OPINION:
Last Friday, EU leaders put their signatures to the Withdrawal Agreement that released the U.K., but just days later, Prime Minister Boris Johnson’s government risked a vital U.S. deal by agreeing to one with China’s Huawei technology giant first.
This decision not only has the potential to harm trade, but also national security and information sharing between its key allies.
Government Communications Headquarters (GCHQ) has given the British government full assurances that the areas Huawei will work on will not risk national security, including sensitive sites like nuclear power stations.
So sensitive, the U.K.’s newest one is being funded by China General Nuclear Power group and China National Nuclear Corp. In 2016, Prime Minister Theresa May allowed them to become major investors in Hinkley Point C, a low-carbon and very high cost nuclear facility.
As the U.K. is committed to building more of these, perhaps the Mr. Johnson didn’t want to risk future Chinese investment. He has inherited many agreements made by his Conservative predecessors who were determined to work with the Chinese Communist Party.
Secretary of State Mike Pompeo flew to London to urge the U.K. government to relook at the Huawei deal, and it still has to be voted on by Parliament, with many MPs opposed to it.
And all this, days before the U.K. officially exits the EU at 11 p.m. on Jan. 31. But even that is not all it seems.
The U.K. will still remain part of the EU single market and customs union, and be subject to its laws, until a final deal can be agreed by the end of this year. During this transition period, the U.K. will still be paying into the EU budget, without having any members of the European Parliament, or a commissioner in its law-making body — taxation without representation.
The U.K. government will not want to talk about that too much, as it is intended to buy time to sort out the details of leaving with a deal, and in an orderly manner.
This interim stage is currently due to end on Dec. 31, 2020, either with or without a deal. And that legally-binding date is not likely to be changed, unlike all the others, as Mr. Johnson now has a huge majority.
To make sure the deal is favorable, Nigel Farage has said he will be waiting to launch his new Reform Party if needs be. Yet, without an election on the horizon, it is hard to know what leverage they would have. Although pressure is also coming on the EU.
Several times during the past 12 months, I have written the U.K. should arrange a trade deal with the United States before the EU, “in order to focus minds.” Assuming the Huawei hiccup doesn’t prevent the deal moving forward that is now a real possibility.
Treasury Secretary Steve Mnuchin has spoken of U.S. hopes to seal a trade deal with the U.K., “That’s an absolute priority of President Trump and we expect to complete that with them this year, which we think will be great for them and great for us.”
With the final EU deal not having to be agreed until the end of the year, the race will be on to see who signs one first, and that competitive field also includes Australia and New Zealand.
Of course, this is absolutely the last thing the EU wants as it seeks to keep the U.K. close to EU rules and regulations.
Europe Minister Helen McEntee stated, “There has to be a balance of rights and obligations and a level playing field in the future trading relationship … We need to protect the single market and rights and values that underpin the EU.”
Their main strategy to prevent having a low tax rival on their doorstop was to play hard ball over the future of Northern Ireland.
According to the Good Friday peace agreement, there can be no hard border between the North and South, yet the EU insists there must be a border where the customs union ends.
Mrs. May considered keeping the U.K. within the EU customs union, so no need for a border. Whereas Mr. Johnson’s solution for leaving that union was to put the border in the Irish sea.
This puts Northern Ireland on the EU side and divides one part of the U.K. from another. It has raised concern that it could be a first step to letting the North go, which could also restart the troubles.
And why should the U.K. have to oblige by dividing itself up? Conservative MP, David Davis, has argued that customs checks can be managed efficiently and largely electronically.
If the EU insists on a hard customs border for lorries, perhaps it should be the one to put them up?
• Andrew Davies is a U.K.-based video producer and scriptwriter.
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