Thursday, July 09, 2020
Leaked letter casts doubt on government border plans
There is an interesting article in Business Insider concerning a leaked letter from the UK's international trade secretary, Liz Truss that casts doubt on the legitimacy of the Prime Minister's post-Brexit border plans.
The letter claims that the border plans could break international trading rules, risk the UK's international credibility, and lead to smuggling from the European Union. Although Britain is set to leave EU trading and customs rules at the end of the year, the government announced last month that full border controls would not be applied on goods until July 2021:
Business Insider reported last week that the decision raised serious concerns among business groups, who said a delay could be a "disaster" for firms trading with the EU.
On Wednesday, Liz Truss, the international trade secretary, wrote in a letter to Rishi Sunak, the chancellor of the exchequer, and Michael Gove, the chancellor of the Duchy of Lancaster, expressing four "key areas of concerns" about the government's plans to leave EU trading and custom rules at the end of 2020.
Truss said the plans could create a series of logistical, political, and reputational risks for the government, including:
"I would like assurances that we are able to deliver full control at these ports by July 2021 and that plans are in place from January to mitigate the risk of goods being circumvented from ports implementing full controls," she wrote.
Truss also said she was worried that the legality of the UK's plan for a phased approach to checks on goods coming from the EU from January to July could be challenged at the WTO.
She said the UK would "be vulnerable to WTO challenge" because of its border policy. This is because the UK plans to temporarily give the EU preferential treatment, which could be a breach of WTO rules if there is no UK-EU free-trade agreement in place.
Truss also suggested that as of January 1, all goods going to Northern Ireland from elsewhere in the world could have the EU tariff applied by default, as the system for applying both UK and EU tariffs is not expected to be ready on time.
"I understand that the digital delivery of the dual tariff system (both EU and UK tariff) in Northern Ireland is a high risk and that HMRC are planning to apply the EU tariff as a default to all imports in NI on 1 January 2021," she wrote.
None of this is new of course. Many of us have been trying to tell the government about these problems for some time. Will they listen now? I doubt it.
The letter claims that the border plans could break international trading rules, risk the UK's international credibility, and lead to smuggling from the European Union. Although Britain is set to leave EU trading and customs rules at the end of the year, the government announced last month that full border controls would not be applied on goods until July 2021:
Business Insider reported last week that the decision raised serious concerns among business groups, who said a delay could be a "disaster" for firms trading with the EU.
On Wednesday, Liz Truss, the international trade secretary, wrote in a letter to Rishi Sunak, the chancellor of the exchequer, and Michael Gove, the chancellor of the Duchy of Lancaster, expressing four "key areas of concerns" about the government's plans to leave EU trading and custom rules at the end of 2020.
Truss said the plans could create a series of logistical, political, and reputational risks for the government, including:
- A legal challenge from the World Trade Organisation.
- Increased smuggling from the EU if not all UK ports are ready to carry out checks.
- Concerns over the union if EU tariffs are applied to all goods heading to Northern Ireland by "default." The undermining of the UK's international trade policy.
"I would like assurances that we are able to deliver full control at these ports by July 2021 and that plans are in place from January to mitigate the risk of goods being circumvented from ports implementing full controls," she wrote.
Truss also said she was worried that the legality of the UK's plan for a phased approach to checks on goods coming from the EU from January to July could be challenged at the WTO.
She said the UK would "be vulnerable to WTO challenge" because of its border policy. This is because the UK plans to temporarily give the EU preferential treatment, which could be a breach of WTO rules if there is no UK-EU free-trade agreement in place.
Truss also suggested that as of January 1, all goods going to Northern Ireland from elsewhere in the world could have the EU tariff applied by default, as the system for applying both UK and EU tariffs is not expected to be ready on time.
"I understand that the digital delivery of the dual tariff system (both EU and UK tariff) in Northern Ireland is a high risk and that HMRC are planning to apply the EU tariff as a default to all imports in NI on 1 January 2021," she wrote.
None of this is new of course. Many of us have been trying to tell the government about these problems for some time. Will they listen now? I doubt it.
Comments:
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How long before Ms Truss is sacked by the Johnson/Cummings axis which does not appreciate dissent or criiticism?
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