Brexit: An Opportunity to Create a Better UK / EU Relationship?

As European Union negotiators can’t see any reason to support Brexit, they will continue to keep the European Union’s best interests in mind — which is to say, they will try to stop, slow, obfuscate, or otherwise derail the Brexit process by almost any means possible.

And why shouldn’t they feel that way? The EU is a net beneficiary of £8.6 billion annually courtesy of the UK, so there’s little incentive to stop a contribution that is larger than that of all other EU-member countries except Germany.

If there are any Brexit benefits to the European Union, nobody has bothered to tell EU negotiators or EU media channels.

So how would anyone know if there will be Brexit benefits for the EU when the UK government hasn’t mentioned them once? And yet there are likely many Brexit benefits — for both sides — that just aren’t being discussed.


How to Sell a Product or Idea

When you’re trying to sell apples to a potential customer, giving them a nonstop spiel about how much *you* like apples won’t help you sell many apples!

But if you hand your potential customer a hot glass of mulled apple cider and walk them past appealing displays of fresh apples, followed by a pleasant tour through the on-site bakery bursting with the aroma of piping hot apple pies and offer them a tantalizing sample at the exact moment their interest in apples is high, you’ll sell more apples.

If you’re selling cars, you don’t spend your time telling the customer about the specifications of the car and how it can transport you here and there with ease. Any ol’ car can do that.

Instead, you answer their questions about the car, you offer a test drive so they can experience how much better it drives, sounds, and looks than their present car, all of which work together to help them fall in love with the car you’re selling.

If you’re a really smart salesperson, you’ll slap a dealer plate on the new car and let your customers take it home for the weekend so they can show it off to their comrades who will help convince them the new car is much better than their old jalopy.

And have you ever noticed that beer commercials don’t show you endless cans of beer and a quick snapshot of the brewery?

Breweries are highly experienced marketers and they want to show you good-looking people having a great time socializing with their friends and family in a picturesque setting or while engaged in enjoyable activities.

Look at that product placement! There’s the can of beer right beside those sizzling steaks on the barbecue while those great people in the background are enjoying their evening.

Considering a run to the beer store? Well yes you should — because you’re a good person, you work hard, you love spending quality time with your friends and family and you deserve a summer’s evening just like the people on that commercial. That’s the message.

Marketing types call this Feature/Benefit selling, ‘Selling the sizzle, not the steak’ which isn’t about what the product or service actually is, it’s about what it can do for you and how it can make you look or feel happier and better.


What Isn’t Theresa May Doing?

She isn’t selling the benefits of Brexit to the EU.

We know there are many benefits for Britons but even that has been under-sold.

In the early days following the Leave referendum it might’ve looked to Remainers as though Brexit could still go either way, so Theresa May was probably wise to move cautiously at first. But that time has passed. Almost every person and business in Britain wants to get beyond the present period of uncertainty and get on with creating a fresh start for the UK outside the European Union.

The right time to begin crafting a trade agreement that works even better than the present trading system has arrived. And now that we’re at this point in time, under-selling the benefits of Brexit to UK and EU citizens is not the way forward.


What Is The Way Forward?

In a word, Vision.

Theresa May needs to put on her ‘Steve Jobs hat’ and figure out what the best possible Brexit vision looks like from both the UK and EU perspectives.

Starting with a completely clean sheet; What would that look like in its entirety? What would it look like five years on?

If she doesn’t offer an inspiring vision that a majority of people on both sides of the English Channel can ‘buy-in’ to her government will be paddling upstream all day, every day, for as long as she remains Prime Minister. (And that’s definitely a no-fun lifestyle, even for a British PM)

Once the vision has been considered by Theresa May, only then should it be communicated to her Cabinet, while the Department for Exiting the European Union (DExEU) should oversee all other UK ministries and departments as they compile reports that describe what their best-case scenario would look like in practical terms.

Then it’s simply a matter of working to those ideals as much as is practicable to create a Vision Statement that can be released to the public, sans the excruciating detail required in government policy papers.

“This is the Vision we’re working toward…” (Giving UK and EU citizens a view of what a better Brexit looks like)

‘How do you like those apples?’ someone cheekily asked.


The Three Principles Common to all Organizations

  1. Vision (or Mission)
  2. Leadership
  3. Management

Without equal weight given to each of those three factors any organization or project will ultimately fail.

It can’t be emphasized enough; Endless discussion about the best Brexit from the UK standpoint are irrelevant to European Union citizens and businesses. Brexit must work for the EU too, or it will be increasingly uncomfortable and expensive for the UK as time rolls forward.

Theresa May needs to find what things will work better for the EU in a post-Brexit world and promote those items on every visit to the EU. If there aren’t any Brexit positives for the EU, she better create some as they negotiate forward to a final trade and financial services agreement.

Without an overarching vision even the best management and leadership will underperform. Perhaps severely.

But as soon as May gives the order to each of her 25 Ministerial Departments and 20 non-Ministerial Departments to submit their best-case scenario (their best hopes and aspirations showing what their jurisdiction could look like five years on from Brexit) and from that she will be able to write a one page vision for each of the 45 departments.

From there she will need to direct the Department for Exiting the European Union to create a list of items that could be seen as positives by EU governments, EU businesses and EU citizens. Those are the apples she needs to sell on every visit to the European Union. And then sell the ‘sizzle’ Theresa, not the steak.


Summary

Theresa May must ‘create’ and ‘sell’ (Vision + Leadership + Management + Marketing) a Brexit that will benefit both the UK and the EU and begin to disseminate that better vision throughout both blocs.

Throwing £40 billion at the EU now and (potentially) another £40 billion to obtain a trade and financial services agreement isn’t visionary — it’s ‘buying an agreement’ with taxpayer’s money — which is fine if that’s the only option. But it isn’t the only option.

Getting citizens, businesses, and governments on both sides of the English Channel to buy-in to a grand vision that works even better than the present paradigm without it costing another £40 billion, must be Theresa May’s Number One Priority before the October 2018 Brexit deal-making deadline arrives.


[P.S. to Michel Barnier, chief negotiator for the European Union] Jeez, Michel, for £40 billion shouldn’t the UK have received a bespoke customs deal, a bespoke trade deal, a bespoke financial services agreement *and* a chocolate mint on every UK pillow?


Written by John Brian Shannon

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

This Week in Brexit: Trump Promises a Trade Deal

by John Brian Shannon | Reposted from LetterToBritain.com

This Week in Brexit

On the sidelines of the G20 Hamburg summit, U.S. President Trump found time to meet with UK Prime Minister May and to offer welcome words that the United States will sign a bilateral trade deal with the UK as soon as Brexit is complete.

It’s very good news for the UK and also for PM Theresa May (who has had a rough time in domestic politics of late) and it was obvious that the U.S. president went out of his way to assure Ms. May that a reciprocal trade agreement — one that works for both America and for Britain — is one of his administration priorities.

So much of the UK’s post-Brexit success will hinge on bilateral trade accords because no matter how good the final Brexit agreement, there will be some amount of economic adjustment for Britain in the months following Brexit. A quick trade agreement with the United States will not only ease the Brexit transition, but also  improve the UK (and America’s) economy indefinitely.

It was a classy thing for Mr. Trump to do for Theresa May knowing that her domestic political fortunes have taken a hit. Let’s hope the Prime Minister is able to return the favour at some point during the Trump administration. That sort of respect makes for strong allies.

During WWI, but especially during WWII the relationship between America and Britain was raised to a very high level by Prime Minister Winston Churchill and President Harry S. Truman, and in the postwar era during a time of unprecedented economic growth, President Ike Eisenhower continued the wise course set by his predecessor.

However, it could’ve so easily gone the other way if the leaders hadn’t gotten along.

Both sides would’ve missed geopolitical opportunities of huge importance such as the formation of NATO, the establishment of the Nuremberg trials and the creation of other institutions and agreements such as Bretton Woods and the IMF. Without the ambition of the UK and the power of the United States those things simply wouldn’t have occurred.

Millions of Americans and Britons prospered over the past 72 years because their postwar political leaders *didn’t drop the ball* and made a conscious decision to *make the best of the postwar relationship* for their respective people.


What Kind of Free Trade Agreement Should Prime Minister May and President Trump pursue in the post- Brexit timeframe? (Hint: A ‘Win-Win‘ agreement)

Present-day Prime Minister of Canada Justin Trudeau was still in school when Canada first approached the European Union to ask about a bilateral trade deal, and that many years later it still hasn’t come into effect. (It’s about to, they say)

It will have taken eight years to hammer out and begin to abide by, the Comprehensive Economic and Trade Agreement (CETA) which arrives so late in the game and market conditions do change over time (remember way back to the 2008/09 financial crisis when the CETA agreement was first floated?) that some of the hard-won negotiating points are no longer relevant and may never be finalized.

Canada, EU to provisionally apply CETA in September (CBC)

I’m sure it’s a fine agreement and congratulations are due. However, with America and Britain at the controls of a mutually beneficial trade agreement between two friendly Anglophone nations, it should take less than a year from first discussion to signed agreement.

Though we don’t know what shape an Anglo-American trade agreement might look like from our vantage point in July of 2017, probably the best idea would be for both sides to embrace reciprocity and fair dealing in all trade matters as a way to enhance both economies, and as a way to later attract other Anglophone nations such as Canada, Australia and New Zealand to sign on to such an agreement.

Hitting the Right Note with Commonwealth of Nations member India

What a great thing it would be if all Commonwealth nations eventually agreed to sign on to a U.S. / UK trade agreement. Commonwealth of Nations member India has 1.5 billion consumers alone!

Both America and Britain could add 5% to their respective GDP just on the improved trade flows of doing business in the booming Indian economy.

“Although India’s rapid population growth is part of what accounts for the forecasted jump […] that is only part of the story. Drastic improvement in terms of per-person productivity due to capital investments and better technology will play an even more important role.

“PwC predicts that India’s economy will grow by about 4.9% per year from 2016 to 2050, with only 0.7% of that growth caused by population growth.

“India’s economy is currently the third-largest in the world, and is expanding at an estimated annual growth rate of 7.1% for the 2016-17 financial year. —  India’s economy is forecast to surpass that of the US by 2040  (Quartz)

Both America and Britain just need to hit the right note with India — a respectful note — in order to profit from the massive growth that is available in that burgeoning country.

Working out an Anglo-American trade agreement with a view to adding all Commonwealth member nations within 24 months, guarantees that other powerful trade blocs don’t beat the Anglo-American alliance to supply the rocketing Indian economy with much-needed goods and services.

Projected growth for selected countries – As measured by Purchasing Power Parity (PPP)

UK Brexit free trade deal with United States and with Commonwealth partner India
UK Brexit free trade deal with United States and with Commonwealth partner India.


It’s so obvious but still worth repeating; ‘Hitch your wagon to the fastest horses if you want to place well in the race.’

Britain has the Commonwealth of Nations connections, Britain needs a trade agreement with NATO ally America and with Commonwealth partner India, and the United States wants to increase mutually beneficial trade with Britain and its 2-billion-strong Commonwealth partners.

In all of human history, rarely has such a synergistic match-up suddenly appeared where different but extremely valuable benefits are available to all three parties.

Just as nobody predicted the massive Japanese economic boom which began to form the day after WWII ended, an Anglo-American trade agreement, followed by a Commonwealth trade agreement (before other trade blocs grab the low-hanging fruit!) could match or exceed the massive performance statistics of the postwar Japanese economy.

Dear United States and Commonwealth of Nations, Let’s not miss this rather obvious ‘Win-Win-Win’ opportunity!

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!


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