An incriminating House of Lords report has warned that a “no deal” Brexit would be “destructive” to the economy of the United Kingdom by trashing trade across various sectors.
House of Lords EU Committee said that the claim that a “no deal is better than a bad deal” is essentially not true.
The committee which is has Lord Boswell of Aynho as its chairman stated: “Given the overwhelming evidence of the destructive effect of ‘no deal’, the Government’s assertion that ‘no deal is better than a bad deal’ was not helpful.
“‘No deal’ would mean the abrupt cessation of over 40 years of economic, political and legal partnership. It is difficult, if not impossible, to envisage a worse outcome for the United Kingdom.”
In normal trade negotiations, a failure to agree on a deal utterly leaves matters unchanged. However, the committee said that in this instance, it abruptly makes cross-border trade much more difficult.
The committee stated: “It would not just be economically disruptive, but would bring UK-EU cooperation on issues such as counter-terrorism, nuclear safeguards, data exchange and aviation to a sudden halt.”
The peers stated: “An early and comprehensive agreement would, in our view, be the best solution for all sides. But precedent, and the overwhelming weight of evidence suggests that it will not be possible by March 2019 and that negotiations on future relations will need to continue beyond that point.”
“If this is the case, both sides will need a transition period. This will not just be an implementation period, since the agreement on future relations will still be under negotiation, but will begin with a ‘standstill period’, to buy time to finalise that agreement, followed by an implementation or adaptation phase.”
Meanwhile, the chief of Manufacturing NI, Stephen Kelly, informed the Northern Irish Affairs Committee that Northern Ireland could embrace a compromised status that is making the best of regulations of the United Kingdom and the European Union.
Enabling Northern Ireland to become a “bridge,” with a soft border with Ireland and no border with the rest of the United Kingdom, could have it “become one of the most attractive regions in the world in which to invest”, said Kelly.
By contrast, a hard Brexit, “would be a complete and utter disaster” for manufacturers of NI.