Thursday 4 April 2019

Your guide to Brexit jargon - BBC


Your guide to Brexit jargon


Withdrawal agreement

Theresa May has agreed a deal with the EU on the terms of the UK's departure. It does not determine the UK-EU future relationship. It does include how much money the UK must pay to the EU as a settlement, details of the transition period, and citizens' rights. It also covers the so-called "backstop", which ensures that no hard border exists between Northern Ireland and the Republic of Ireland after Brexit even if there's no deal on the future relationship in place by the end of the transition period.

WTO rules

If countries don't have free-trade agreements, they usually trade with each other under rules set by the World Trade Organization. Each country sets tariffs - or taxes - on goods entering. For example, cars passing from non-EU countries to the EU are charged at 10% of their value. But tariffs on some agricultural products are much higher - dairy averages more than 35%. If the UK chooses to put no tariffs on goods from the EU, it must also have no tariffs on goods from every WTO member.

No deal

A no-deal Brexit would mean the UK leaving the European Union and cutting ties immediately, with no agreement at all in place. If MPs do not approve Theresa May's deal, and there is no alternative deal or move to delay or stop Brexit, the UK will leave with no deal on 29 March. The UK would follow World Trade Organization rules to trade with the EU and other countries, while trying to negotiate free-trade deals.

Backstop plan

Currently, there are no border posts, physical barriers or checks on people or goods crossing the border between Northern Ireland and the Republic of Ireland. The backstop is a measure in the withdrawal agreement designed to ensure that continues after the UK leaves the EU. It comes into effect only if the deal deciding the future relationship between the UK and EU is not agreed by the end of the transition period (31 December 2020). Until the deal on the future relationship is done, the backstop would keep the UK effectively inside the EU's customs union but with Northern Ireland also conforming to some rules of the single market. Critics say a different status for Northern Ireland could threaten the existence of the United Kingdom and fear that the backstop could become permanent.

Customs union

A trade agreement under which two or more countries do not put tariffs (taxes) on goods coming in from other countries in the union. The countries also decide to set the same tariff on goods entering from outside the union. The EU customs union includes EU member states and some small non-EU members and forbids members from negotiating trade agreements separately from the EU. Instead trade agreements are negotiated collectively.

Irish border

The border between Northern Ireland and the Republic of Ireland. After Brexit, it will become the only land border between the UK and the European Union.

Single market

A system that enables goods, services, people and capital (money) to move between all 28 EU member states, as well as Iceland, Norway, Liechtenstein and Switzerland. Countries in the single market apply many common rules and standards. A UK company can sell its product (goods) in Portugal as easily as it can in Portsmouth, bring back the cash (capital), offer maintenance (services) and despatch a repair team (people). 

Free trade agreement

A deal between countries to reduce, but not necessarily eliminate, trade barriers. These barriers include import or export taxes (tariffs), quotas or licences that limit imports, and differing regulations on things such as safety or hygiene or labelling. The aim is increase trade in goods but also services.

Canada model

Canada has a free trade deal with the EU known as the Comprehensive Economic and Trade Agreement (CETA). Under the deal, most imported goods are not taxed, although there are some additional customs checks. There are some limits, or quotas, on the amount of certain food products like meat and cereals that can be imported. Services, like banking, are much more restricted. Canada does not contribute to the EU budget and the principle of free movement does not apply, so Canadians are not free to live and work in the EU.

Canada plus

Some people in favour of leaving the EU have campaigned for the Canada plus or Canada plus plus model. Under the Canada deal, most imported goods are not taxed, although there are some additional customs checks. There are some limits, or quotas, on the amount of certain food products like meat and cereals that can be imported. Services, like banking, are much more restricted. The UK would like all the benefits of the Canada deal, plus greater access to the EU for its financial institutions, as well as fewer restrictions on food products and an agreement to recognise the same standards on things like food production to avoid the need for border checks.

Norway model

The UK would remain in the EU single market, able to trade freely, but in return it would have to allow free movement of people - which has been a key sticking point for many in the Brexit debate who want to be able to control immigration from the EU. The UK would also have to make a contribution to the EU budget - smaller than it currently makes - and abide by many of the EU's rules.

Four freedoms

The free movement of goods, capital, services and people in the EU's single market.

Free movement

One of the four freedoms associated with the single market is free movement of people. This lets EU citizens travel, live, study and work in any member country. There can be no discrimination in access to public services and benefits.

Hard Brexit

A hard Brexit would be one where few of the existing ties between the UK and the EU were retained. The UK would give up membership of the EU's single market and its customs union, instead setting up its own trade deals and rules. It is a phrase often used by critics of Brexit who think it will harm the UK economy.

Soft Brexit

Leaving the European Union but staying as closely aligned to the EU as possible. This could mean keeping the UK in the single market or the customs union or both. It could involve free movement of people continuing. EU citizens would retain the right to settle and work in the UK and have access to public services and benefits; UK citizens would retain the same rights in the EU.

Eurosceptic

Someone who is opposed to the European Union having too much control, because they think it compromises the power of individual countries to make rules and decide their own destiny. Eurosceptics include those who want to return powers from the EU to member states and those who want their country to leave the EU altogether."

EU referendum

A national vote held on 23 June 2016 to decide whether the UK should leave or remain in the European Union. It was decided on a simple majority and the Leave campaign won by 52% to 48%.

Indicative vote

Indicative votes are where MPs vote on a series of options designed to test the will of Parliament to see what, if anything, would command a majority. They could be used to test support in the House of Commons for a range of different Brexit outcomes.

Meaningful vote

The government said Parliament would be given a 'meaningful vote' on the withdrawal deal negotiated by Theresa May with the European Union. This took place on 15 January 2019 and MPs voted by 432 to 202 to reject the deal. Parliament still needs to approve a deal before it can be implemented.

Mandate

The authority to carry out policy. In relation to Brexit it often refers to the referendum result giving a mandate to the government to take Britain out of the European Union.

Chequers plan

This plan for Brexit was agreed by the Cabinet at the Prime Minister's country residence, Chequers, in July 2018. It proposed tax or tariff-free trade with the EU, while leaving the UK free to pursue trade deals outside the EU. Under the plan, the UK would collect tariffs on the EU's behalf for any goods entering the country but destined to be sent on to EU countries. Because EU tariffs had been collected, there would not need to be a separate border between Northern Ireland and the Republic. But the UK would have to follow EU rules, "the common rule book", on things like food standards to avoid unnecessary border hold-ups. The plan also proposed ending the free movement of people, giving back the UK control over immigration rules. Former Brexit secretary David Davis and former foreign secretary Boris Johnson both resigned their posts over the Chequers plan because they believed it meant the UK would still be too closely tied to the EU.

Malthouse compromise

The Malthouse compromise is named after the housing minister Kit Malthouse. Its supporters are mostly Conservative Leavers and Remainers. The plan proposes two options. Under the first, the prime minister would try to renegotiate the backstop plan to replace it with a free trade agreement - and an extended transition period until December 2021. The second option would apply if the attempted renegotiation failed. In this scenario the UK would leave the European Union without a formal withdrawal agreement, but before leaving, the UK would try to negotiate a three year transition with the EU to prepare for a no deal outcome. During that time the UK would continue to contribute financially to the EU.

Political declaration

Document which sets out proposals for how the UK's long term future relationship with the EU will work after Brexit. The political declaration is not legally binding but will be worked up into a full agreement during the transition period.

Remoaners

A derogatory term meaning a person who complains about Britain leaving European Union and/or the outcome of the Brexit referendum.

Schengen area

This is reputed to be the largest free travel area in the world. It is made up of 26 European states that have abolished passport controls at their mutual borders so people can travel freely. Some European Union member states, including the UK, are not in the Schengen area. Some countries that are not members of the European Union, like Norway and Iceland, are in the Schengen area.

MEP

Member of the European Parliament. There are currently 73 UK MEPs, representing 12 electoral regions made up of the nations and regions of the UK. Elections take place every five years, the next vote is due to be held in 2019, but will not take place in the UK if Brexit has happened.

Managed no deal

Also sometimes called a negotiated no deal. View being promoted by some Brexiteers who want to allay fears about what would happen if the UK left the EU without a deal. They are proposing a transition period during which time the UK would negotiate a free-trade deal as a third country. The UK could also strike a number of mini deals to avert chaos in sectors of the economy. Critics say a transition or implementation period is a key component of the Withdrawal Agreement and if that has been rejected the UK would immediately be subject to WTO rules and have to rely on the goodwill of the EU to resolve any problems.

Transition period

If Theresa May's deal was accepted, this period would last 21 months from Brexit day, on 29 March 2019, to 31 December 2020. It could be extended by up to two years if both the UK and the EU wanted. The transition is intended to allow time for the UK and EU to agree their future relationship. The UK would have no say in the making of new EU laws during the transition but would have to follow all EU rules, including freedom of movement.

White Paper

A white paper is a report produced by the government outlining how it is going to approach a particular issue. The government published a white paper on the UK's future relationship with the EU in July 2018 in which it spelled out its proposals for free trade with Europe, new arrangements for financial services, like banking, as well as plans to allow trade to continue to flow between Ireland and Northern Ireland.

Frictionless trade

Trying to do business between the UK and the European Union with the minimum of tariffs, quotas, customs checks and other obstructions.