Thread by @RabbiZvi

#Brexit #EndIfWithdrawal

Imagine 2 de merged companies desperate to trade w each other, but unable to come to an agreement let alone a contract.

What do they do?

Stopping trading not an option - they are heavily interlinked. Rely on each other. They just can’t sign yet 1/6

So they carry on trading and negotiating.

Both sides know and trust each other broadly. They are very close, have worked together for decades.

They just can’t agree on formalities. The practicalities are not a problem.

We are here at present.
#Brexit #EndOfWithdrawal
2/6

So what normally happens is agreements made piecemeal, and the companies send each other draft ideal contracts to bolster their legal standing should something go wrong.

It’s messy, informal, it is more risky, but it works.
(@shirabatya’s analogy)
#Brexit #EndOfWithdrawal 3/6

We have some matters we cannot agree on. Europe will also not budge on others.

This is not the end if trade, merely a period of small deals instead of the Grand Unification Deal.

The EU cannot impose its ideology on a sovereign state.

This will work in most situations.

4/6

The only flaw is, what happens when we have disputes? How will they be resolved?
This is the real benefit of proper agreements.
It need not be a problem. We might find other ways to resolve them.

After all, most countries aren’t in EU like blocs.
#Brexit #WndOfWithdrawal 5/6

@threadreaderapp unroll

The British (and Jewish) Harvard Economics Professor, Nobel laureate Oliver Hart, was @shirabatya’s supervisor, dealt largely w this issue.

#NoDeal may be to our advantage…

threadreaderapp.com/thread/1341388…