Brexit & Beyond newsletter

26 June 2023

Welcome to the 26 June 2023 Brexit & Beyond newsletter

The Specialised Committee on the Implementation of the Windsor Framework met on Friday. The Secretary of State for Northern Ireland took questions in the Commons. The Retained EU Law Bill returns to the Lords today in an extended round of ping-pong. Minister Badenoch has written to the Lords Sub-Committee about the Bill’s implications for Northern Ireland. Today’s newsletter also covers discussions on the UK’s Electronic Travel Authorisation Scheme, the Senedd Committee’s inquiry on EU-UK governance, and the UK’s negotiations to join Horizon Europe.

Friday marked seven years since the UK voted to leave the EU, and commentators have been reflecting - Jonathan Portes considers what we know about the economic impact of Brexit, and evaluates the debate around this. Former EU Chief Brexit negotiator Michel Barnier writes that Brexit remains a “lose-lose situation” for both the EU and UK. The Tony Blair Institute for Global Change has published a paper with recommendations for a better post-Brexit relationship. Jill Rutter writes for the Institute for Government that Brexit is likely to stay ‘done’ for some time yet. The Dublin City University Brexit Institute has published its 6th annual report on Brexit.

 

Specialised Committee on the Windsor Framework meets

The Specialised Committee on the Implementation of the Windsor Framework (WF) met on Friday, the second time the committee has met since the Framework was agreed. The EU and UK “took stock” of work undertaken to implement the agreement, including EU legislation on agri-food, medicines, tariff rate quotas and customs, and the UK’s publication of guidance to businesses. They agreed to continue meeting regularly, “to monitor and ensure the full implementation of all the elements of the Framework in a timely way.” The first meeting of the Enhanced Coordination Mechanism on VAT and Excise, a new body established in the WF, took place on 15 June 2023. The first meeting of the Special Body on Goods is also set to take place. Five structured sub-groups have been established to assist the Joint Consultative Working Group.

 

Questions to the NI Office

In the Commons on 21 June, the Secretary of State was asked about his work to restore power sharing in Northern Ireland and said, “The one thing that I did learn from the Windsor Framework negotiations is that confidentiality in modern-day British politics and western politics is key in trying to get anything over the line.” Heaton-Harris went on the make positive comments about the Framework: “we are now talking about all sorts of important other things that seem to have been unlocked by the Windsor Framework agreement,” he said.

Sir Jeffrey Donaldson (DUP) asked Heaton-Harris about legislation to “protect Northern Ireland’s ability to trade within the internal market of the United Kingdom and respect our economic rights under Article VI of the Acts of Union”. Donaldson expressed concerns about the “practical outworking of proposals in the Windsor Framework and what it means for the movement of goods in the non-EU lane.” Heaton-Harris pointed to the command paper’s statements on ‘unfettered access’ NI-GB, saying, “we need to put more flesh on that bone.”

 The Secretary of State for Northern Ireland Chris Heaton-Harris at the recent British Irish Intergovernmental Conference

The Secretary of State for Northern Ireland Chris Heaton-Harris at the recent British Irish Intergovernmental Conference | Source: Rory Arnold / No 10 Downing Street

Heaton-Harris also spoke to the Institute for Government last week. He said the Windsor Framework is “not a perfect solution…but goes a long way to solve the practical issues.” He hopes, when implemented at the end of October, the changes will be a noticeable difference for people. Heaton-Harris said NI businesses are “savvy” and have already noticed the opportunities which exist, especially in the agri-food and medicines sectors.

The Commons European Scrutiny Committee has published responses from the Secretary of State about EU law applying (or not) under the Windsor Framework. Heaton-Harris states that “providing a single definitive list of all disapplied law is not possible, because the question depends on the specific case at hand. For example, many EU rules are disapplied for goods moving in the ‘green lane’ to support UK internal trade, but continue, rightly, to apply in the ‘red lane’”. He explains, “the removal of EU law requirements has been provided for illustrative purposes to demonstrate the scale of change delivered through the Windsor Framework. Our assessment is that this is likely to be an underestimate”. This relates to the UK Government’s claim that the WF removes 1700 pages of EU law.

 

UK’s Electronic Travel Authorisation Scheme

Minister in the NI Office Steve Baker was questioned about the Government’s Electronic Travel Authorisation (ETA) scheme, which will require international visitors to obtain an ETA when visiting the UK. Baker said that his department and the Home Office met with NI tourism organisations “for discussions on how to communicate the ETA requirement”. The new arrangements do not apply to UK or Irish citizens. However, international visitors arriving in the Republic of Ireland and travelling on to Northern Ireland would be required to have an ETA. In a change to the initial plan, people who are legally resident in Ireland, and who do not need a visa, will not need an ETA when entering the UK from Ireland.

The government’s policy is that an exemption for tourists would undermine the scheme. The Northern Ireland Tourism Alliance (NITA) has criticised the ETA requirements for tourists. It estimates that around 70% of visits to NI arrive via the Republic of Ireland and that the plan risks 25% of all tourism spend in Northern Ireland. Baker said they are engaging with the Irish Government and hopes they can work together to “ensure that there is a consistent and coherent communication strategy to ensure that tourists know they must register for an ETA and must continue to comply with the UK’s immigration requirement”. Stephen Farry (Alliance) pointed out that Ireland is “marketed internationally as a single entity with respect to tourism”. He suggested, “treating movements on the island of Ireland the same as any entries into the UK from the rest of the world is not fair and does not recognise the specific circumstances that exist on the island.”

 

Retained EU Law Bill 'ping-pong'

The Retained EU Law (REUL) Bill returned to the House of Lords on Tuesday, as the Commons has rejected its amendments. It is unusual for multiple rallies of parliamentary ping-pong to take place. However, the Lords is pressing its amendments on environmental protection and on parliamentary scrutiny. Read a summary of the Lords stages.

Lord Krebs told the House he was making compromises on the environmental protection amendment, saying “I am trying very hard to make this amendment acceptable to the Government. I am not making a partisan point; I am simply trying to ensure that our environmental protections are not weakened.” Lord Hope noted the Government viewed his amendment, which would create a process for greater parliamentary scrutiny, as “novel and untested” so said his new proposed procedure is “relatively light-touch” and “gives Parliament some measure of oversight of what has been proposed...At the heart of it all is an issue of principle.” Lord Callanan, Minister in the Department for Energy Security, suggested Lord Hope was “pushing his luck slightly now… the Government cannot accept a procedure as unwieldy as what he has proposed.” He suggested, “this is actually about stopping Parliament acting in this area. The reform programme is a crucial part of the Government’s agenda, and it is not an appropriate balance between scrutiny and reform to restrict it in such a manner.” He reiterated the Government’s view that the environmental protection amendment is not necessary “in light of the many commitments we have made”.

 Lord Hope of Craighead

Lord Hope of Craighead | Source: House of Lords/UK Parliament under Attribution 3.0 Unported (CC BY 3.0)

The new amendments were voted on and agreed. The Bill returned to the Commons the following day, 21 June. The Solicitor General Michael Tomlinson suggested that Labour wants to “frustrate this necessary post-Brexit legislation…[and] delay the delivery of the significant opportunities that await us.” He said, “The Government want to get on with the job. Enough is enough.” Shadow Minister for the Department for Business Justin Madders (Labour) said, “I find myself both bemused and alarmed by the Government’s intransigence on this issue [environmental protection]. When they are not listening to their own watchdog and instead present arguments that disintegrate on the barest of examinations, it is right that we should continue to press for this amendment.” Madders pointed to REUL on paid holidays, disability rights and TUPE protections, saying “I do not believe anyone who voted to leave the EU voted to dispense with those rights. If it is the Government’s intention to change any of those protections, or the thousands of others that our citizens enjoy, it is only right that this place has a say in that.”

Alyn Smith (SNP) said the Scottish Parliament’s and Senedd’s refusal to grant legislative consent “should give any Unionist in this place cause for concern about the Bill.” He said his party was backing the Lords amendments “to make the Bill a little less bad.” Sir Robert Buckland (Conservative) argued that a “bulldozer approach” is not the right one, saying, “the scalpel surely should be applied to these regulations, so that we get it right.” He remarked that there may be a time that the Conservative party will no longer be in government: “we need to remember that we should be here to defend the position of this House irrespective of who might sit on the Treasury Bench,” he said.

The Commons disagreed with the Lords amendments. Today, 26 June, the Bill returns to the Lords.

 

Retained EU Law and Northern Ireland

The Lords Sub-Committee on the Protocol has (finally) received a response from the Secretary of State for Business and Trade Kemi Badenoch on the Retained EU Law Bill and its interaction with the Protocol/Windsor Framework. Minster Badenoch confirmed that the REUL on the schedule which extends to Northern Ireland will be revoked on 31 December 2023. The Government’s recent change to the Bill means a list of almost 600 laws (rather than all REUL which hasn’t been amended or replaced) will be repealed at the end of this year. She states, “The Government has committed to ensuring the necessary legislation is in place to maintain the UK’s international obligations, including the WF [Windsor Framework]” and said that nothing on the schedule undermines that position or is required for the WF. The Bill includes a power for governments to exempt legislation on the schedule from the sunset – if the NI Executive wished to disapply the revocation of REUL currently listed on the schedule, “they will be able to exercise the preservation power in respect of the relevant REUL within their areas of devolved competence.”

The Minister states that “generally it will not be necessary to legislate to account for the Bill measures relating to interpretive effects to ensure the UK continues to meet WF obligations” but the exception is law in the scope of Article 2 which “may be affected by the abolition of retained EU interpretive effects.” The Minister expects it may be necessary to use Bill powers “to restate the relatively small number of instruments within Article 2 to codify any required effects.” Under Article 2 of the Protocol, the UK Government committed to ensuring that there would be “no diminution of rights, safeguards or equality of opportunity” (as set out in the Good Friday Agreement) as a result of the UK leaving the EU.  The Minister states that “The principle of supremacy and general principles of EU law will continue to operate in relation to the application of EU law to Northern Ireland under the WF.”

Many of the questions the Lords have asked of the Minister are no longer relevant as the Government dropped the Northern Ireland Protocol Bill following the agreement on the Windsor Framework, and has replaced the sunset clause, which was causing significant concern, with the schedule of laws.

 

EU-UK governance and the role of devolved institutions

The Senedd Legislation, Justice and Constitution Committee held its first evidence session in its UK-EU governance inquiry with Professor Catherine Barnard of Cambridge University and Professor Simon Usherwood of the Open University. In particular, the inquiry is considering the role of the devolved governments in the governance and scrutiny of EU-UK agreements.

Barnard said the Windsor framework has changed things “significantly”: there are much better levels of co-operation and, she said, “it's extremely boring, and that is actually good news…because it's become technocratic not political…it does mean that things are more likely to get done without a lot of grandstanding.” Barnard called Windsor Framework “carefully choreographed and delivered, and …a highly sophisticated instrument.” However, she added that the problems come in its operation, noting the new labelling requirements are “causing a real headache for large and, particularly, small manufacturers, who have to redesign all of their labels…and it's a very short timescale to get it done by October.” In contrast, Usherwood said the new governance arrangements in the Framework represent “a very limited change indeed…it wasn't really a full reset.” He continued, “at best, it takes us back to where we probably should have been at the beginning of 2020.”

Barnard suggested a significant institutional change for Wales would be for the devolved institutions to have a formal role in some of the Trade and Cooperation Agreement committees, at least where they relate to devolved matters e.g. Welsh ports. She highlighted EU legislation which will have impacts for UK businesses such as the Digital Services Act, the Digital Markets Act, and the Corporate Sustainability Due Diligence Directive and emphasised the need for the UK to have “a very active presence in Brussels and a very effective lobby.”

Usherwood stated that the EU-UK Parliamentary Partnership Assembly (PPA), which meets next week in Brussels, is only an advisory body and is limited in its influence, suggesting that greater representation for devolved legislatures (which currently only attend as observers), in practical terms might not have much impact. Barnard said the devolved regions could have greater involvement through more Welsh MPs, Scottish MPs and Northern Irish MPs on the PPA. DUP leader Sir Jeffrey Donaldson sits on the PPA, the only Northern Irish MP in the delegation of 21 MPs and 14 peers. MLAs Declan Kearney (Sinn Féin) and Phillip Brett (DUP) attended the last meeting as observers.

 The second meeting of the EU-UK Parliamentary Partnership Assembly, held in Westminster. The PPA is made up of members of the European Parliament and the UK Parliament and exchanges views on the EU-UK Trade and Cooperation Agreement

The second meeting of the EU-UK Parliamentary Partnership Assembly, held in Westminster. The PPA is made up of members of the European Parliament and the UK Parliament and exchanges views on the EU-UK Trade and Cooperation Agreement | Source: European Parliament

Usherwood concluded that the committee could make most impact through working with other devolved institutions in pushing Westminster for more representation and involvement. Barnard said the focus should be on engagement with the EU directly in Brussels. She told the committee, “get out to Brussels and really put some effort into making a difference by meeting the relevant people” from the Commission and Parliament. She added, “go and to talk to the Norwegians and see what they do.”

 

UK’s future involvement in Horizon Europe

Catherine Barnard said the other disappointment is that the UK’s association to Horizon has not been concluded. The EU had blocked the UK’s association to its research and innovation funding programme over the dispute over the Protocol. In the House of Lords on Wednesday, the UK Government’s negotiations on Horizon were debated. Lord Kinnoull, former Chair of the Lords European Affairs Committee, said a sense of urgency is important, noting the Windsor Framework was agreed nearly four months ago. Lord Kinnoull remarked, “this is simply a discussion about money and about the premium being paid to join the Horizon programme. It seems to me that a one-issue discussion should take less than four months.” Viscount Camrose, Minister in the Department for Science said, “It is inevitably a complex negotiation with a number of moving parts, on which, I am afraid, I am unable to comment for fear of prejudicing the outcome of the negotiations.” The Government has announced an extension to the support provided to Horizon Europe applicants.

 

Other news

  • School trips to the UK from EU countries was debated in the Lords. The Tourism Alliance predicts this year there will be an almost 40% shortfall on 2019 levels for school visits from the EU because of more stringent immigration requirements. The Earl of Clancarty said, “This is costing us jobs and hundreds of millions of pounds in revenue, with Ireland now a favoured destination instead.” He has called for a youth group visa scheme. The Minister for Migration and Borders Lord Murray said the UK has reached an agreement with France to ease travel for schoolchildren and “Work is now under way to operationalise these arrangements.” He went on to say, “It is open to other Governments to negotiate an arrangement of the kind we have now negotiated with the French Government, and we would welcome such a step.”
  • The British-Irish Intergovernmental Conference took place on 19 June in London. The conference discussed the impact of the Windsor Framework on the NI Executive’s formation, and “agreed it presented a sound foundation for progress in Northern Ireland”. The UK and Irish Governments “agreed that the Windsor Framework provides certainty and stability for the people of Northern Ireland.” The UK and Irish leaders also discussed the potential implications of the UK Government’s Electronic Travel Authorisation (more on this above). The Conference will meet again in the Autumn.
  • The European Parliament Subcommittee on Tax Matters travelled to London on 19-20 June to discuss international taxation developments and the UK-EU relation in this area. The discussions included the implementation of the Windsor Framework in the area of VAT and excise duties.
  • The European Parliament Committee on Culture and Education was in Edinburgh on 19-21 June to discuss EU-UK cooperation on education, culture and youth matters. Head of delegation Niyazi Kizilyürek (The Left, Cyprus) said, “In many of our conversations, it became clear that Brexit has had a fundamental and negative impact on the education, culture and youth sectors in Scotland. We hope, that one day, the UK government will revise its unilateral decision and rejoin EU programmes such as Erasmus+, Creative Europe and the European Solidarity Corps. In the meantime, we will continue to look for practical solutions to mitigate the loss of opportunities for students, teachers, artists, creative workers and young people.”
  • US Special Envoy Joe Kennedy visited Northern Ireland last week. He said Northern Ireland’s access to the UK and EU markets give it “an unparalleled opportunity to innovate.”
  • The UK Department for Business and Trade announced a new ‘Developing Countries Trading Scheme’ to boost trade and cut tariffs on imports from 65 developing countries.

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