Theresa May’s Brexit deal suffers second defeat in UK Parliament

CNBC ^ | 3-12-2019 | Holly Elyatt

[tcrlaf]

The U.K.’s Brexit deal with the EU has been rejected by U.K. lawmakers in another landmark defeat for British Prime Minister Theresa May.

May’s Brexit deal was defeated for the first time back in January but she had hoped last-ditch tweaks to the deal, specifically on the contentious Irish border issue, would help persuade Members of Parliament (MPs) to change their minds.

Her deal was rejected by 149 votes after 242 MPs voted for the deal and 392 MPs voted against the deal. Sterling pared earlier losses against the dollar after the decision to trade 0.2 percent lower at $1.3124.

The deal’s chances were dealt a blow earlier on Tuesday when the government’s chief legal advisor said that the risks to the U.K. from the “Irish backstop” remained unchanged despite recent legal assurances from Brussels — although he did say the risks had been reduced by the tweaks.

The Irish backstop is a mechanism to avoid restoration of the “hard” border between the Republic of Ireland and Northern Ireland that was erased with the 1998 Good Friday peace agreement between London and Dublin. Some U.K. politicians don’t like the fact that the backstop, although intended as a last-resort, would mean the U.K. remaining within a EU customs union for an indefinite amount of time and unable to leave unilaterally, effectively meaning it might be tied to the EU for an unspecified duration.

[Cronos]

You should be mad at Theresa because she's made a right pig's breakfast of it all

The EU IS offering a good deal to the UK:

1. The UK keeps all it's open market privileges until it concludes (or is closed)
   
2. The Irish border remains open as per the Good Friday agreement

What deal were you expecting that is better than that?

The UK has no idea what it wants

to hell with Northern Ireland and it’s complicated “backstop” that is the main sticking point) - May's deal ensures that hte UK upholds what it signed in the 1990s - the Good Friday agreement -- to keep the borders open.

The deadline can only be extended by a couple of months - the EU parliament elections are in May and once that happens, the UK is still in the EU for the next 5 years (so Brexit is over)

An aside but I’d urge President Trump to do a trade deal with the UK as soon as they are out of the EU (if that ever comes to pass). I would hope the Marxist US House wouldn’t stand in the way. -- it's not the US house but US farming lobby that will stand in the way. The UK will not allow American meat or eggs to be imported to the UK. This will block any and all deals

[central_va]

The biggest one is the Western European supply chain. Most products are built across many countries - just as in the US you won't have one factory in Alabama that makes a car from nuts to finished product. These supply chains rely on Just-in-Time delivery. IF the borders are not open, then this model is shot. So the manufacturers will shutter UK factories

Brexit doesn't CLOSE borders! That is total BS. Where is it stated that Brexit embargos all imports from the EU? Do you think we are stupid like gloBULList losers like you? Those "nuts" may be subject to a tariff or not. If they are then that motivates a domestic supplier of "nuts" to come on line.

The only "nut" job around here is you..

[Cronos]

Brexit doesn't CLOSE borders! -- err... yes it does -- didn't you read that?

Managing the cross UK and EU supply chain has been relatively straightforward. Many UK and EU based companies have built up complex intra-EU supply chains, accessing innovations for their business whilst benefiting from there being no tariffs, a low costs in moving goods across borders, and limited border delays. These characteristics may apply if the UK is no longer part of the europe union.

If the UK leaves the custom union then by default there have to be border checks -- or do you think that the UK can freely allow goods that don't pass it's standards?

. Businesses have to be ready for potential new duties on imports. How easy will it be to absorb additional costs? Can preferred specialist suppliers be easily replaced? Does this impact decisions on where key activities - like production - are performed? Will UK-EU distribution models exposed to paying duties more than once?

When the UK stops being a member of the EU, sales of goods between the two will become imports and exports for VAT purposes and UK businesses with pan-European supply chains may also miss out on VAT simplification measures that avoid the need for local VAT registrations.

Supply chain hubs and lead times will increase

------------------------------

Let me explain this simply to you -- No deal Brexit means that the UK is out of the EU customs union, that it no longer follows EU rules and regulations on produce. This means that every item shipped across borders is potentially needed to be inspected.

Let's take a simple example of the automobile manufacturing business. The car industry is the perfect example of a business that has taken full advantage of the Single Market and Customs Union.

They source and manufacture parts and components for use in the manufacture of complete cars from anywhere in the EU without any regulatory hindrance or cost. Almost every part and component fitted to you complete car has made several EU border crossings on the way to becoming a little bit of the entire car.

Following a hard Brexit, crossings either way between the UK and Mainland EU are going to incur an additional cost in Customs charges and a short delay necessitated by checking of the documents and, in a few cases, an inspection of the load carried by the vehicle. The immediate impact will be delays in just-in-time deliveries which could lead to production line stoppages; but the long term affect until a firm agreement can be made between the EU and UK on its long-term trading relationship, is the increase in cost caused both by the Customs charges and the logistical delays.

These will make it more difficult and more expensive to manufacture cars in the UK. Plant stoppages are exactly what Toyota has said will hamper its manufacturing operations in the UK, but Honda has gone a step further in saying that its Swindon plant would be unviable following a hard Brexit. Nissan was the first car company to publicly express concern about Brexit. BMW has also made statements that it could, if necessary, increase production of the Mini in the Netherlands to the detriment of Longbridge; or it could also outsource more work, like the Countryman which is assembled by a partner company in Austria.

there are no British car manufacturers. All high-volume car manufacturers are global companies with headquarters in a particular country. They will all weather the storm, if necessary by relocating activities to other countries.

Japanese plants all over Europe are making cars for the European market. Put a financial and bureaucratic wall between the UK and the rest of the EU will make it more expensive to produce in the UK, so they will shift to an EU country.

you really ought to read :)

[central_va]

The immediate impact will be delays in just-in-time deliveries which could lead to production line stoppages; but the long term affect until a firm agreement can be made between the EU and UK on its long-term trading relationship, is the increase in cost caused both by the Customs charges and the logistical delays.

Coulda shoulda woulda. You are a GloBULList a$$w!pe.

[Cronos]

So, to keep it in simple language for you - most products use parts and components from different areas. Take the car industry - the seats will be made in the Netherlands with leather from cows in Poland, prepared in Spain and fashioned into seat covers in Italy. This is merged with British made plastic chairs with German and Swiss components and the entire car is assembled in France and then sent to the UK for painting. That's just a simplified example.

What happens post Brexit? The borders come up. Even if they are simplified, the UK will either be part of the customs union or not

If not, then customs is needed for every single thing.

If it IS part of the customs union then it invalidates what the UK wanted - it wanted to reject the 4 freedoms (of goods, services, people ad capital)

Is this understandable to you?

Think if Virginia leaves in the same manner as no deal Brexit. Then it needs to be part of the US customs union or not. Brexit wants out.

[Cronos]

I was trying to be nice to your intellectual capabilities.

Let's put it simpler - there will be delays in J-I-T deliveries. It will lead to production line stoppages.

have you any idea how a Just In Time supply chain works?

[central_va]

Hey d!ckh3ad is this understandable to you? The border will not be closed post Brexit like you implied you disingenuous paid globalist hack. You are trying to scare people into thinking that. A TARIFF DOES NOT CLOSE A BORDER. Agree? Even a brainwashed global dolt like you can understand that?

Will there be new a different import duties between the UK and the EU post Brexit? Probably yes. Is it the end of the world hell no. A blip.

[central_va]

Yes, and new suppliers will come on line. Can you grasp that? Let me explain it to you like you are a third grader.

What Free Traitors™ want everyone to believe is that the supply function is static and no new domestic suppliers will EVER come on line. Despite their best efforts brand new factories are still being built in the USA and the UK all the time. The situation is dynamic and not static. With more domestic supply will mean pressure to reduce prices.

The transition is worth regaining sovereignty (in the case of the UK). The POSSIBLE temporary inflation is worth it. The people have spoken. Now it is time for people like you to shut up.

[central_va]

Coulda shoulda woulda

[central_va]

Coulda shoulda woulda

[central_va]

Coulda shoulda woulda

[central_va]

Coulda shoulda woulda

[central_va]

J-I-T

Is that what's running down your chin?

[bert]

There are no free traitors beyond your mindless daily posts. You are an insult to good Americans who are able to meet adversity, pick up and carry on.

[central_va]

Spoken like a true traitor.

[Cletus.D.Yokel]

Brexit, you say?
It's THAT door, over there?

[bert]

So, your boots came without straps to pull your self up with?

[bert]

-——Instead they stuck their noses in the sand——

Actually, we do not know what preparations and contingency plans have been developed by those that matter.

For instance, Siemens, a German company with several factories in the UK. These facilities are integrated into the Siemens whole, including their factories in the USA.

I don’t know about Brit firms but we can think of Ford. Ford makes vehicles and probably exports some to the EU and conversely imports some models from the EU. Ditto the USA and Mexico.

Another company that certainly has plans is Shell operating as Shell UK. Shell UK does not have it’s head in the sand

These and other companies operating behind closed doors have certainly made plans to continue beyond BREXIT.

[Cronos]

Hey you - you haven't really read what the LEAVE wanted, have you? Controllign the borders i.e. with checks on goods is the NUMBER ONE topic for leavers - you haven't read it have you?

the tariff will put huge delays on the border - an end the Just-in-Time supply chain

There will be duties and customs and they will eat into the margins. And the delays will make it no longer worthy

A blip it isn't - the margins are already thin and if they have to pay for 5 different cross-border tariffs, then that cuts the margins

[Cronos]

To make a car takes dozens of cross-border movements. If each gets a tiny tariff on it, it cuts the wafer thin margins.

net results - the car manufacturers will shift work out of the UK