Transition to be agreed with Brexit trade deal: UK's PM May

[webfact]

Transition to be agreed with Brexit trade deal: UK's PM May

By Kate Holton and William James

 

Britain's Prime Minister Theresa May leaves 10 Downing Street in London, October 23, 2017. REUTERS/Mary Turner

 

LONDON (Reuters) - British Prime Minister Theresa May signalled on Monday that any Brexit transition deal would be put together as part of a wider trade agreement - potentially stripping companies of the time they need to prepare to leave the European Union.

 

International businesses have become increasingly vocal in recent weeks over fears that Britain could crash out of the world's biggest trading bloc without a deal, sending shockwaves through global markets and fracturing intricate supply chains.

 

May has promised to retain full access to the EU's single market for two years after Brexit to limit the disruption for companies. But she told parliament on Monday the full terms of any transition, or implementation period, would be agreed at the same time as the country agrees a new trade deal.

 

That needs to be completed this time next year, just six months before Britain is due to leave the EU in March 2019.

 

"An implementation period is about a period which is adjusting to the future relationship," May said. "That's the basis on which I put it forward to the European Union, and that's the basis on which we'll be negotiating an agreement on it."

 

May's spokesman said the government position was as set out in the prime minister's speech in Florence, responding during a daily briefing session to repeated questions about when companies would see a final transition deal.

"We're looking to finalise a deal all in one go," her spokesman said.

 

Several opposition lawmakers also asked the prime minister to clarify what the stance would mean for businesses.

 

Concern over Britain's future trading relationship has been growing for weeks. The country's five leading business organisations warned on Monday that companies would start moving jobs and investment out of the country if they do not get a transition deal soon.

 

In a draft letter to Brexit minister David Davis, they warned that time was running out for companies that need to make investment decisions at the beginning of next year.

 

"Agreement (on a transition) is needed as soon as possible, as companies are preparing to make serious decisions at the start of 2018, which will have consequences for jobs and investment in the UK," the draft letter from the five groups says, according to a person familiar with the situation.

 

"And the details of any transitional arrangement matter: the economic relationship the UK and EU have during this time-limited period must match as close as possible the status quo."

 

The letter is due to be sent from Britain's five leading business groups, the CBI, the British Chambers of Commerce, the Institute of Directors, the Federation of Small Businesses and the manufacturing group EEF.

 

Their intervention follows a tweet from the boss of Goldman Sachs <GS.N>, Lloyd Blankfein, who said last week that he was looking forward to spending more time in Frankfurt after Brexit.

 

"Just left Frankfurt," he said. "Great meetings, great weather, really enjoyed it. Good, because I'll be spending a lot more time there. #Brexit," he tweeted.

 

London Mayor Sadiq Khan, a member of the opposition Labour Party who campaigned to remain in the EU, said Blankfein's comment reflected a wider thinking in the business community and warned that others could follow suit.

 

"He's articulating publicly what many CEOs and investors who love working in London have been saying privately, which is that unless they have certainty about what happens after March 29, 2019, they have got to make a plan B," he said.

 

"He's not bluffing. When I speak to businesses each day, they're not bluffing."

 

(Editing by Larry King)

 

-- © Copyright Reuters 2017-10-24

[mfd101]

Yes, the firms aren't bluffing and the Europeans aren't bluffing. So who does that leave who's bluffing?

 

Don't seem to have heard from the lovely Nigel for a while ...

[generealty]

If you see his Facebook following, he is online and verbal every single day, so you are not looking very hard.

 

[gamini]

19 minutes ago, generealty said:

If you see his Facebook following, he is online and verbal every single day, so you are not looking very hard.

 

 

19 minutes ago, generealty said:

If you see his Facebook following, he is online and verbal every single day, so you are not looking very hard.

 

who wants to read his verbal rubbish?

[mfd101]

Oh no! I've been missing out!

[dick dasterdly]

Which is precisely why May needs to state NOW that the UK will be leaving in '19 at the end of the article 51 two year 'notice' period.

 

It will end the uncertainty and - even more importantly IMO - force the EU into immediate proper negotiations, rather than their current stance of dictating even the order of negotiations!

 

Ridiculous - as the money paid to the EU for leaving is either:-

1) a legal obligation that should be (relatively) easily calculated or

2) a goodwill gesture to pay more than is legally obligated, in return for similar goodwill gestures on trade agreements.

 

Why prolong the uncertainty for yet another 2 years?

Edited October 24, 2017 by dick dasterdly

[jesimps]

7 hours ago, mfd101 said:

Yes, the firms aren't bluffing and the Europeans aren't bluffing. So who does that leave who's bluffing?

 

Don't seem to have heard from the lovely Nigel for a while ...

Nothing like wishful thinking! Your bogeyman is making statements most days in the media.

[SheungWan]

4 hours ago, dick dasterdly said:

Which is precisely why May needs to state NOW that the UK will be leaving in '19 at the end of the article 51 two year 'notice' period.

 

It will end the uncertainty and - even more importantly IMO - force the EU into immediate proper negotiations, rather than their current stance of dictating even the order of negotiations!

 

Ridiculous - as the money paid to the EU for leaving is either:-

1) a legal obligation that should be (relatively) easily calculated or

2) a goodwill gesture to pay more than is legally obligated, in return for similar goodwill gestures on trade agreements.

 

Why prolong the uncertainty for yet another 2 years?

The Hard Brexiteers are having kittens (see above). Part of the problem is the UK infighting inside the Cabinet, so trying to work out what they want a bit of an issue at the moment. http://tinyurl.com/ycdenzjc And then there is the Hard Brexiteer wilful ignorance re economic implications. They don't care. Its all sunny uplands on exit. Right.

Edited October 24, 2017 by SheungWan

[Grouse]

1 hour ago, SheungWan said:

The Hard Brexiteers are having kittens (see above). Part of the problem is the UK infighting inside the Cabinet, so trying to work out what they want a bit of an issue at the moment. http://tinyurl.com/ycdenzjc And then there is the Hard Brexiteer wilful ignorance re economic implications. They don't care. Its all sunny uplands on exit. Right.

Time to grab the No Brexit offer from Tusk, regroup and think about it....

[lungbing]

Companies have know the UK will be  leaving the EU for well over a year already.  Nothing was done for the first year for some reason, now there's two years notice until Mar 2019 and they still want more time to adjust?  It's a crap company management that needs 5 years to adjust to change in circumstances.

[Guest]

13 hours ago, mfd101 said:

Yes, the firms aren't bluffing and the Europeans aren't bluffing. So who does that leave who's bluffing?

 

Don't seem to have heard from the lovely Nigel for a while ...

I guess it's time to UK people to learn that the people who 'represent' their interests locally in Britain, or wider in EU or even globally around the word.. are not the good people. 

Most of us Europeans didn't really knew what EU folks were doing, prior Brexit. We knew that we enjoyed various freedoms within out new and large country. 

Since then we have learned that UK and it's childish politics has been hindering our development.

Now we know that we'll be free to go forward. 

[KBsinter]

So the big 5 need time to regroup in Europe........you can"t make this up, or can you ??

[SABloke]

UK Brexit is a lot like a Thai election (agree with it or not, the powers that be always find another reason that it can't happen according to the "road map" or whatever the EU equivalent is) I remember Cameron clearly stating that the UK would enact Article 50 in Oct 2016. That never happened by the way 

[CG1 Blue]

The UK has invested countless billions in EU projects over the years, being one of the few net contributor countries.  Usually in a divorce the two parties share out the assets they have invested in throughout the relationship.

 

And yet in this divorce the UK are expected to receive nothing from the divorce settlement, and are even being asked to pay a 'divorce bill'. Ludicrous!

 

 

[CG1 Blue]

58 minutes ago, oilinki said:

I guess it's time to UK people to learn that the people who 'represent' their interests locally in Britain, or wider in EU or even globally around the word.. are not the good people. 

Most of us Europeans didn't really knew what EU folks were doing, prior Brexit. We knew that we enjoyed various freedoms within out new and large country. 

Since then we have learned that UK and it's childish politics has been hindering our development.

Now we know that we'll be free to go forward. 

There are plenty of childish politicians in the EU parliament. This has become even clearer since we voted to leave.

 

Good luck with your large country.

[George FmplesdaCosteedback]

It seems businesses are just busy sat around moaning when they should be planning and organising...

EU and UK seem to playing the blame game aided by German and British press.

Read between Tusk's lines and you can tell the EU haven't got a clue where the money for 2020 to 2025 budget will come from.

 

 

[tomacht8]

PM May lost in translation?

 

Barnier said Britain must accept the full economic and legal status quo in a transition period after it leaves the EU and should expect no tailor-made terms on trade in its future relationship.

 

Asked if that meant there could be “a specifically British model” along the lines of the “bespoke arrangements” May has referred to without giving detail, Barnier replied simply: “No.”

 

 

http://uk.reuters.com/article/uk-britain-eu-barnier/no-bespoke-brexit-transition-means-status-quo-barnier-idUKKBN1CT19I

Edited October 24, 2017 by tomacht8

[SheungWan]

4 hours ago, George FmplesdaCosteedback said:

It seems businesses are just busy sat around moaning when they should be planning and organising...

EU and UK seem to playing the blame game aided by German and British press.

Read between Tusk's lines and you can tell the EU haven't got a clue where the money for 2020 to 2025 budget will come from.

That's right. You tell businesses how to run their businesses.

[CG1 Blue]

13 hours ago, George FmplesdaCosteedback said:

Read between Tusk's lines and you can tell the EU haven't got a clue where the money for 2020 to 2025 budget will come from.

That's exactly right.  The EU are so reliant on UK funding.  Juncker, Barnier and co are also no doubt panicking inside about their big fat pensions shrinking.

I suppose Germany and France will have to increase their contributions. 

[Khun Han]

15 minutes ago, CG1 Blue said:

That's exactly right.  The EU are so reliant on UK funding.  Juncker, Barnier and co are also no doubt panicking inside about their big fat pensions shrinking.

I suppose Germany and France will have to increase their contributions. 

 

According to a recent report in the FT, Merkel's coalition with the Left, in order to form a government, is going to use up all available money (to 'bribe' the Left with social funding and such). There will be no extra money for the EU from Germany. And France is flat broke.

[SheungWan]

24 minutes ago, Khun Han said:

 

According to a recent report in the FT, Merkel's coalition with the Left, in order to form a government, is going to use up all available money (to 'bribe' the Left with social funding and such). There will be no extra money for the EU from Germany. And France is flat broke.

France is flat broke: http://www.telegraph.co.uk/business/2017/05/30/french-economy-track-best-year-growth-since-2011/

[Khun Han]

http://www.bbc.co.uk/news/business-41747940

[George FmplesdaCosteedback]

On 25/10/2017 at 5:37 AM, SheungWan said:

That's right. You tell businesses how to run their businesses.

You lost me Bill. You think UK businesses should just sit and moan rather than get on and make positive plans?

Surely not.

[SheungWan]

11 minutes ago, George FmplesdaCosteedback said:

You lost me Bill. You think UK businesses should just sit and moan rather than get on and make positive plans?

Surely not.

Too many Brexiteers lost when it comes to economics, but then that is not their most important card as far as they are concerned anyway.

Edited October 27, 2017 by SheungWan

[George FmplesdaCosteedback]

On 25/10/2017 at 2:34 AM, tomacht8 said:

PM May lost in translation?

 

Barnier said Britain must accept the full economic and legal status quo in a transition period after it leaves the EU and should expect no tailor-made terms on trade in its future relationship.

 

Asked if that meant there could be “a specifically British model” along the lines of the “bespoke arrangements” May has referred to without giving detail, Barnier replied simply: “No.”

 

 

http://uk.reuters.com/article/uk-britain-eu-barnier/no-bespoke-brexit-transition-means-status-quo-barnier-idUKKBN1CT19I

The attitude we always expected, the EU has little intention of a real negotiation in the same way it imposes laws by edict made by appointed presidents and commissioners etc.

Money is the key, as the EU will have to drastically cut the 2020 - 2025 budget without UK funding. The ex- soviet block are up in arms already, and if the money dries up they too will be voting Leave soon.

A "no deal option" must remain on the table, as WTO trade terms will do for an interim period of a few years.

We could rejoin Efta too of course.

 

 

 

 

[SheungWan]

Just now, George FmplesdaCosteedback said:

The attitude we always expected, the EU has little intention of a real negotiation in the same way it imposes laws by edict made by appointed presidents and commissioners etc.

Money is the key, as the EU will have to drastically cut the 2020 - 2025 budget without UK funding. The ex- soviet block are up in arms already, and if the money dries up they too will be voting Leave soon.

A "no deal option" must remain on the table, as WTO trade terms will do for an interim period of a few years.

We could rejoin Efta too of course.

Lost in a parallel universe of Brexiteer automatons.

[George FmplesdaCosteedback]

1 minute ago, SheungWan said:

Too many Brexiteers lost when it comes to economics, but then that is not their most important card.

Brexit is not just about economics, but trade will continue one way or another. The EU wants to continue selling the UK more than they buy. The UK has to look at selling some more to the world than it does already too.

The financial sector is coveted by the Germans and French, but it will not be easy for them to grab.

If you are a businessman, not a comedian, then you should be active, not submissive, passive or complacent in this environment.

 

 

[George FmplesdaCosteedback]

12 minutes ago, SheungWan said:

Lost in a parallel universe of Brexiteer automatons.

Ha ha. Reality is the UK is leaving the EU, time you stopped dreaming Bill, it's not groundhog day where you can do it over and over until you get it right.

[George FmplesdaCosteedback]

On 25/10/2017 at 3:19 PM, SheungWan said:

France is flat broke: http://www.telegraph.co.uk/business/2017/05/30/french-economy-track-best-year-growth-since-2011/

You should read the report to the end.

It is also based on an in house EU assessment body.

https://en.wikipedia.org/wiki/Economy_of_France

 

Strange they pay almost nothing in net contributions to the EU.

 

 

Edited October 27, 2017 by George FmplesdaCosteedback