If Brexit must be, make it shipping-friendly

SECTIONS of the popular press are painting it as akin to the successful culmination of a decades-long national liberation struggle; more sober counsels are generally somewhat sombre.

But whichever way you slice it, Britain on Wednesday formally triggered Article 50 of the Lisbon Treaty, thereby tendering two years’ formal notice of its intention to terminate membership of the European Union.

Barring unforeseen developments — and admittedly there have been multiple unforeseen developments in politics of late — the UK will in 24 months become the first country ever to quit the world’s largest trading bloc.

Lloyd’s List said at the time of the referendum last June, which committed the government to this course of action, that decampment will ultimately reveal itself as a retrograde step.

Nothing that has happened since has given us reason to reconsider or reassess. Indeed, should the consequences lead to the break-up of Britain and the return of a hard border to Ireland, the fallout will prove many times more grim than even the most ardent Remainer could have anticipated.

The charitable assumption — and worryingly, perhaps now the best hope? — must be that Brexit will indeed one day deliver the thorough-going and stupendously felicitous benefits its advocates have long promised. While we remain intellectually unpersuaded of that proposition, a verdict will only be possible in five, 10, or perhaps even 20-30 years from now.

However, as the popular American political aphorism has, the voters have spoken. What is important now is that this country negotiates the best possible departure terms, for citizens and businesses alike. And here, shipping appears to have cause for concern.

A leaked government document obtained by The Times in February ranked UK industries by how much assistance they are likely to be accorded during the Article 50 process, listing them as ‘high priority’, ‘medium priority’ and ‘low priority’. Do not bother asking to which category shipping was assigned; it did not even make the list. Thanks, guys.

So while we know and accept that we do not occupy any considerable proportion of Prime Minister Theresa May’s bandwidth on this score, might we have the temerity to voice our vital interests here?

First, Brexit needs to be shipping-friendly on the matter of trade. Some 44\% of current UK trade is with the EU, and the vast majority of it spends at least some time on a ship. Mrs May has explicitly ruled out continued membership of the single market, and made clear that she is seeking to replace it with the best possible bespoke free trade agreement.

For the future prosperity of UK shipping — not to mention the future prosperity of UK residents — this must top the list of key deliverables. In particular, cabotage rights for UK owners must not be lost.

Second, Brexit needs to be shipping-friendly from the viewpoint of insurance and other white-collar shipping services. Concretely, it is essential that passporting rights for Lloyd’s insurance and other marine insurance segments be secured.

Perhaps most essential of all, Brexit needs to be shipping-friendly when it comes to customs clearance. The potential denouement of falling at this hurdle was graphically outlined in a recent panel discussion at Westminster, led by ports bosses themselves.

The spectre of Britain’s ports coming to a standstill after the restoration of the bad old pre-Maastricht days is both real and frightening. Let us not go there, because many of us will remember that the T-shirt is not a good look.

Perhaps the nightmare can best be averted by upholding membership of the EU customs union, which is open to non-members. Failing that, customs clearance must be as close to frictionless as is humanly possible.

After the hand delivery of the Article 50 letter to European Council president Donald Tusk, so conveniently timed for the midday news broadcasts, matters are now in the hands of the UK’s negotiating team in Brussels. Let them avoid a crash-and-burn Brexit, at all costs.

 

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