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Davos 2019: UK trade chief sells great new world after Brexit

Britain's pro-Brexit trade chief Liam Fox came to Davos Wednesday to sell a vision of "GREAT" free trade even if many in the UK parliament are aghast at where the country is going.

Davos 2019: UK trade chief sells great new world after Brexit
UK Secretary of State for International Trade Liam Fox in Davos on Wednesday. Photo: AFP

Interviewed by the AFP news agency at the World Economic Forum, the international trade secretary said Britain remains a world-leading destination for foreign investment despite Brexit clouds and the departure of a number of companies.

Read also: Everything you need to know about Davos 2019

He welcomed a proposal by Poland that could potentially unblock a problem surrounding the Irish border that is holding up a deal on Britain's exit from the European Union.

Many of Fox's parliamentary colleagues, including in his own Conservative Party, have stressed they will do all they can to avoid a “hard” Brexit in March.

But given the risk of Britain crashing out of the EU without a deal, Fox said he expected soon to sign several pacts with trading partners outside Europe to try to ensure a seamless transition.

The UK government is engaging in a bit of poster diplomacy in Davos. Photo: AFP

He shrugged off news that Sony has joined the drift of companies, especially from Japan, that are shifting the registration of their European headquarters, if not operations, out of Britain.

Instead he pointed to figures from the consultancy Deloitte showing Britain has attracted more foreign investment than Germany and France combined since it voted to quit the EU in 2016.

“So clearly the UK is open for business and is an attractive destination for foreign direct investment — and that during the time where there's been uncertainty over Brexit,” he said. 

Read also: Switzerland ramps up preparations for no-deal Brexit

Polish Foreign Minister Jacek Czaputowicz broke ranks with the rest of the EU this week by suggesting a time-limit of five years might be possible on the so-called Irish backstop as a way to “unblock negotiations” between London and Brussels.

Fox commented: “I welcome constructive thinking on this. The prime minister (Theresa May) has made it very clear that we will welcome any option that might enable us to deal with the backstop issue. 

“We want to reach an agreement so that we can get the withdrawal agreement through parliament to give us a timely exit of the European Union, so that we can start to talk about our future relationship, rather than simply our exit.”

Poster diplomacy

In case of no deal, Fox has won agreements with Australia, New Zealand, Chile and Switzerland to ensure mutual recognition of standards in goods trade, providing a bridge to new trading regimes for Britain outside the EU.

He has admitted that he will fall short of his previous boasts that some 40 such pacts would be ready the day after Brexit.

Read also: $10,000 hotel rooms: the staggering numbers that tell the story of Davos

“There are a number that we expect to be signing over the next month or so,” he told AFP, declining to say how many.

During his two days in Davos, Fox is meeting with trade ministers from South Korea, Hong Kong, Canada, Colombia and Israel. 

He is also overseeing a striking visual campaign in Davos to underline Britain's historic record on trade, playing on a long-running tourism campaign that emphasises the “Great” in Great Britain.

A giant poster erected on the front of the swanky Belvedere Hotel by the British government declares in all capitals: “FREE TRADE IS GREAT.”

Fox conceded that some trading partners do not see the point of negotiating stop-gap arrangements, as they are unconvinced that Britain will fail to reach a deal with the EU.

“My view to them is, don't take the chance, because it (no deal) could happen. It's maybe unlikely, but businesses will never criticise you for being over-prepared.

“So our message to our trading partners is put the work in and if it turns out you didn't need to have it, that's fine, but you don't want to be caught napping.”

If it does fail to clinch agreement with the EU, Britain would revert to basic rules set by the World Trade Organisation to manage its export and import of goods.

While that is the preferred fallback option of Brexiteers such as Fox, some WTO members in Geneva have reportedly balked at simply translating Britain's EU commitments into a new document, arguing it would give London advantageous terms.

Fox said such objections were a “red herring” as the EU itself had never traded under certified WTO commitments, known as schedules.

“We are very clear, having set our schedules out, that the UK intends to be a very open economy and we intend to use our independent seat at the World Trade Organisation to push for greater liberalisation,” he said.

TRAVEL NEWS

EES: Could the launch of Europe’s new border system be delayed again?

After being postponed several times already Europe's new biometric Entry/Exit border system (EES) is set to be rolled out in October, but with fears of lengthy queues, problems with a new app and demands for more time, could it be postponed again?

EES: Could the launch of Europe's new border system be delayed again?

Could the entry into operation of the EU entry/exit system (EES), the new biometric passport checks for non-EU citizens at the Schengen area’s external borders, be delayed yet again?

Originally planned for May 2022, EES has already been postponed many times.

The current launch date, set for October 2024, was chosen to avoid periods of peak traffic and France in particular had requested to avoid it being launched until after the Paris Olympics this summer.

When asked to confirm the October start date this week a spokesperson for the EU’s Commission told The Local that the “roadmap” for the EES IT system foresees it will be ready for Autumn 2024. But the actual start date, in other words, the day when passengers will have to register, would be confirmed nearer the time.

The spokesperson said: “The exact date will be determined by the European Commission and announced on the EES official website well in time for the start of operations.”

READ ALSO: Your key questions answered about Europe’s new EES passport checks

But the reasons are adding up to suggest an October start date is optimistic, perhaps even unlikely.

In the annual report on the ‘State of Schengen’ published last week, the European Commission spelt out that severe challenges remain if member states are to be ready on time.

“In 2023, efforts to ensure the entry into operation of the Entry-Exit System in the autumn of 2024 were accelerated… While important progress has been made across the Schengen area, some Member States are still falling behind, notably regarding the effective equipment of border crossing points. The Commission calls on all Member States to urgently accelerate preparations to ensure the timely implementation of the system…”

A map in the report shows that preparation is still “in progress” in 13 Schengen area countries, including Germany, Norway and Switzerland. “Outstanding issues” still impact Portugal, Malta and Bulgaria.

The state of play for the preparations for EES across EU and Schengen states. Image: European Commission.

There are also reports that EU heavyweight Germany is trying to persuade Brussels to delay.

Matthias Monroy, editor of the German civil rights journal Bürgerrechte & Polizei/CILIP claimed on his website that “the German government is lobbying in Brussels to postpone the date once again, as otherwise the German tests of the EES cannot be completed in full. Other EU countries are also behind schedule, with only eight of them having reported successful integration.”

Even on a French government website it talks of EES being rolled out some time “between the end of 2024 and 2025” rather than stating October 2024.

And according to recent media reports, French airports have been advised to be ready for November 6th, rather than October. 

READ ALSO: EES and Etias – what are the big upcoming travel changes in Europe?

A planned EU app, believed to be essential to the smooth operation of EES because it would allow non-EU visitors to register in advance of travel will not be ready, Gwendoline Cazenave, Managing Director of Eurostar International, the company operating train services via the Channel Tunnel, has told the BBC. The EU however insists the app does not need to be up and running before EES is introduced.

In the UK, which will be heavily impacted by EES due to the fact it is no longer in the EU and so British travellers are no longer EU citizens, the House of Commons European scrutiny committee is conducting an inquiry on the potential disruption the introduction of the EES will cause at the border.

Several respondents have recently raised the alarm about the possible delays the system could cause, especially at the UK-France border, which is used by millions of passengers each year who head to France and other countries across Europe.

Ashford Borough Council in Kent has warned of the possibility of more than 14 hours queues to reach the Port of Dover, which has already been struggling increased checked after Brexit.

The BBC reported that back in March, a P&O Ferries director said the IT system should be delayed again.

Airlines have also complained about the fact pre-travel EES requirements would make last minute bookings impossible.

The Union des Aéroports Français (UAF), which represents airports in France, has simply said more time is needed.

In other words, it would be little surprise if the roll out was delayed again beyond October 2024.

But the Commission spokesperson told The Local that “the timeline for the entry into operation of the EES took into account all the necessary activities to be performed by all relevant stakeholders to ensure a timely entry into operation. 

“The Commission is working very closely with eu-Lisa [the EU agency in charge of the IT system], the Member States and carriers to ensure that everything is ready for the timely and successful launch of the Entry Exit System.

“The roadmap for the delivery of the new IT architecture foresees that the Entry/Exit system will be ready to enter into operation in Autumn 2024.”

New digital border

The EES is a digital system to register travellers from non-EU countries when they cross a border in or out of the Schengen area, the travel-free area. It will be deployed in 29 countries across Europe including 25 EU states plus Norway, Switzerland, Iceland and Liechtenstein. Ireland and Cyprus are the only EU members who won’t apply the EES system.

It doesn’t apply to non-EU nationals who are legally resident in an EU/Schengen area country or those with dual nationality of an EU /Schengen county. The system was designed to increase security and to ensure that non-EU nationals visiting the Schengen area short-term do not stay more than 90 days in any 180-day period.

Instead of having the passport stamped, travellers will have to scan it at self-service kiosks before crossing the border. However, fingerprints and a photo will have to be registered in front of a guard at the first crossing and there are huge concerns the extra time needed could generate long queues in the UK, where there are juxtaposed border checks with the EU.

Preparations are ongoing throughout Europe and some countries have made good progress.

In France, Getlink, the operator of the Channel Tunnel, has recently reported that new EES infrastructure is finished at its French terminal of Coquelles, which will allow travellers to register their biometric data while travelling.

Eurostar is also installing 49 kiosks in stations for the registration of passengers. But the Union des Aéroports Français (UAF), which represents airports in France, said more time is needed.

Exempted

Meanwhile, the Polish government has urged UK citizens who are beneficiaries of the EU-UK Withdrawal Agreement to get a residence permit “in the context of EES/ETIAS”, even though there was not such an obligation to stay legally in Poland post-Brexit.

“Having such a document is beneficial as it will exempt from future Entry/Exit System (EES) registration when crossing external borders and from the need to obtain an ETIAS travel permit in relation to short-term travel to EU/Schengen countries,” the government page says.

This article as published in collaboration with Europe Street news.

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