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Cont: Brexit: Now What? 7th heaven...

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I think the forty billion will emerge as a massive boost to no-deal compared to anything else.

I'm not sure that giving the EU the excuse to say that the UK is walking away from its current financial obligations is the best way to start negotiating a new trade deal with them.

Also, I think that £40bn will be a drop in the bucket compared to the full cost of mitigating the effects of a no-deal Brexit for the government, let alone for the economy as a whole. :(
 
Just a shame that what's left of the British manufacturing industry is located in mainly leave areas, and these will bear the brunt of these cheap imports and the soon to be ex-workers won't be able to afford them.

To be honest, although manufacturing grabs a lot of the headlines, it's not a huge sector for the economy as a whole. A significant proportion of what is classified as manufacturing will remain in the UK post-Brexit in any case and a lot of the cheap imports aren't manufactured here in any case.

IMO it's the service sector, and in particular financial services, which will take a battering and as it accounts for 80% of GDP the damage will be greater. It also has a positive balance of payments.
 
To be honest, although manufacturing grabs a lot of the headlines, it's not a huge sector for the economy as a whole. A significant proportion of what is classified as manufacturing will remain in the UK post-Brexit in any case and a lot of the cheap imports aren't manufactured here in any case.

IMO it's the service sector, and in particular financial services, which will take a battering and as it accounts for 80% of GDP the damage will be greater. It also has a positive balance of payments.

I agree the manufacturing industry is a relatively small percentage of our GDP, but we have already seen the scaling down of car manufacturing, partly due to the EU's trade deal with Japan, cutting of diesel production and the global slowing of the car industry. If we lose access to our biggest market, I can see many more firms pulling their manufacturing plants from the UK.

If we plunge into a no deal scenario and if this leads to FTA's with countries such as China and the USA, I can't see these countries looking to import more than they export to us.
 
I agree the manufacturing industry is a relatively small percentage of our GDP, but we have already seen the scaling down of car manufacturing, partly due to the EU's trade deal with Japan, cutting of diesel production and the global slowing of the car industry. If we lose access to our biggest market, I can see many more firms pulling their manufacturing plants from the UK.

If we plunge into a no deal scenario and if this leads to FTA's with countries such as China and the USA, I can't see these countries looking to import more than they export to us.

Oh, I agree that a no-deal Brexit will be very bad for the manufacturing sector and that not only will jobs be shed due to a drop in trade with the EU but I think non-EU exports will drop too.
 
Regarding timing, I'm thinking 2022 or afterwards for the panic deal with the US.

As you point out, 2019 is pretty much used up.

IMO 2020 will be spent putting out major economic fires, there'll be no capacity for trade negotiations.

True, but it's not just UK, it's USA too. The year 2020 will be hot, there will be Democrat primaries and time and energy of the administration and other high-ranking officials will be consumed to attacking candidates they percieve as a threat. There may well be a contested Republican primary, using up more time and energy attacking that. There will be an election in November, much is riding on that - probably no less than freedom of POTUS, perhaps even the country. House of Representatives will be in no mood to support the president in his endavours either.

Striking a major trade deal in record time under those circumstances would require quantum tunneling.

2021/2022 will be spent trying to strike some kind of deal with the EU - the biggest problem being that the UK doesn't know what it wants but then again it lacks the skilled negotiators to go about getting it. There may be talks in parallel with the US but the firesale won't come about until it becomes clear that the EU are not going to roll over.

There are new elections to be held in UK no later than May of 2022. If Tories manage to get their government through this year, quit the EU without a deal in October and spend most of 2020 putting out fires, they only have about a year to get a deal through. The said deal is a prerequesite for any form of major trade deals around the world, short of unequal treaties with countries liek China. No other country will want to make a trade deal with UK if it risks the ire of the EU, because UK just ripped apart a peace treaty with a EU member state. All of this means there isn't time in "2021/22" to make some kind of a deal with the EU, the said deal must be agreed upon by the end of 2021 and ratified by March 2022 at latest.

If not the Tories risk that greatest of all evils: a Labour government.

If a no deal Brexit crisis occurs, UK has to deal with EU first, while in a crisis and has no cards left to play.

You're right that a deal with the US will do little or nothing to improve the UK's position. The EU will continue to be the UK's largest trading partner, regardless of the terms, just because of physical proximity. Of course the Breixiteers don't care about any of this because the post-Brexit economic crisis will be a feature, not a bug and/or they really are deluded enough to think that the UK will not only emerge unscathed from a no-deal Brexit, it will actually be in better economic shape. :(

I'm starting to think Brexiteers view no deal Brexit crisis as a feature, not a bug of Brexit. You see, the main problem will be British imports, because UK is woefully unprepared and will go from next to no checks to major checks. This will stifle imports, but EU is better prepared and will be able to facilitate imports from Britain better.

What you get is stifled consumption in UK, an increase of spending on British products (because others aren't as readily available), while your exports don't suffer nearly as much. It's still dumb to think this would last more than a few weeks, EU has all sorts of tools to remedy the situation. But Brexiteers have been assuming EU will do what they wish it did this entire time, it's not a stretch to think their opinion is unchanged and simply went from "they'll beg us for a deal" to "they'll be like a deer in the headlights". There is logic behind the reasoning, if the premise of ineffective EU was correct there would be grounds to believe that could be true to a sufficient extent to make no deal Brexit an interesting exercise in mercantilism.

The only premise I make is that Brexiteers still believe their own anti-EU propaganda. That's hardly a stretch. Thoughts?

McHrozni
 
I'm not sure that giving the EU the excuse to say that the UK is walking away from its current financial obligations is the best way to start negotiating a new trade deal with them.

Also, I think that £40bn will be a drop in the bucket compared to the full cost of mitigating the effects of a no-deal Brexit for the government, let alone for the economy as a whole. :(
Agree with both of those but I can almost see the side of the bus being painted now.
 
Yep.
"£40 billion for the NHS!"

Except, of course, if we crashed out at the end of October then that 40 billion will have all been used up before Christmas fighting the aforementioned fires. People really don't realise how little 40 billion actually is.
 
Before the 2019 elections:

Pro-Brexit:
Party | Seats
UKIP|24
Labour|20
Conservative|19
DUP|1
Total|64


Really? You're claiming that ALL Labour and Conservative MEPs elected in 2014 were Pro-Brexit? If that's the case why did both those parties campaign in favour of Remain two years later in the 2016 referendum?


If you were honest, you'd move most of those 39 seats over to your Pro-Remain table - but that would destroy your argument, so I don't expect you'll do that.
 
Really? You're claiming that ALL Labour and Conservative MEPs elected in 2014 were Pro-Brexit? If that's the case why did both those parties campaign in favour of Remain two years later in the 2016 referendum?


If you were honest, you'd move most of those 39 seats over to your Pro-Remain table - but that would destroy your argument, so I don't expect you'll do that.
Given we are told that anyone voting Lab or Tory at the last G.E. was voting for a pro brexit party and was supporting brexit it is far less of a leap to suggest that MEPs of those parties followed their party line.

Out of interest did to get your acknowledgement and apology or was promising not to post again another brexiteer lie?
 
Would No-Deal make an Irish reunification more or less likely? I mean, if No-Deal goes bad enough and Northern Ireland decides to leave the UK, then decides to rejoin the rest of Ireland. Or is that way to complicated and silly? Really don't know enough on this topic...

They are tearing up the GFA in that case so what would northern Ireland use to call for a vote for reunification? If parliament can ignore one part of it they can ignore others.
 
I understand that "no-dealers" in the UK would call the EU's bluff on the Irish border issue, as in "We ain't gonna put one up, do what you like".

That bit of leverage is the thing most likely to cause the EU to grant additional concessions to avoid no deal (perhaps the threat of repudiating the financial settlement is likely to as well). Not that either of them will.
 
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I understand that "no-dealers" in the UK would call the EU's bluff on the Irish border issue, as in "We ain't gonna put one up, do what you like".

Yep so free open borders to trade with the EU, you just need to tranship everything through the Republic of Ireland.

Seriously does anyone who wants to take back the borders actually understand the first thing about them? And are they getting enough ferries from somewhere to instead of going just across the channel go to ireland first then into the UK?
 
Before the 2019 elections:

Pro-Brexit:
Party | Seats
UKIP|24
Labour|20
Conservative|19
DUP|1
Total|64

Pro-Remain:

Party | Seats
Green|3
SNP|2
LibDem|1
Plaid Cymru|1
Sinn Fein|1
UUP|1
Total|9


After...


Pro-Brexit:
Party | Seats
Brexit|29
Labour|10
Conservative|4
DUP|1
Total|44 (-20)

Pro-Remain:

Party | Seats
Green|7
SNP|3
LibDem|16
Plaid Cymru|1
Sinn Fein|1
Alliance Party|1
Total|29 (+20)


Depends on how you view the Labour Party...
Tricky. While I can understand allocating all the Conservative seats as pro-Brexit, I'd suggest that Labour's ten should be split, perhaps 7:3.
 
Really? You're claiming that ALL Labour and Conservative MEPs elected in 2014 were Pro-Brexit? If that's the case why did both those parties campaign in favour of Remain two years later in the 2016 referendum?


If you were honest, you'd move most of those 39 seats over to your Pro-Remain table - but that would destroy your argument, so I don't expect you'll do that.
You are accusing someone of dishony?
:rolleyes:
 
Given we are told that anyone voting Lab or Tory at the last G.E. was voting for a pro brexit party and was supporting brexit it is far less of a leap to suggest that MEPs of those parties followed their party line.

Out of interest did to get your acknowledgement and apology or was promising not to post again another brexiteer lie?

No, it's a wrong assumption that people were voting for or against Brexit in the General Election. It's very much party politics.
 
Meanwhile, the UK economy has taken a major hit and the £40bn "Brexit bonus" is long spent. The UK is desperate for a trade deal and goes cap in hand to the US. A trade deal is relatively quickly agreed and is hailed a triumph and a boon for the UK economy. It quickly becomes clear that this is not the case, and although it makes it much easier for US companies to export to the UK, and for US companies to sell into the NHS, exporting to the US if anything becomes more difficult.

Not bloody likely (as you would say :)). Trade deals in the USA have a political visibility they've never enjoyed before due to Dump's ineptitude on trade deals around the world. Even if he is no longer president, such deals will take a couple of years. As an example, the "new" NAFTA, which is just a minor tweak to the existing Agreement, has stalled in its movement to passage and it was proposed a year ago. A whole new agreement with the UK is no small kettle of fish any more.
 
Not bloody likely (as you would say :)). Trade deals in the USA have a political visibility they've never enjoyed before due to Dump's ineptitude on trade deals around the world. Even if he is no longer president, such deals will take a couple of years. As an example, the "new" NAFTA, which is just a minor tweak to the existing Agreement, has stalled in its movement to passage and it was proposed a year ago. A whole new agreement with the UK is no small kettle of fish any more.

It is when the UK negotiating position consists of us saying, "please be gentle with us"
 
Business Insider has their own analysis, in line with pretty much everything said here.

https://www.businessinsider.com/eur...n-2019-5?utm_source=quora&utm_medium=referral

If the totals were presented as a binary choice in a second referendum, the result would have been:
Remain: 55.3%
Leave: 44.7%
That's a 10-point majority favoring Remain. In total, the Remain bloc won 9.3 million votes while the Leave contingent brought in 7 million.


Not much to add but "someone shoot Corbyn already".

McHrozni
 
It is when the UK negotiating position consists of us saying, "please be gentle with us"

And that is a major problem. When the priority is to get a deal done rather than to pay attention to the details you know things aren't going to be thought through properly and you know that you are going to regret it later.
 
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