{"id":63221,"date":"2018-02-11T07:40:28","date_gmt":"2018-02-11T07:40:28","guid":{"rendered":"http:\/\/www.bnreport.com\/brexit-cherry-picking-is-inevitable-but-it-will-cost-3\/"},"modified":"2018-02-11T07:40:28","modified_gmt":"2018-02-11T07:40:28","slug":"brexit-cherry-picking-is-inevitable-but-it-will-cost-3","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/brexit-cherry-picking-is-inevitable-but-it-will-cost-3\/","title":{"rendered":"Brexit cherry-picking is inevitable \u2014\u00a0but it will cost"},"content":{"rendered":"

LONDON \u2014 Brexit cherries are there to be picked. The only question is how much to charge for them.<\/p>\n

Across Europe, the very idea of cherry-picking is met with horror. \u201cKeine Rosinenpickerei<\/em><\/a>!<\/em>\u201d <\/strong>demands Berlin. The fruit might be different (raisins) but the message is the same: The EU\u2019s orchard of goodies is for members only. No ifs, no buts.<\/p>\n

The European single market\u2019s golden (if patchy) four freedoms of people, capital, services and goods are indivisible. \u201c\u00c0 la carte\u201d<\/em> access, as EU Brexit negotiator Michel Barnier is fond of putting it, isn\u2019t an option.<\/p>\n

Except, that\u2019s not really the case \u2014 it just depends how you define the cherries.<\/p>\n

\n

And yet European officials are happy to offer cherries (of a kind) where it suits them, say British officials.<\/p>\n<\/blockquote>\n

In Whitehall the talk of cherry-picking is met with a roll of the eyes. \u201cWe\u2019ve conceded the point,\u201d said one U.K. official. \u201cThat\u2019s why we\u2019re leaving the single market.\u201d For the U.K. it is now simply a question of mutual self interest to agree a comprehensive trade deal keeping barriers as low as possible.<\/p>\n

One EU27 diplomat who spoke to POLITICO on condition of anonymity agreed that the cherry-picking rhetoric was past its sell-by date. \u201cIt is not helpful,\u201d the official said. \u201cEvery single free trade agreement involves cherry-picking. That is what they are.\u201d<\/p>\n

The official, who works closely on his country\u2019s Brexit preparations, said such binary rhetoric stood in the way of the real choice facing the EU: how to ensure life outside the club is worse for the U.K. than before. In other words, how much to charge the U.K. for a trade deal.<\/p>\n

German Chancellor Angela Merkel warned early on of the dangers of British cherry-pickers. \u201cOne cannot lead these negotiations based on the form of \u2018cherry-picking,\u2019\u201d Merkel said in a Cologne speech in January last year<\/a>, well before the Brexit negotiations got underway. \u201cThis would have fatal consequences for the remaining 27 EU states.\u201d<\/p>\n

And she has made the requirement for Britain to pay a demonstrable price crystal clear to EU leaders at the European Council, according to the EU diplomat who did not want to be named. \u201cEveryone is clear this [new relationship] cannot translate into absolutely no change, particularly if the British are insistent on restricting free movement,\u201d he said. \u201cBut what does this mean? We don\u2019t know yet.\u201d<\/p>\n

On this fundamental question \u2014 how to limit the scope and depth of Britain\u2019s new trade deal \u2014 there has not yet been a formal discussion among the EU27, the diplomat said. The EU\u2019s pound of flesh, as it stands, is unknown.<\/p>\n

For the EU, whatever price they set on Britain\u2019s post-Brexit access is problematic because it inevitably comes with costs attached in return, which will not be shared out equally among the 27, some of which have highly integrated economies with the U.K. while others do not.<\/p>\n

The retort from the EU side is that they cannot name the cost of something if Britain is unwilling to say what it wants. \u201c[The] time has come to make [a] choice,\u201d as Barnier put it<\/a> on his visit to Downing Street Monday.<\/p>\n

And yet European officials are happy to offer cherries (of a kind) where it suits them, say British officials. From the Erasmus exchange program to joint space projects, there is a willingness in Brussels to consider joint projects after Brexit before the outlines of a future relationship have been set.<\/p>\n

\u201cWe have always signaled that \u2014 on Horizon 2020\/Erasmus\/innovation \u2014 third country cooperation exists,\u201d one EU official said. \u201cThe U.K. can continue to take part under different financial and legal conditions compared to today once it has left.\u201d This kind of pay-as-you-go relationship with the EU doesn\u2019t count as cherry-picking in Brussels\u2019 terms because these programs are not core to the single market.<\/p>\n

But, counter the Brits, any free-trade agreement involves access to the single market. The CETA deal with Canada, for example, abolished 98 percent of EU tariffs on Canadian goods<\/a>. It cuts tariffs on Canadian forestry and wood products from 10 percent to zero and also eliminates tariffs on Canadian fish exports \u2014 some of which were as high as 25 percent<\/a>. Canadian firms will also have guaranteed access to European public procurement.<\/p>\n

\n

In the Brexit negotiations, Britain will ask for as many cherries as it can get.<\/p>\n<\/blockquote>\n

Canada did not have to accept European Court of Justice jurisdiction or freedom of movement in return (although there are potential sanctions if it violates parts of the deal), so that looks from London remarkably like a form of cherry-picking. The Brits just argue that a U.K. deal should involve juicier cherries since it is starting from a position of maximum alignment.<\/p>\n

The lesson, say British officials, is that free-trade agreements are not bought off the shelf \u2014 they vary depending on the size and shape of each economy (hence why they take so long to negotiate). They are quintessential exercises in cherry-picking.<\/p>\n

In the Brexit negotiations, Britain will ask for as many cherries as it can get. It is up to the EU to name its price.<\/p>\n

Original Article<\/a><\/p>\n

[contf] [contfnew] <\/p>\n

<\/a><\/h5>\n","protected":false},"excerpt":{"rendered":"

LONDON \u2014 Brexit cherries are there to be picked. The only question is how much to charge for them.<\/p>\n

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