Welcome to European Tribune. It's gone a bit quiet around here these days, but it's still going.
Yeah but it is more than a bilateral problem.

The UK government will not want to limit the importing of medical supplies, it will be the EU wanting to limit the exporting. So that is a border control problem for the EU, driven by commercial and philosophical goals related to trade.

But the lack of import barriers on the UK side will allow open season for fake drugs and any other goods from factories in the third world. That is a problem for the UK, but it is more than a commercial or philosophical goal, it is a practical matter of people dying from fake insulin or whatever.

So, maybe answering my own question, maybe it will be the UK that will find itself in the position of needing border management.

by asdf on Mon Jul 1st, 2019 at 02:59:03 PM EST
[ Parent ]
Let us assumes that existing controls will continue to apply to all non EU27 and non UK imports/exports, until and unless Fox negotiates his magnificent trade deals with Madagascar etc.

I don't know why any country would want to limit its exports, as that helps its own industry. So the problems relate to import controls and concerns about quality controls or tariff evasion.

The Brits keep saying they will keep their borders open, and expect the EU to reciprocate. NOT GOING TO HAPPEN.

So the problem for the UK will not be shortages of medicines etc., but shortages of cash to pay for them as UK exports experience increasing difficulty accessing the Single Market.

Ireland will be expected to act as a gatekeeper for any UK goods trying to enter the EU26 via Ireland, and that it will do via controls at all Irish air/sea ports.

There remains the problem of UK goods accessing the Irish Market. The UK had its only significant trading surplus with Ireland, so restrictions there could be very damaging for both. Both are also promising to keep the border open, so the only alternative is controls at the Irish sea and/or trusted trader schemes within Ireland.

The administrative burdens (and or tariffs) involved could see Irish businesses seek alternate EU26 sources of supply. Equally Irish exporters to the UK (chiefly pharma and agri-food) will seek alternate markets in EU 26. Think Irish Cheddar replacing UK Cheddar on EU supermarket shelves.

Overall Ireland/UK trade has declined from 70% of total Irish Trade at EU accession in 1973 to 14% now. That trend will continue, probably sharply accelerated by Brexit and Sterling devaluation.

The problems for the Irish economy will be largely internal, with already booming Dublin's economy boosted by UK financial services companies relocation to Dublin, but already struggling rural areas suffering even more because of loss of food exports to the UK. Political dynamite for the government. Expect intra-EU talks to facilitate substitution of UK exports by Irish Exports.

I don't expect the DUP veto to survive for long in this scenario.

Index of Frank's Diaries

by Frank Schnittger (mail Frankschnittger at hot male dotty communists) on Mon Jul 1st, 2019 at 04:02:48 PM EST
[ Parent ]
The direct effect of no deal Brexit is the regulatory framework. What needs new certifications etc?

Then you have the global supply chains. Some things made in Britain needs other things made in the EU and vice versa. With just in time supply chains spanning the globe, it is hard to know where there will be absence of goods, but it's likely to appear.

And then comes balance of payment when the center of global money laundering moves away.

by fjallstrom on Tue Jul 2nd, 2019 at 02:26:06 PM EST
[ Parent ]


Top Diaries

Italian government collapse

by IdiotSavant - Jan 15

Dutch Government Collapse

by Oui - Jan 16

A Rush To Judgement Day

by Oui - Jan 17

A Long War?

by Frank Schnittger - Jan 8

Israel and A Presidential Election

by Oui - Jan 14

Occasional Series