So, deal or no-deal? I'm afraid it looks gloomy. Too many outstanding issues, a political context that is not conducive to compromise, and a tunnel leaking like mad. Quite possibly forming between them a vicious cycle. So, is this it? I suspect not... 1/n
Recall, this UK-EU negotiation is attempting to put in place an agreement unusually extensive (haulage, aviation, security, as well as trade) in a record timescale (9 months start to implementation) at a time of pandemic. That was always optimistic. 2/
A process driven EU against a naive yet overconfident UK in a short timeframe was also never going to be easy. In particular the UK's sole evident negotiating strategy, to say we'll walk away, is still in overdrive, making compromise harder. 3/
On the up side the UK has been inching slowly away from the purist notions of sovereignty which would prevent any deal towards a more realistic haggle over details, but possibly too late to resolve them, barring unexpected deep late concessions from either side. 4/
Geography isn't changing, and trading more with neighbours isn't either. Virtually all countries in the world have deals with their neighbours. It is unrealistic for the UK to be the sole developed country exception. Even if it takes a while. 5/
Right now the politics is 'blame the French' on one side and 'don't trust the Brits' on the other. As I said, not conducive to deep compromises. The only real chance is to agree you don't trust each other, but would trust each other less without a deal. Which isn't great. 6/
But apart from petulance, why walk away? The EU don't, ever. However improbable a deal appears (hello India!). Why should the UK do so? As we've just seen, we need to talk with neighbours. And you can be not scared of no-deal and still prefer a deal. 7/
Time, as Brexit threadmeister @pmdfoster often says, for cool heads. A lot has been agreed. But negotiating teams are now tired and probably pretty grouchy. Member states, MEPs, MPs, all concerned about what might be agreed. No time to implement properly anyway. 8/
Yes, deal if we can today. But if we can't, far better for the two sides to take a pause, get ready for January 1, and come back with some renewed energy (and knowledge of why we need a deal). Yes it will be messy. But it will be anyway. Trying to be civil will really help. 9/
Throughout these talks we hoped for some kind of outside intervention to overcome fundamental differences. It hasn't happened and is probably still needed (hello Biden?). But the two sides have come through a lot. If they can't complete, at least don't throw it away. 10/10

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More from @DavidHenigUK

24 Dec
For the last time today, a link to my analysis of the deal - a significant moment for the UK politically as we move on from 5 years of Brexit division. Just a few thoughts about content before Christmas... linkedin.com/pulse/signific…
Most significantly, the 1 January change in trading relations is still abrupt, still the biggest such one day change in modern history. The deal will ease some elements, but not fundamentally change it. It will be interesting to see how views of the deal evolve from this point.
Who won / lost - significant compromises all round. The UK has to accept the strongest level playing field terms ever included in a trade agreement, the EU an annual fishing quota exercise after a 6 year transition. Both seem to have dropped some asks.
Read 7 tweets
24 Dec
Tempting fate and all that, but something to read while waiting for the official UK-EU deal announcement, my long thoughts on what it all means.

In short. It matters. Probably more politically than economically. Not atypical for a trade agreement.
linkedin.com/pulse/signific…
Some clips - first, why a deal now? I'm suggesting the muted reaction to the implementation of the Northern Ireland protocol is vital. Supposed breach of UK red lines, waved through with no fuss at all. As well as an underlying boredom. Image
Who won? EU 2 UK 1. This is being easily forgotten in the race to proclaim UK triumph, but we were supposed to get the benefits of the single market without the costs. More recently to overturn the Withdrawal Agreement. Didn't happen. Image
Read 5 tweets
23 Dec
Pro-tip. The operational smallprint is just as important as the overall deal words for determining a trade relationship. Now how many people who aren't @AnnaJerzewska or @hayward_katy have read the detail on how the Northern Ireland protocol is to be implemented? Thought not...
Also, trade agreements are legal frameworks open to interpretation. Any joint interpretation of what a UK-EU text means will be a place to start, before diving into text. Therefore be wary particularly of 'star chambers' of those who might not be experienced with trade deals.
Read 4 tweets
23 Dec
Follow the Northern Ireland protocol precedent (and many others from EU previously). The EU protecting principles as they saw them (e.g. maybe on fish continued access and rights to impose tariffs if didn't like future split) but there will be plenty of content good for the UK.
So neither side is going to be able to claim absolute victory as is always the way with trade deals. Measured against the unrealistic (EU fish catch unchanged, UK no strict level playing field conditions) both will have lost. But that's not a reasonable measure. Score draw.
As for why a deal now (assuming there is...) my gut feel is the lack of vocal opposition among ERG MPs to the detail of the Northern Ireland protocol implementation (not at all as PM promised) encouraged the view that boredom and distraction would beat internal opposition.
Read 4 tweets
23 Dec
We've been here before. But as has always been said, if Johnson is ready for the deal on offer, there will be a deal. Let's see if he is.
Slightly more cautious. But Johnson to give reasonable ground on fish in return for ?electric vehicles?
More on the electric vehicles part of the story (and @SamuelMarcLowe wrote about it ages ago). Important to note, such concessions have a dual purpose of sealing a deal and giving the UK more incentive to stay in the EU regulatory environment
Read 5 tweets
23 Dec
Brexit like communism is destined to be something that would have been a glorious success if only it was done right. telegraph.co.uk/news/2020/12/2…
Remember the pure Brexit view is that the worst parts of the Withdrawal Agreement such as the Northern Ireland protocol and financial settlement were supposed to be overturned by the following agreement. Many really believed this...
And there weren't supposed to be trade-offs between sovereignty and access to the single market. The EU would give way. Those of us who pointed out that was unrealistic were told we were wrong...
Read 8 tweets

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