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Ella King: Sunak and Truss should think twice before abandoning all EU trade laws

By Brexit, Centre Write

Throughout the Conservative leadership race between Rishi Sunak and Liz Truss, the economy has been a focal point in the bid to be the next Prime Minister and Leader of the Conservative Party. As we submerge further into a cost-of-living crisis brought on by the pandemic, the war in Ukraine and high inflation, economic policy is more important than ever to win public support. As such, both Sunak and Truss are keen to “unleash the full potential of Britain post-Brexit”.  

Perhaps one of the only proposals that the two candidates are both in agreement with is the promise to distance the UK from EU law. Both Truss and Sunak have promised to scrap or reform all EU law still on the statute book, with Truss pledging to do so by the end of 2023 and Sunak committing to getting the job done by the next general election scheduled for January 2025. The rationale behind this is for the UK to have its own set of rules, which Sunak and Truss argue will give the country an ‘economic edge’. 

Truss promises to get rid of ‘outdated’ EU law if elected, with a review of all EU law that hinders growth, whilst Sunak insists he will use “the freedoms Brexit has given us to cut the mass of EU regulations and bureaucracy holding back our growth.” Sunak has suggested that EU law needs to be evolved in three major ways; firstly, he proposes to scrap the EU financial service regulations (including the EU’s Solvency II rules) to help investors put money into assets that will accumulate to long term economic growth. Sunak also wants to replace the EU’s General Data Protection Regulation (GDPR) with “the most dynamic data protection regime in the world”, as he believes the EU’s GDPR is “preventing British tech companies from innovating and public services from sharing data to prevent crime.” Thirdly, Sunak has a focus on speeding up the clinical trials approval process which he claims “is still complicated and slowed down by EU red tape.” Similarly, Truss has called for a ‘red tape bonfire’, to set alight overly complex EU law to encourage investment and growth. 

When reviewing these proposals, it appears that Brexit has given the UK the freedom to leave EU law, which can indeed be overly complex. However, does a complete re-writing of EU law pose the risk of the UK becoming an unreliable and untrustworthy international partner? 

One may wonder if both contestants are being overly-hasty in their pledges to completely transform EU law to accelerate the economy. These pledges have been met with a mixed reception, with there being some criticism that suggests the proposed reforms are too costly. For instance, scrapping the EU regulatory regime for the chemicals industry in favour of a UK-only version is likely to cost the business industry some £2 billion, which is just the bill for a single industrial sector. 

However, not all deviation is negative since it can also serve to uphold the protection of British businesses. The New Procurement Bill, which will replace 350 EU laws “with a single, simple and flexible framework for securing public sector contracts” aims to level the playing field for small and medium-sized enterprises (SMEs) and drive economic growth across the UK. Therefore, this amendment both helps the British economy and does not really impact Britain’s reputation as an international partner, as it is concerning domestic affairs. 

On an international scale, Catherine Barnard from the UK in a Changing Europe think tank states that the more divergence there is [from EU law], the more trade friction there will be.” Therefore, both Sunak and Truss will have to consider how far they are willing to diverge from EU law, and whether diverging truly is the most beneficial way of giving Britain an international ‘economic edge’, whilst protecting its own businesses. 

After all, the EU will continue to control what can be sold in the single market, and if our new legislation is too deviating, trading with EU countries could become limited and may result in detrimental effects for UK businesses. Joint regulation (within the EU markets) rather than complete deviation appears to be the best route to strengthen the UK economy as it allows for greater trade freedoms. Previously, whenever British companies faced sales adversities in other EU markets, they petitioned governments to press for EU rules. 

Thus, to progress economically in the most effective manner does not necessarily call for a ‘bonfire’ or ‘race’ to diminish EU law.  In reality, scrapping EU law only appears to be doing more harm than good in costing not only a lot of money, but potentially Britain’s reputation and economy on an international scale. Sunak and Truss should therefore think twice before taking an axe to EU law. 

Ella King is currently undertaking work experience at Bright Blue. Views expressed in this article are those of the author, not necessarily those of Bright Blue. [Image: Call Me Fred]

Lachlan Rurlander: Making the most of Brexit will help British farming thrive

By Brexit, Centre Write

The issue of Britain’s farming future post-Brexit has returned to the spotlight since the passing of the government’s Agriculture Bill on Monday, which lays out the framework for future agricultural policy.

The bill succeeds in identifying the opportunities Britain has outside the EU, and makes good suggestions as to how to exploit these opportunities. Those who criticise the Bill fail to recognise two important points. 

First, they fail to see that EU membership has been bad for British farmers. Just this week, the EU has imposed $4 billion of tariffs on American goods coming into the EU, from machinery to food. As part of this, tariffs will be imposed on tractors. Since the American tractor giant John Deere accounts for 31% of British tractors, this tariff would have had a negative effect on British farmers if we were staying in the EU.

The EU’s Common Agricultural Policy (CAP) has similarly hurt British farming. It hands out cash to farmers who plough up rich and delicate natural environments, paying the largest landowners the highest sums. The CAP has meant that small, struggling farmers have no choice but to turf up hedgerows and meadows, or see their businesses consumed by lean, mean, profit making machines.

The problem with the CAP is that it does not recognise the link between production and sustainable farming practices. Top soil erosion, for example, has been exacerbated by the industrialisation which has occurred due to the CAP, and now threatens future productive potential. Likewise, the EU’s subsidies to hill farmers to cut down trees to farm more sheep has led to an increase in flooding. Trees act as a natural drag on floodwaters, and the destruction of our native woodland is largely owing to poor agricultural policy.

Thankfully, the new Agriculture Act will mean that the direct payments of the CAP to the largest landowners will be gradually phased out, and replaced with subsidies paying farmers and landowners for protecting ‘public goods’. This will mean we have a system which encourages farmers to protect natural habitats rather than destroy them. Farmers recognise the importance of this too. They more than most understand how integral a healthy ecosystem is to the production of food. The Agriculture Act is a positive first step towards a post-Brexit vision for British farming.

But there is much more that could be done to fulfil the aims of the Act, namely to support British farmers to produce high quality food in a sustainable way. For example, the government should reverse the EU’s requirement to have a fully qualified vet present at every slaughterhouse. This law has led to the closing down of many small-scale abattoirs which can’t afford the cost of employing a full-time vet. In turn, this meant yet more industrialisation of farming practice, as fewer and larger farms became the customers of fewer and larger abattoirs.

On the issue of subsidies, we can take a leaf out of New Zealand’s book. All tax breaks and subsidies for Kiwi farmers were abolished in 1985. But through better pasture management and top soil creation, farming in New Zealand has become considerably more productive. Since the removal of any state support, sheep numbers have halved, and yet the productivity of those sheep farms has increased by 161%. New Zealand shows that sustainability does not have to mean less production, and that liberal trade rules can subsequently lead to better practice.

Second, the agriculture policy is criticised on the basis that it doesn’t protect UK food standards in any future trading agreements we make post-Brexit, particularly with the US. Concerns have been raised about the differing food standards between British and American produce. What passes as legal practice over there is outlawed here. The argument that an FTA would lead to British farmers being undercut by cheaper American food is well trodden. However, it is flawed.

Allowing tariff-free imports of American food will not only lead to a net welfare gain for consumers, but it will be good for British farmers.

Those who cry foul over the prospect of waves of chlorinated chicken coming into the UK fail to grasp what any future trade deal with the US would be like. Firstly, they do not understand that trade is a two way affair. Just as American farmers would be able to sell their produce in our country, so too would British farmers be able to sell their food to American consumers. The opening of the American market, currently untapped and bordered off by crippling EU tariffs would be a huge win for British farming. Added to this is the fact that 80% of British consumers don’t support importing chlorinated chicken in the first place. It seems that consumers in this country will, on the whole, continue to buy British anyway.

Cheaper food options for British consumers does not have to be bad news for British farmers. An FTA which includes agri-products will mean that British farmers will have to become more innovative and forward looking in their farming practices. This does not mean more intensification of British farming. Quite the opposite. As has been established, the protection of the environment goes hand in hand with agricultural productivity. Increased competition, therefore, would only further the ability and capacity of our farms to protect and diversify our natural landscapes, enabling further sustainable production.

Britain needs an agricultural policy which recognises the benefits of free trade, and simultaneously sees the gains in productivity of radical sustainability. The abolition of barriers to trade, adequate support for the protection of our environment, and the removal of harmful subsidies associated with the CAP will ensure British farmers can go from strength to strength in the years ahead.

Lachlan is currently undertaking work experience at Bright Blue. Views expressed in this article are those of the author, not necessarily those of Bright Blue. [Image: David Wright]

Christopher Lim: The liberal conservative case for CANZUK

By Brexit, Centre Write

In recent days, talk dismissing the Government’s attempts at building post-Brexit relationships has been rife. The appointment of Tony Abbott, former Australian Prime Minister, is to become the UK government’s post-Brexit trade adviser and the election of Erin O’Toole as Leader of the Conservative Party in Canada has increased the salience of CANZUK – a proposed economic and trade alliance between Canada, Australia, New Zealand, and the United Kingdom. Proponents of CANZUK also advocate for freer immigration, given that these countries have similar levels of GDP per capita but also a wide variety of industries and sectors.

Critics argue CANZUK is a fantasy, dreamt up by the right to avoid the path of nationalist hinterland, but also European integration. Moreover, the left see CANZUK and its proponents as being short of ideas. The choice of former Prime Minister Tony Abbott as a trade adviser has provoked outrage from the Shadow Trade Secretary Emily Thornberry, who blasted him as an “offensive, leering, cantankerous, climate change-denying, Trump-worshipping misogynist”. 

That may be only one instance, but the overall message remains the same. Among liberal conservatives, advocacy and interest appears to be less strong. However, the black-and-white interpretation of CANZUK as being an unrealistic fantasy versus a potential world superpower is clearly misguided. 

The mainstream argument for CANZUK couldn’t be clearer: the UK needs to participate in more values-based partnerships and alliances. This shouldn’t be limited to NATO or the EU, but should look wider, towards countries that share the same legal system and language as the UK. The concept of ‘values-based’ partnerships and trade in terms of CANZUK was first coined by Erin O’Toole, during the leadership election of the Conservative Party of Canada.

There, he emphasised the challenges that the UK faces and how they are similar to those that Canada faces. O’Toole made clear that embracing CANZUK was, by no means, shutting oneself off from the rest of the world, but instead demonstrating an active interest in pursuing certain values. When it comes to negotiations and relations between countries like China, there are clearly questions, especially on the right, about what the Chinese government represents and the geopolitics of trading relations. 

In fact, many have proposed CANZUK as being an alternative or a united front against countries like China. This was demonstrated when all four countries, in response to the Hong Kong National Security Law, suspended their extradition agreements, with some countries hinting at routes out of Hong Kong. Many advocates argued that this demonstration of ‘solidarity’ was the start of a newer alliance between the four countries in favour of democratic values.

This, however, is a misconceived notion. If anything, proposals of more relaxed immigration between these countries are not an attempt to wall them off from the rest of the world, however disagreeable their politics may be. A CANZUK proposal would, in fact, promote more values-based trade and emphasise the importance of democratic values, a fair judiciary, and common law in these countries. 

CANZUK is not a nationalist project like the EU and allows each country to pursue their individual policies and positions. For example, Britain with its nuclear umbrella can still trade and make alliances with anti-nuclear New Zealand, despite their vastly different positions on this issue. This is an example of how countries with a shared history, a shared monarch, and a shared legal system, among others, can put one another first and demonstrate the importance of those values whilst still pursuing vastly different domestic policies.

Christopher is currently undertaking work experience at Bright Blue. Views expressed in this article are those of the author, not necessarily those of Bright Blue.

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Adrián Legaria: The roots of Euroscepticism

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Adrián Legaria: The roots of Euroscepticism

By Brexit, Centre Write, Foreign

Across Europe, populism has surged as populist movements have used the political salience of globalisation, immigration and sovereignty to burst into the mainstream. Many scholars, such as Lukas and Benjamin Kaelin, have argued that Austria’s Freedom Party, Italy’s Lega party, and the UK’s Conservative Party are all examples of parties running populist governments.

If populism is a Europe-wide phenomenon, the same can be said about Euroscepticism. Indeed, it would be wrong to see British Euroscepticism as simply another version of Englishness. Euroscepticism in Europe comes at a time when the continent (and not only the UK) faces pressure between capital and labour; pluralism and conservatism; and, the rise of nationalism contrary to cosmopolitanism. Brexit could be the most prominent event when it comes to Euroscepticism, but the three predicaments mentioned above are embedded in most European countries.

The struggle between capital and labour has been fuelled in recent years by globalisation. Both the Euro and the migration crises spurred Euroscepticism in Austria and Italy, with the latter discussing departure from the Euro. Europeans suspect that the Union has been envisioned for the upper-middle-class, increasing the economic gap within nations. 

The tension between nationalism and cosmopolitanism runs parallel to the dispute on how democratic the European Union is. This debate is more sustained in Europe than the migration and economic discussions, because to some extent, all European countries are increasingly worried about the technocratic nature of Brussels. A clear example of this is the European Parliament elections of 2014 that saw widespread support for Euroscepticism. It comes as no surprise that a Eurosceptic party is present in every country. Added to this is the way Germany is being portrayed following both the migration and eurozone crises as the leader of the Union. To some extent, the nature of the Union discredits the concept of a nation-state, throwing up the question of whether it is possible to maintain sovereignty as we know it in a globalised world. Brexit draws attention to the European mismatching between pluralism, national identity and citizenship.

The struggle between pluralism and conservatism, expressed most clearly in the migration dilemma, is linked with the previous critique against capitalism and a cosmopolitan society. This debate is being reframed following the migration crisis by Euroscepticism, mainly in the countries that are part of the Visegrád Group.

The three struggles mentioned above can overlap and are sometimes used interchangeably in Eurosceptic parties. For instance, migration is bound up in debates around multiculturalism, and when it comes in the form of illegal immigration, it is seen to reduce labour’s sway against companies or government.

The European multi-layered and multi-cultural project has become difficult to sell in terms of political community; electorates will be more willing to accept migration when they think their immediate government is controlling it, associating border control with state sovereignty.

The losers of globalisation, therefore, are not only represented in the UK. The Eurozone and migration crises have produced the idea that dealing with a crisis is Europe’s new standard, with record levels of Eurosceptics in the region. The reactive nature of Euroscepticism, mentioned above, means it is possible to link these movements across Europe the way populism is being intertwined. What can be different from each nation is not the nature of the problem but the way each nation addresses it. Britain tested its support and failed; the same can happen in other European countries.

The Union was an economic solution to the strain of nationalist politics in Europe that was seen as a harbinger for both world wars. But in recent years participants in the Union have asked themselves, where are those economic benefits? And because of the technocratic nature of the Union and its inability to deal with discontent, a localised problem, if unattended, can quickly escalate to a desire to leave the Union as a whole.

Brexit will influence the Union; it might not involve a disintegration process such as the one facing the British Isles, but certainly is a decisive point in history. Add to this other crises facing the EU, such as persistent flows of migration from the Middle East, and it is likely that Euroscepticism will spread further if there is no apparent response to it.

Adrián is currently undertaking work experience at Bright Blue. Views expressed in this article are those of the author, not necessarily those of Bright Blue.