It's OUT!! My weekly #Brexit Briefing for @ft
This week: the transition from "CE" safety marks (u see them on everything) to "UKCA" marks - the UK's post-Brexit copycat version - which is creating pointless headaches for business...stay with me /1
@FT So what's this about? Well, as an expression of UK sovereignty after #Brexit the UK decided that it wanted its own equivalent of a CE mark -- even tho it remained part of European Standards Organisation which co-ordinates standards -- so UKCA was born /2
@FT Since standards are the same, and most businesses (in non risky sectors) can "self-certify", you might think this is just what @SamuelMarcLowe calls "performative divergence" -- just for #brexit show and a bit of harmless form-filling. Alas not. /3
@FT@SamuelMarcLowe For three reasons, this is a headache for business even before we've diverged (or the EU diverges) and we end up with dual or competing standards regimes... and it's headache that's gonna grow. /4
@FT@SamuelMarcLowe 1) for 'risky' products (cars, lifts, some construction materials etc) you can't self certify -- you have to use a "notified body" (a professional assessor) and there aren't enough of them! So per @NickJMellor for Lifts there is 1 body, but 1,000s of items to certify /2
@FT@SamuelMarcLowe@NickJMellor 1b) This creates a backlog of CE-marked products that need a UKCA mark by Jan 1 2022....and then raises Qs: what about old CE-marked lifts being repaired in UK -- a Siemens lift in Brighton say -- does the spare need a UKCA mark? No-one seems to know! /6
@FT@SamuelMarcLowe@NickJMellor It's worth remember at this point that none of this benefits anyone -- its still same EU standards, so it's not making things safer or better. Just cost to rebadge and re-label. Oh, and products from NI that can be CE marked can circulate in GB anyways! /7
@FT@SamuelMarcLowe@NickJMellor 2) This doesn't just impact UK businesses. If you have an EU supplier then they also need to get UKCA marks for all their products to be legal in the UK from Jan 1 2022. For some that'll be worth it, for some not. That's risk to UK supply chains tho - even before divergence /8
@FT@SamuelMarcLowe@NickJMellor 3) Then there is legal liability. To put a CE-marked product (some with UKCA mark) on market in GB, you must accept legal liability. (And vice-versa in EU). So companies are having to draw up legal agreements to cover liabilities if a court case happens. Yup, more cost! /9
@FT@SamuelMarcLowe@NickJMellor So this is why groups like Construction Products Association @CPA_Tweets and environmental services groups like @Actuate_UK are all howling for extension to Jan 1 2022 deadline -- an extension already granted to some, like Medical Devices, marine equipment /10
@FT@SamuelMarcLowe@NickJMellor@CPA_Tweets@Actuate_UK As Russell Beattie of the chief executive of the Federation of Environmental Trade Associations @FetaNews tells me, this isn't about refighting old battles: "We’re not remoaners. We need some sensible discussion about the consequences." /11
@FT@SamuelMarcLowe@NickJMellor@CPA_Tweets@Actuate_UK@FetaNews As @TimFigures, a former Biz sec adviser during the Theresa May era , observes, diverging from the EU regulatory framework brings “little or no benefit” in safety-critical industries like autos/aerospace -- even if it has some potential in 'future industries' like AI, tech etc/12
@FT@SamuelMarcLowe@NickJMellor@CPA_Tweets@Actuate_UK@FetaNews@TimFigures But the future doesn't help business fighting this senseless bureaucracy now -- all cost, no benefit. AND as standards evolve via ESO the UK will find itself an effective rule-taker (which it wasn't as an EU member) since standards link back to EU directives. /13
@FT@SamuelMarcLowe@NickJMellor@CPA_Tweets@Actuate_UK@FetaNews@TimFigures The politics of all this is pretty baffling. Was anyone sat in the 'Red Wall' or the Tory shires looking at the CE-marks on their TVs and kettles and yelling 'Oi! no, I want a Britshe CE mark!" Did they even notice them? Would anyone notice now? Can't believe they would /14
🚨🚨🇬🇧🇪🇺🇬🇧🇪🇺🇬🇧 🚨🚨EXC Johnson’s post-Brexit trade policy faces first High Court test via @FT - one for #brexit and trade wonks, but fascinating and a case that will be widely watched per @AlexanderPHRose —
Stay with me/1 on.ft.com/2UkXnhZ
@FT@AlexanderPHRose So first the case. It stems from a decision last December by @trussliz to unilaterally allow 260,000 tonnes of "raw cane sugar" to enter the UK tariff-free, for one year. So far, so simple /2
@FT@AlexanderPHRose@trussliz But British Sugar Plc @BritishSugar has gone to court to argue that this 'autonomous' quota is a de facto subsidy to their US-owned rival Tate & Lyle Sugars @TateLyleSugars because T&L is the ONLY company in UK that refines *cane* sugar -- BS uses homegrown sugar beet/3
The UK Govt is announcing tabling legislation on it's new post-Brexit subsidy control regime today, which it says will be simpler/nimbler...here's @FinancialTimes report with help from @GeorgePeretzQC @jamesrwebber -- but lots of questions unclear.../1
@FinancialTimes@GeorgePeretzQC@jamesrwebber This is an area where the UK -- because it no longer needs subsidy controls fit for yoking together 27 sovereign economies as in the EU single market situation -- can indeed be nimbler/quicker....see long #Brexit Briefing piece & thread on why/how here /2
We now need to see the detail of how the "Advice Unit" in the CMA is going to work -- what role it will play in decisions over potentially controversial subsidies "of interest" and "of particular interest"....and how those categories are going to be decided/3
🚨🚨🇬🇧🇪🇺🚛🚛🚛🇪🇺🇬🇧🚨🚨How Britain’s Channel ports avoided feared #Brexit meltdown…how the French helped, but how the disruption was displaced to depots (and may yet arise when passenger travel restarts). Latest for @FT series. Stay with me/1 on.ft.com/3quPLpn
@FT So first the 'reasonable worst case' as set out last Sept by @michaelgove (not 'remainers' as some Brexiters might have you believe) -- 7,000 lorries in Kent, 2 days queues etc. Armageddon. But it didn't happen. Why? And what did happen? /2 ft.com/content/aa42ac…
@FT@michaelgove Talking to Govt, Industry, Hauliers, Logistics the main reasons are as follows:
- stockpiling. 230k trucks thru Dover in November, highest of the year.
- much lower trade in Jan. “A lot of smaller suppliers just backed off,” says Tim O’Malley of @NationwidePlc /2
🚨🚨🇬🇧🇪🇺🚛🥩🚚🐟🍸🏭🇪🇺🇬🇧🚨🚨Six months on and UK businesses are still battling with Brexit, finds exclusive @The_IoD @cmi_managers surveys for @FT — red tape, labour shortages etc. With @DanielThomasLDN
@The_IoD@cmi_managers@FT@DanielThomasLDN So the @The_IoD survey 651 members. Of those that traded with the EU, only 6 per cent said their trade with the bloc had increased after EU-UK Trade and Cooperation Agreement came into force. 31 per cent said it had decreased. /2
@The_IoD@cmi_managers@FT@DanielThomasLDN Not sure this necessarily that surprising, but it's a reminder that this EU-UK Trade deal that was, per @BorisJohnson creating 'no non-tariff to trade' has hit trade (as we know).
If this was any other trade deal, we'd say it was a total failure. /3
@MichaelAodhan@ColdChainShane@FinancialTimes@SamFleming10@PickardJE One reading, it's an EU climbdown - the 'conditions' for the extension to the grace period on sausages are pretty woolly (keep labelling and seeking permanent solution, ideally a EU-UK vet deal) - but equally it's an improvement on unilateral action /2
Because the EU still wants the "core" of the Protocol to be implemented - viz respecting and applying the list of EU rules/directives in the annexes to all goods travelling from GB to NI /3
@FT@trussliz@William_Bain@chrisouthworth@AlexanderHorne1@Brigid_Fowler In short, industry has had a pretty adversarial relationship no trade -- given that the govt railroaded through a horribly minimalist TCA deal with our biggest trade partner...but now we're moving into next phase (eg new deal with Aus) really wants better co-ordination /2