What is clear is that the U.K. will no longer be a member of the single market or customs union. What is not clear is the future of the four freedoms: movement of people, capital, goods and services
Brexit: the breakup begins
The U.K. has formally started the process of leaving the EU.
British Prime Minister Theresa May’s official notification to European Council President Donald Tusk of the U.K.’s withdrawal starts the two-year clock on negotiations to determine the nature of the separation, and the future relationship between the EU and U.K.
The government will bring in the Great Repeal Bill to transfer EU into domestic legislation. Debate continues within the U.K. and among EU member states and institutions over the form of the separation.
What is clear is that the U.K. will no longer be a member of the single market or customs union. What is not clear is the future of the four freedoms: movement of people, capital, goods and services – or the nature of co-operation in areas such as counterterrorism, combating crime or tackling climate change. And EU leaders have said negotiations on a future trade agreement cannot start until the parameters of the withdrawal have progressed.
Scotland: the referendum
The Scottish Parliament approved a motion for a further referendum on independence, in spring 2019 (around the time the U.K. leaves the EU). Scottish National Party (SNP) leader Nicola Sturgeon argued that departure from the EU constitutes a “material change” in circumstances since the last independence referendum in September 2014.
Whilst the motion puts political pressure on the U.K. government, they are not bound to accede. A majority of Scots voted to remain in the EU, yet Scottish views on the combination of issues are complex. If Scotland became independent it would need to apply to join the EU in its own right – a lengthy process. And whilst doing so might help it to achieve one single market, leaving the U.K. would remove another.
U.K.: the economy
The U.K. economy has fared better than expected since the Brexit vote, with 2016 growth revised upward to 2%, and the Financial Times Stock Exchange 100 and 250 rising 16% and 11%, respectively (see also previous Atlantic Crossings). Yet, more recently, there have been some signs of a slowdown, with business investment down 1% and growth slowing in property prices and the services sector.
Sport: the Rugby Sevens
Vancouver recently hosted its second successful annual Rugby Sevens at BC Place, and this year was made even more special by two events: England winning the tournament (I had to say it) and a pre-tournament gathering hosted by the British Canadian Business Association. The reception was supported by HSBC, Integro, Pan Pacific and the U.K. Consulate General, and brought together 100 B.C. and U.K. businesses, along with special guests Bill Cooper, CEO of the Canada Sevens, and Ben Ryan, former coach of both the England and Fijian sevens teams.
Business: the trade show
B.C. companies had a successful Q4 at major trade shows and events in Europe:
•Taste of Canada in London: a bespoke event organized by Trade and Invest BC’s Europe office and the Canadian High Commission that attracted 12 B.C. companies and numerous guests including buyers. Deals already signed are worth more than $800,000 with more in the pipeline.
•Fruit Logistica in Berlin: the B.C. office partnered with the Canadian Embassy to host a united stand, supported by the B.C. Ministry of Agriculture’s Growing Forward 2 fund, which facilitated business-to-business (B2B) connections and deals, initially more than $750,000.
•Mobile World Congress in Barcelona: showcased 25 B.C. companies, with more than 400 introductions and B2B meetings facilitated, and confirmed deals still being recorded.
•Ocean Business 2017 (April 4-6 ) in Southampton: had five B.C. companies – AML Oceanographic, AXYS Technologies Inc., Imagenex, Ping and Rockland Scientific – exhibiting. OceanWorks and PBES also attended, the latter fresh from keynote speeches at the Royal Institution of Naval Architects Wind Farm Support Vessels Conference and Passenger Ship Safety Conference.
Rupert Potter is a U.K.-based writer, speaker and diplomat who has worked in Jordan, Bahrain, Sweden and Canada. His career has included work with the U.K. government. He currently runs an independent consultancy.
