Thursday, December 15, 2016

‘Brexit’ Talks Could Stretch 10 Years, British Official Warns

LONDON — Struck off the guest list for dinner at a European Union summit, Britain’s prime minister, Theresa May, faced a second embarrassment on Thursday, over warnings that trade talks on quitting the bloc could last a decade, and even then might fail.

Despite the June 23 referendum decision to leave the European Union, Britain remains a full member until the end of negotiations on British exit, known as Brexit, which Mrs. May aims to complete by the spring of 2019.

Britain’s ambiguous, and increasingly isolated, position was underscored by the format for the gathering in Brussels on Thursday in which the other 27 leaders were to debate their own strategy for Brexit over dinner — and without Mrs. May.

The awkwardness Mrs. May faced when she was politely asked to leave the room was compounded by a leaked warning from her own top aide in Brussels, highlighting the mind-numbing complexity of undoing four decades of European integration.

According to the BBC, the advice, given to ministers in October by Ivan Rogers, Britain’s ambassador to the European Union, suggested that completing talks on a new trade relationship with the bloc could take 10 years — and even then might not survive a process of ratification by each of the 27 other nations.

Mrs. May’s office did not deny the substance of the report, but said that the ambassador was reflecting the views of other member countries, not his own assessment of the situation.

Nevertheless, it presents a stark contrast to some British assertions that a new relationship could be struck within the two-year timetable envisaged under the formal process for withdrawal, which Mrs. May intends to begin by the end of March. Even this timetable may be optimistic, because Michel Barnier, one of the European Union’s lead negotiators, has said that in reality, a deal would have to be done within 18 months to allow time for ratification.

In the meantime, Britons remain fiercely divided over Brexit, with supporters encouraged by the fact that the economy has so far not suffered the dire fate predicted by some ahead of the referendum. Their opponents say the negative effects will become visible next year, after being delayed by the post-referendum stimulus injected into the economy by the Bank of England and a competitive edge gained by the depreciation of the pound sterling.

While some of those who favor Brexit fret that they could be cheated of their referendum victory, many businesses worry about the apparent lack of a coherent government strategy, almost six months after the referendum.

Their big fear is that two years of negotiation will fail to yield a trade deal, leading to a “cliff edge” plan in which import and export tariffs are applied with little time to prepare. Continue reading main story

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