The embarrassing role of economists on Brexit

Just when the Brexit talks were beginning to look humiliating for the UK, the position has begun to be reversed. The absurd EU negotiating framework has stretched the patience of the British side to close to breaking point and preparations are at last being made for the possibility of no deal with the EU. Australians with decades of experience in trade negotiations with the EU tell us that the EU always bargains ferociously and that the only sensible response is a tough one. A negotiating bottom-line of no-deal should have been the British position from the start but going along with the EU’s self-imposed constraints has at least exposed just how difficult the EU can be. The new note of toughness from the UK is producing results, and may have influences Michel Barnier’s request to the EU for more flexibility to begin some talks on trade.

None of the EU’s three negotiating priorities make much sense.