Category Archives: Brexit

ROME, Oct 31 (Reuters) - Britain and France clashed again in a post-Brexit fishing row on Sunday, with London denying it had shifted its position and Paris insisting it was now up to Britain to resolve a dispute that could ultimately hurt trade.

The two sides painted different pictures of a meeting between Prime Minister Boris Johnson and President Emmanuel Macron on the sidelines of a Group of 20 summit in Rome.

Johnson said Britain's position was unchanged but added he had been "puzzled" to read a letter from Paris to the European Union asking "for Britain to be punished for leaving the EU". read more

"I don't believe that is compatible either with the spirit or the letter of the Withdrawal Agreement of the Trade and Cooperation Agreement and that's probably all I'll say about that," he said, referring to the Brexit divorce and trade deals.

Macron, also speaking at a post-summit news conference, said he wanted a deal. "I don't want escalation. We need to be serious," he said in Rome. "I don't want to have to use retaliation measures, because that wouldn't help our fishermen."

Macron said Paris had given proposals to London and "now the ball is in Britain's court."

London has called on Paris to move first.

The dispute was triggered when France accused Britain of issuing only half the fishing licences it believes it is entitled to.

London says it distributes licences to fish in its waters under the rules provided in the Brexit deal. The row intensified when the French detained a British scallop dredger this week.

Relations between Britain and France have become increasingly strained since Britain voted to leave the EU in 2016. London's recently struck security pact with the United States and Australia did little to build trust with Paris.

The fishing issue dogged Brexit talks for years, not because of its economic importance but because of its political significance. If not resolved, it could trigger the beginning of dispute measures in the Brexit trade deal as soon as this week.

After Johnson and Macron met on Sunday, a French official said the leaders had agreed to try to de-escalate the row, which risks distracting from Britain's hosting of the United Nations COP26 climate talks that start this week in Glasgow.

But Johnson's spokesman rejected the description of the meeting.

Paris has said it could impose targeted measures from Tuesday, including heightening some checks, if there is no resolution to the dispute.

A French official said earlier on Sunday that the two sides would try to work out ways to de-escalate the situation. "We'll see on Nov. 2. We're not there yet," the official said.

Reporting by Elizabeth Piper and Michel RoseEditing by Crispian Balmer, William Schomberg and Frances Kerry

Our Standards: The Thomson Reuters Trust Principles.

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Deadlock over fish as UK and France spar over Brexit deal - Reuters

Almost twice as many voters now believe Brexit is having a negative effect on the UK economy as think it is benefiting the nations finances, according to the latest Opinium poll for the Observer, carried out during budget week.

The survey comes after Richard Hughes, the chairman of the Office for Budget Responsibility, said his organisation calculated that the negative impact on GDP caused by the UKs exit from the EU was expected to be twice as great as that resulting from the pandemic.

Hughes said Brexit would reduce the UKs potential GDP by about 4% in the long term, while the pandemic would cut it by a further 2%. In the long term, it is the case that Brexit has a bigger impact than the pandemic, he said.

Opiniums findings appear to be in line with other recent polling, including a survey last week by Ipsos MORI, which showed concern about the effects of Brexit rising to the point that it is now seen as the biggest issue for the country alongside Covid-19.

The Opinium survey found that 44% of people think Brexit is having a bad impact on the UK economy, compared with 25% who think it is having a positive effect.

More starkly, 53% of people believe Brexit is having a bad effect on prices in shops, against 13% who think it is having a good effect, while 51% think it is adversely affecting the UKs ability to import goods from the EU, against 15% who think it is helping.

While chancellor Rishi Sunaks approval rating rose slightly after his Budget speech on Wednesday, in which he increased government spending to its highest sustained level since the 1970s while warning that inflation would rise to 4% next year, the fact that people appear to be linking Brexit with economic problems including rising prices will be a worry to No 10 and No 11 Downing Street.

During the campaign for Brexit, led by Boris Johnson and Michael Gove, voters were told by the Leave campaign that leaving the EU would create a more dynamic UK economy able to trade freely across the globe, and less bureaucracy, leading to lower prices.

The OBR report, published alongside Sunaks budget, said that its evidence to date suggested its previous forecasts that Brexit would lead to a 15% fall in both UK imports from, and exports to, the EU appeared to have been broadly accurate.

The report said: The evidence so far suggests that both import and export intensity have been reduced by Brexit, with developments still consistent with our initial assumption of a 15% reduction in each.

It is also made clear that shortages of lorry drivers were at least partly caused by Brexit.

Last week the Financial Times reported that whereas by August this year global goods trade had rebounded sharply since the height of the pandemic (according to the CPB World Trade Monitor), the UK was proving a notable exception, with its exports still sharply down.

Since the end of the Brexit transition period on 1 January this year, UK ministers have insisted that difficulties with trade to and from the EU would be short-lived and amounted merely to teething problems that would be resolved quickly once companies got used to the new arrangements.

While Opinium found evidence of clear anxiety about Brexit, this has yet to translate into a negative effect on support for the Tory party.

The Conservatives are on 40%, down 1 point compared with a fortnight ago, while Labour is down 2 points on 35%. The Lib Dems are on 8%, the Green party 7%, the SNP 5% and Plaid Cymru 1%.

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Brexit is harming the UK economy, say 44% of voters - The Guardian

French President Emmanuel Macron delivers his speech at the Quai Branly museum in Paris, France, October 27, 2021. Michel Euler/Pool via REUTERS

LONDON, Oct 29 (Reuters) - French President Emmanuel Macron warned Prime Minister Boris Johnson on Friday that Britain's credibility was on the line in the row over post-Brexit fishing rights and Northern Ireland, with other countries watching closely.

Macron told the Financial Times in an interview that the fishing rights issue was important.

"Make no mistake, it is not just for the Europeans but all of their partners," he said. "Because when you spend years negotiating a treaty and then a few months later you do the opposite of what was decided on the aspects that suit you the least, it is not a big sign of your credibility."

Reporting by Kate Holton and Jahnavi Nidumolu; Editing by Leslie Adler

Our Standards: The Thomson Reuters Trust Principles.

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UK's credibility on the line with Brexit row, Macron tells FT - Reuters

Britain has begun preparations for a major clash with the EU by activating a key government committee to look at the fallout from suspending cooperation over Northern Ireland, Sky News has learnt.

Ministers are holding discussions inside the key cabinet committee, which oversaw Brexit fallout preparations, about the repercussions of triggering Article 16, which allows the UK to stop following some parts of the Northern Ireland Protocol.

The discussions on the practical implications of triggering the emergency mechanism in the Northern Ireland Protocol are being held in the "XO" cabinet committee, a pivotal institution inside government last year during Brexit talks when facing the threat of "no deal".

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This committee has now been named as GB(O) committee or Global Britain (O) inside Whitehall.

Amid deteriorating relations with France and other EU capitals, Sky News understands the issue of "Article 16 readiness" is back on the agenda for a meeting shortly.

Government sources stress that the GB(O) Committee has already discussed the issue, and that the fact the issue is again on the agenda cannot be taken as a sign that Britain intends to trigger Article 16.

Negotiations with the EU over Northern Ireland are ongoing, and sources say that a negotiated outcome "is our focus and highly preferable", not least because there is more flexibility in negotiations now than through the Article 16 process.

Article 16 is an emergency break clause in the Northern Ireland Protocol that allows either the UK or EU to stop following some of the rules under certain circumstances.

Separately, cabinet ministers have been suggesting it could come as soon as mid to late November, after the COP26 climate change summit where the UK must work alongside the EU and the US, which is worried about such a move.

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Downing Street believes that negotiations cannot drag on forever, pointing to an end of November deadline for the current round of talks.

This comes as Sky News has learnt:

Relations are worsening over Britain's Brexit deal, which keeps Northern Ireland tied to EU rules on goods and part of the single market, overseen by the European Court of Justice.

Britain says the EU has been implementing rules too stringently and wants the ECJ removed from oversight of the protocol, threatening to trigger Article 16 if they fail.

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The news that a critical committee is now discussing the fallout from triggering Article 16 will be seen as evidence that the chances of Britain triggering the move are growing.

Lord Frost has been meeting Tory MPs in order to minimise dissent in the event Boris Johnson decides to trigger Article 16.

One MP said: "The message was: trust us. He was saying please keep your head down on the issue and don't interfere, arguing they did Brexit so they know what they're doing.

"He pointed out that the Irish are in a difficult position, as are the French and the Germans don't have a government."

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The Tory MP added that while they did not say triggering Article 16 was a certainty, he was making clear that MPs should be "prepared for all eventualities".

The MP said they believed they wanted to get "beyond the bumps in the road" over issues such as fuel before triggering Article 16.

Tory MPs told Sky News they believed Lord Frost has largely squared off opposition from Remain-voting Tory MPs, some of whom were suspended before the last election for voting against Mr Johnson's Brexit tactics.

"It will rally the troops", one Tory MP who supported Remain said.

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Brexit: UK gearing up for major clash with EU as it convenes committee to look at fallout from triggering Article 16 and suspending Northern Ireland...

Brexit has overtaken Covid as the number one concern of the British people for the first time since the pandemic began, new polling has found.

The supply chain crisis which has seen labour shortages and empty supermarket shelves has pushed the impact of the UK-EU divorce back to the forefront of the public imagination.

Some 28 per cent of people said Brexit is the biggest issue facing the nation a rise of eight per cent since last month, according to the latest Ipsos MORI survey.

There has been a significant dip in the proportion who see Covid as a major issue for the country only 27 per cent now considerate it the most important concern, down ten points from September.

It comes as chancellor Rishi Sunak laughed off warnings from his own budget watchdog that Brexitwas causing serious damage to the British economy.

The chairman of the UKs fiscal watchdog said on Thursday that the impact ofBrexiton the UK economy will be worse than that caused by the pandemic.

Richard Hughes said the Office for Budget Responsibility (OBR) had assumed the impact of the UK leaving the EU would reduce our long run GDP by around 4 per cent.

He also told BBC: We think that the effect of the pandemic will reduce that (GDP) output by a further 2 per cent.

But Mr Sunak dismissed warnings from his own budget watchdog. The chancellor claimed Britains departure from the EU was five years ago and said the government was capitalising on benefits of the UK departure.

What Im doing is making sure that we capitalise on the opportunities that Brexit has brought, Mr Sunak claimed. Were seeing the benefits that [it] will bring to the economy, and our ability to sign trade deals around the country.

Asked about the official assessment on Brexit impacts, No 10 insisted that exiting the EU had given the government greater powers to boost the British economy.

Asked on Thursday whether a 4 per cent long-term cut to GDP was a price worth paying forBrexit, Boris Johnsons spokesman said the Budget had shown the agility, flexibility and freedom the UK now had after the EU divorce.

Brexit rows with EU leaders have also intensified again in recent days. Mr Johnsons government is asking for further talks with French and EU officials over the reasons for UK trawler has been detained by France.

Ministers have condemned Frances seizure of a British fishing boat in French waters as disproportionate in a dispute over post-Brexitfishing rights that risks spinning out of control.

And the leader of the DUP leader said talks between the UK and EU on the contentious Irish Sea trade border need to reach resolution very, very soon.

Sir Jeffrey has warned that he will pull down power-sharing arrangements at Stormont if significant changes to the Northern Ireland protocol are not secured by early November.

Brexit is seen to be a far bigger concern by Labour supporters over Conservatives (35 per cent to 17 per cent), the Ipsos MORI poll found.

Meanwhile, worries about the economy and pollution also feature close to the top of public concerns (26 per cent and 24 per cent respectively).

Worry about the NHS has fallen seven points since last month, but on 23 per cent it remains one of the major issues for voters.

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Brexit overtakes Covid as the British publics biggest concern - The Independent

The full impact of Brexit on the global travel industry has not yet been felt, reveals research released today by WTM London.

Some 700 senior professionals from around globe contributed to the WTM Industry Report, and were asked whether their business had felt any specific Brexit-related pressures, so far.

Almost half (45 per cent) said they hadnt noticed any difference in 2021 because of Brexit.

Of those who acknowledged a Brexit effect, the response was overwhelmingly net negative.

Only eight per cent noted a positive impact compared with 24 per cent highlighting a negative.

The balance, representing one-in-four (23 per cent) of the industry, were unsure or did not know the extent to which Brexit was a factor in their 2021 performance.

The UK officially left the European Union, with a trade deal, at the end of 2020.

The UK/EU trade deal has already resulted in some regulatory changes that will impact inbound and outbound travel between the UK and the remaining member states.

Many of the UKs biggest mobile phone operators have announced the end of surcharge-free roaming for travellers, as was required by law when the UK was part of the EU.

This change will add to the cost of a trip for many and damage the in-destination experience for some.

Potential issues around passport expiry dates, driving licences, insurance, staffing levels at resorts, immigration lines at airports, and more, are likely to persist into next year, alongside the issues related to Covid-19.

There will also be a combined Brexit/Covid impact on businesses as well as consumers. Recruiting staff will be different, while the complexities remain around cross-border tax, refunds, fulfilment and accounting.

Simon Press, exhibition director, WTM London, said: To some extent, the industry so far has dodged the Brexit bullet because the Covid crisis overshadowed and dominated what would have been the first peak holiday season of the Brexit era.

But as Covid restrictions start to ease, Brexit-related concerns around visas, financial protections, security, duty-free allowances, health cover and so on will come to the fore once more.

These changes will need to be considered and applied in the context of the post-Covid travel landscape.

The industry needs to get ready for Brexit again, in terms of not only our own business operations but also how we let customers know about the new requirements.

WTM London helped businesses prepare the first time around and will continue to offer insights and education as Brexit reasserts itself into the travel conversation.

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WTM London 2021: Full impact of Brexit still to come - Breaking Travel News

The French President met with Scott Morrison in Rome for the G20 meeting for the first time since Australia scrapped the multi-billion dollar deal with France as part of a new security alliance with Britain and the United States unveiled in September.

The alliance, dubbed AUKUS, which could give Australia access to nuclear-powered submarines, caught Paris off guard, prompting it to recall ambassadors from Washington and Canberra amid accusations that France had been betrayed.

"I don't think, I know," Macron said in response to a question whether he thought that Morrison had lied to him "I have a lot of respect for your country," he said in comments on Sunday to a group of Australian reporters who had travelled to Italy for the summit of leaders of the top 20 economies.

"I have a lot of respect and a lot of friendship for your people. I just say when we have respect, you have to be true and you have to behave in line, and consistently, with this value."

Morrison told a media conference later the same day that he had not lied, and had previously explained to Macron that conventional submarines would no longer meet Australia's needs.

The process of repairing ties had begun, he added.

Mr Morrison and President Macron spoke last week before the Australian prime minister publicly sought a handshake with his French counterpart at the G20 meeting.

On Monday, Australian Deputy Prime Minister Barnaby Joyce urged France to view the matter in perspective.

"We didn't steal an island, we didn't deface the Eiffel Tower. It was a contract," Mr Joyce told reporters in Moree.

"Contracts have terms and conditions, and one of those terms and conditions and propositions is that you might get out of the contract."

READ MORE:Liz Truss reveals Macron's motives on fishing war

"I think what happened was, to use an English phrase, what we did was clumsy. It was not done with a lot of grace," President Biden said.

"I was under the impression certain things had happened that hadn't happened. And - but I want to make it clear: France is an extremely, extremely valued partner - extremely - and a power in and of itself."

The US leader also noted the United States does not have an older and more loyal ally than France and said there is no place where the two nations cannot cooperate.

"I was under the impression that France had been informed long before that the deal was not going through. I, honest to God, did not know you had not been," Mr Biden told Mr Macron.

President Macron said his meeting with the US President was "important" and that it was essential to "look to the future" as his country and the United States work to mend fences.

The two leaders showed warm body language, with clasped hands and arms on each others' backs when they greeted one another.

They shook hands a few times while journalists watched the beginning of their meeting.

"What really matters now is what we will do together in the coming weeks, the coming months, the coming years," Mr Macron said.

The French leader told reporters afterward that the meeting with Biden had been helpful, with a "strong" US commitment about European defence, but what happened next was important.

"Trust is like love: Declarations are good, but proof is better," he said.

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I don't think, I know Bitter Macron accuses Australia PM of 'lying' after Brexit triumph - Daily Express

GBP/USD is under pressure below 1.3700, trying to find its feet after Fridays severe blow. The bears retain control amid a broadly stronger US dollar and looming Brexit risks.

The US dollar index continues to hold the higher ground near two-week tops amid rising expectations of a sooner-than-expected Fed rate hike, as Fridays PCE Price Index accelerated to 4.4% YoY in September vs. 4.2% previous.

The same is being reflected in the Treasury yields, with the benchmark 10-year rates up 1.50% so far. This week, markets have fully priced in that the Fed will announce a tapering of its bond-buying.

Meanwhile, growing Brexit concerns will continue to undermine the British currency amid an escalating row over fishing rights between the UK and France. Over the weekend, French PresidentEmmanuel Macron said the row was a test of the UKs credibility, in a Financial Times (FT) interview.

Separately, the head of the French ports of Calais and Boulogne, Jean-Marc Puissesseau warned, It will be a drama, it will be a disaster.

Maro efovi, Vice-President of the European Commission in charge of Interinstitutional Relations and Foresight, said, he is concerned the (UK) Government will refuse to engage with (Northern Ireland) proposals put forward by Brussels.

Gear up for a big week, the pair will likely remain confined within a narrow, with all eyes on the Fed and BOE policy decision while Fridays NFP release will also hog the limelight. In the meantime, traders will take cues from the UK Final Manufacturing PMI and the US ISM Manufacturing index.

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GBP/USD: In bearish consolidation below 1.3700 amid escalating Brexit concerns - FXStreet

A THIRD of Scotlands largest brassica crop has been left to rot in the field because Brexit ended access for seasonal pickers.

Costs will rise next year and production will shrink as a result, farmers predict. Meanwhile, empty shelves are causing problems for rural Scots. And Scotlands iconic food producers are facing catastrophic failure to protect their status in UK Government trade deals.

Andrew Faichney, managing director of the East of Scotland Growers (ESG) co-operative, which represents 16 farmers in the Fife area have left about one-third of Scotlands largest crop of brassicas worth more than 1 million to rot in the field, as Brexit meant a shortage of labour to pick them.

Now farmers are counting the cost. Farmers are used to dealing with natural events, Faichney said. Thats the way we are programmed. We pick ourselves up and start again. But this is different we have been let down by policy-makers.

We are feeling bruised. It has been emotionally draining as well as financially. We put in months of work to grow these crops it was a good year and they looked fantastic. Then farmers had to say to the team we will have to leave those fields. It has been hard for everyone.

READ MORE:Brexit Britain being steered towards a 'bleak' Christmas, SNP warn

Some farms put up signs saying help yourself and some local people came and took a few.

Others put sheep in the field to eat the crops but it was a really expensive feed crop.

Some seasonal visas were granted for EU pickers but far fewer than were required. Faichney said farmers are now counting the cost of 2021 and negotiating prices for the 2022 harvest with supermarkets. They will have to be higher.

Farmers are already planning to plant less. If only a few visas are granted next year, there may be a bidding war for labour . The UK Government is in complete denial about the situation, according to NFU Scotland Vice President Andrew Connon.

Farmers also have to factor in other rising costs and logistics issues exacerbated by Britain leaving the single market. This summer, Morrisons supermarket closed one of Scotlands largest potato procurement and packing sites in Carnoustie in Angus, which it acquired in 2017, for efficiency reasons. That means a large part of the areas tattie crop is heading from the field directly to England. Those which return to Scottish shops for sale will have to do double miles.

A Morrisons spokeswoman said: The closure does not mean that Morrisons will be buying any fewer Scottish potatoes. They did not comment about the environmental impact or whether local tatties will still be available to buy in Scotland.

Another issue is the apparent lack of protection for Scotlands iconic brands in the UK governments negotiated trade deals. The document produced by the UK Government on the trade deal with Australia says PGI (protected geographic indicators) for named brands will be protected only if Australia introduces a similar scheme.

RUTH Watson of Keep Scotland the Brand said: It would appear that Scotlands iconic brands which have Protected Geographic Indicators will no longer get the same level of protections that they had as part of the EU. The US has made it very clear that they dont want places of origin and the UK may be paving the way for that. This is devastating news for Scotlands food brand and international reputation. The Scottish economy is significantly dependent on food and drink exports and Brexit is a catastrophe.

Meanwhile, across rural Scotland, people took to social media to complain about empty shelves and high fuel costs which make it increasingly expensive to drive to another shop if there are empty shelves.

Sam Jones from Mull tweeted an appeal to the Co-op We cant just pop to Tesco instead. Our alternatives are a Premier & Spar round trips of 14 and 24 miles. Dont send more mince pies and other seasonal crap, send fresh food. People from Bute, and Islay and other rural areas echoed his concern.

Ruth Watson of Keep Scotland the Brand

Some Twitter protestors contacted by the National didnt want to be named. One from Islay said: On Monday, it certainly looked and felt as I imagine East Germany did before reunification.

There were virtually no vegetables, fresh chicken or meat and other aisles too were sparsely populated. It was very depressing.

READ MORE:Supermarket sign was a useful reminder that Brexit was foisted upon us

ANOTHER from Kirriemuir said: If you dont have a car or cant afford to go to the next town you have to put up with what is available at the Co-op. There are lots of gaps in the fresh produce and what there is is spread thinly. In dry goods, the value brands sell out first and all that is left are the more expensive ones.

CEO of Dundee and Angus foodbanks Derek Marshall said: Existing challenges for rural people are exacerbated by increasing prices and shortages. For example, elderly people on fixed incomes who dont drive, cant shop around.

A Scottish Government spokesman said: We are doing all we can to support people through what is likely to be a difficult winter, including through our new 41 million Winter Support Fund for low-income households, announced Friday. We are actively supporting rural and island economies.

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Brexit leads to 'Catastrophic failure' warning for Scotland as crops left to rot - The National

GB News host Nigel Farage argued that post-Brexit fishing relations with France were strained. He noted that Brexit was meant to grant the UK greater control but in practice, it has not done this. He insisted Boris Johnson must stand up to the threats from France to protect UK fishing waters.

Mr Farage said: "A British boat was impounded the other day, as you know.

"Here is the thing, we actually thought with Brexit we would get back control of our territorial waters.

"In theory we have but in practice, we haven't.

"The sheer number of foreign boats that are fishing between our 6 and 12-mile limit is unbelievable.

DON'T MISS:Boris throws down gauntlet to EU and France as UK loses patience

"About 97 percent of applications from EU countries were granted.

"The only few dozen that weren't granted were boats that could show no historical record of fishing up close to Jersey or indeed other parts of the English Channel."

Mr Farage questioned why the UK was still permitting the EU to have so much access to UK waters.

He said: "Maybe there should be a bigger debate.

"I don't know but I think this is an essential matter of sovereignty.

"Jersey, we have got to stand up and protect Jersey and if there is a big blockade on Tuesday, which is being threatened, let alone a cut in power, this is a big moment for the Prime Minister to be strong.

"Do you know how many British boats fish between the 6 and 12 miles of France? One."e

Boris Johnson and Emmanuel Macron have spoken at the G20 meeting with citizens from both countries keen for the issue to be resolved.

Both leaders have agreed to de-escalation regarding the ongoing row with fishing rights.

It is not clear what concessions will be made and by which side however asa French official said Macron told Britain it should obey the rules which Paris accuses London of flouting by failing to give France enough fishing licences to operate in British waters.

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Farage orders Boris stands up to France in fishing row 'We thought we'd get back control!' - Daily Express