicate Britons who break UK laws while in the EU.

Stop the insanity!

FACT: The Colonial Era is over. FACT: The United Kingdom was never a colony of the European Union. FACT: The United Kingdom really is leaving the European Union!

Trying to pull such stunts shows how buried in the sand, are some heads in the EU, even at this late Brexit date.

There is only one way it will work

EU citizens must obey the laws and be bound by British courts whenever they are in Britain — and the reverse is just as true — Britons living in the European Union must obey the laws and be bound by EU courts whenever they are in the EU. Full stop! No other choices available!

Although I’d certainly support a reciprocal incarceration agreement, whereby once sentenced, a UK citizen (for example) could apply to serve out his/her prison time in a United Kingdom prison instead of in the EU where he or she broke EU laws.

EU citizens who break the law in the United Kingdom should likewise be offered the opportunity to serve out their prison term in the EU.

And all of it should be simplified and standardized, so that any such prisoner requests could be completed within 48 hours. People in prison have families too — and why exactly should they be punished?


IN SUMMARY

Once we ditch the crazy people from the negotiations, mutual interests should prevail and allow the economies of Europe, a common European defence, commerce, industry, and family ties to remain unaffected, and in some ways improved. Above all else, overall improvement in the multifaceted relationship between the UK and the EU should be the goal for negotiators.