The Guardian - 21.08.2019

(Steven Felgate) #1

Section:GDN 1N PaGe:9 Edition Date:190821 Edition:01 Zone: Sent at 20/8/2019 20:34 cYanmaGentaYellowbl


Wednesday 21 Au g u st 2019 The Guardian •

9
▼ Angie Wooding and Beth Kiteley,
right, staff of the gift shop Unikorn,
whose owners mainly fear a recession
PHOTOGRAPH: SEAN SMITH/GUARDIAN

‘The backstop is
an insurance to
avoid a hard border
unless and until an
alernative is found’

Donald Tusk
European council president
Frances Perraudin

A


li Ahmed, pointing
across his display of
fruit and vegetables
at his greengrocer’s
shop in the centre of
Stevenage , says: “You
see the melons over there? They
come from Spain. Most of the apples
come from Poland. The tomatoes are
from Holland.”
Ahmed, who has been running
Star Groceries for about fi ve years,
gets most of his fresh produce from
New Spitalfi elds market, in London.
“We’ve spoken to the wholesaler and
[if there is a no-deal Brexit] they say
it’s going to be very, very, very hard.
But we have no idea what’s going
to happen. I don’t know what I can
do. You can’t stock up on fresh fruit
and veg, so I’m just hoping they get a
[Brexit] deal.
“When we are in the English
season we bring the produce from
farms here, but the English season is
short. I couldn’t stock my shop from
just English produce. I’d only be
working for part of the year.”
Jeremy Corbyn yesterday visited
the Hertfordshire town to speak
to small-business owners about
the possible impact of a no-deal
Brexit. He said those whom he had
met were “appalled” at the idea of
a no-deal Brexit. “I think the prime
minister should go and talk to them.”
Ahmed seems to agree with the
Labour leader. “I’ve got lots of
friends who own small businesses

and they’re not happy at all. They’re
not happy with a no-deal Brexit. It’s
going to aff ect almost every small
business in the UK.”
Nearby is LC Beds, Furniture and
Carpets, one of a chain of four shops
in Hertfordshire. The manager, Naz
Miah, says this year has been the
toughest of the 10 years the business
has existed. The fi rm had an initial
dip in sales in 2016 after the EU
referendum, then a slight recovery,
but was now experiencing another
fall. Miah says they are seeing
a decline in “bread and butter”
business, such as new home-owners
looking to furnish properties, due to
the housing market slowdown.
While most of the beds they sell
come from the UK, a signifi cant
chunk of the business is the sale
of large wardrobes made in
Germany. At the beginning of the
year deliveries had arrived very
slowly because businesses were
over-ordering and the manufacturer
could not keep up with demand.
“We’ve been looking for a UK
option for about two years because
it means you get them more quickly
and it’s good to go local,” he says.
“Maybe a company will pop up after
Brexit but it’ll take time because
Germany has factories with the right
machinery and infrastructure .”
At Limited Edition Comix, around
the corner, Wesley Hills says the
world of comic books is separate
from the everyday economy. “ It’s
a collectors’ market. If they want it
they will pay for it.”
One thing that has aff ected his
business is the exchange rate with
the dollar, which has made imports
more expensive, though comic
books are more popular than ever.
Also relatively unconcerned was
Sapphia Nicholson, whose family
runs the Unikorn gift shop and
piercing studio. “Most of our stock
is from the UK so we’re only really
worried about the economy going
into recession and people not having
enough money to spend in our shop.
We usually bulk order twice a year so
we’re just hoping it improves by the
time we put in the next order. ”
Naseer Saeed, who has run Fone
+ PC Fix for about fi ve years, says
his Southall wholesaler thinks that
prices might rise. “At the end of the
day that means we have to charge
customers more. Our rents and
things like that aren’t falling .”
As for the Brexit speculation, he
seemed fatigued. “It’s all been going
on for a long, long, time ... In the end
something will happen and we can’t
stop that .”

Stevenage


Waiting and


guessing, the


anxiety grows


▲ Wesley Hills, manager of the shop
Limited Edition, which sells comics

 Continued from page 1

Johnson heads to


Europe after rebuff


over Irish backstop


visits to Paris and Berlin, he would
have been well advised against writing
this letter.”
Tusk, who is also expected to meet
Johnson this weekend, wrote: “The
backstop is an insurance to avoid a
hard border on the island of Ireland
unless and until an alternative is
found. Those against the backstop and
not proposing realistic alternatives in
fact support re-establishing a border.
Even if they do not admit it.”
In a sign of the EU’s carefully co or-
dinated response, the European
commission issued a statement min-
utes later saying it shared Tusk’s view.
A spokeswoman for the commis-
sion welcomed the UK government’s
“engagement and commitment to
an orderly withdrawal” while mak-
ing clear its objections. “We also note
that the letter does not provide a legal
operational solution to prevent the
return of a hard border. It does not
set out what any alternative arrange-
ments could be and in fact it recognises
that there is no guarantee that such
arrangements will be in place by the
end of the transitional period.”
Johnson admitted the EU’s posi-
tion was “a bit negative” but suggested
Brussels must acknowledge the deal
had been summarily rejected by par-
liament. “I saw what Donald Tusk had
to say, and it wasn’t redolent of a sense
of optimism,” he said. “But I think,
actually, we will get there. I think
there’s a real sense that something
needs to be done with this backstop.”
He said the UK had no intention of
introducing new checks or infrastruc-
ture at the Northern Irish border. “It’s a

bit of a paradox because it is the other
side, a bit odd, the other side of the
argument, the EU, who seem to think
it might be necessary to have checks
for them to preserve the integrity of
the single market,” he said.
Johnson had dashed any prospect
of an early compromise in a letter on
Monday when he called on the EU to
scrap the backstop, which he called
anti-democratic and “ inconsistent
with the sovereignty of the UK as a
state”. The letter was addressed to
Tusk, with copies sent to EU27 leaders
and the head of the European commis-
sion , Jean-Claude Juncker.
As the EU made its first public
statements, diplomats from the 27
countries were sent an analysis that
described key arguments in Johnson’s
letter as incorrect and misleading.
The internal document seen by the
Guardian states it was “incorrect” to

suggest the people of Northern Ireland
would have no infl uence over EU laws
that applied to them, pointing to pro-
visions in the Brexit agreement.
Officials had already strongly
rejected Johnson’s claim that the back-
stop was anti-democratic, pointing to
the fact Northern Ireland had voted
to remain in the EU and non-unionist
parties were in favour of the backstop.
Johnson’s claim that it would be
possible for two separate legal and
economic jurisdictions to exist on the
island of Ireland with an open border
was judged “misleading” as “EU law
provides the common framework
needed to enable frictionless trade
between member states today”.
While the EU has said it is ready to
look at alternative arrangements to the
backstop , offi cials have said no such
options exist anywhere in the world.
Neale Richmond , an Irish senator,
said the claim that the backstop posed
a threat to the Good Friday agreement
was “very disappointing language”.
“The negotiations ended in Novem-
ber,” he told BBC Radio 4. “The British
government in good faith agreed the
withdrawal agreement. And the back-
stop isn’t impossible to get out of ; that
is simply misleading. However, it can-
not be unilaterally exited by one state.
What’s the point of the backstop if one
side can simply just rip it up?”
He ruled out a time limit on the
backstop. “It is an insurance policy
to protect a very fragile peace deal,
therefore it needs the buy-in of both
sides, because both the British and
Irish government are co-guarantors
of that Good Friday agreement.”
An Irish government source played
down the signifi cance of Johnson’s let-
ter, calling it a “disappointing” rehash
of London’s demand to renegotiate the
withdrawal deal – a demand Dublin
and the EU would continue to reject.

Additional reporting: Rory Carroll
Dublin Philip Oltermann Berlin

PM’s letter to Tusk
What does it mean?

Is there anything new in Johnson’s
letter to Tusk?
Boris Johnson is repeating his
familiar demand for the EU to scrap
the backstop – the mechanism to
stop a hard border on the island of
Ireland by potentially keeping the
UK in a customs union.
But he lays out three specifi c
reasons why the UK believes the
backstop is bad. First, that it is
antidemocratic because the UK
may not be able to exit a customs
union and Northern Ireland could
be kept in some areas of regulatory
alignment without a say over them.
Second, a new argument that it
defeats a key aim of the leave
campaign – regulatory divergence
from the EU – which departs from
Theresa May’s position. And third,
another new argument that the
backstop actually undermines the
Good Friday agreement , rather than
protecting the peace settlement as
the EU claims.
Another new aspect of the letter
is that Johnson proposes some
vague steps for a way forward. He
demands new alternative customs
arrangements to be put in place
in the two years of transition,
then off ers the possibility of

“commitments” to prevent a hard
border instead of the backstop.

How will the EU react?
At fi rst, there were negative noises
from EU sources saying Johnson
was trying to move the goalposts.
The Irish taoiseach, Leo Varadkar,
has said changing the backstop
by reopening the withdrawal
agreement will not be possible.
And then the verdict came in from
Donald Tusk, the outgoing European
council president, who poured cold
water on the idea that Johnson’s
letter could lead to the backstop
being revisited.
“The backstop is an insurance to
avoid a hard border on the island
of Ireland unless and until an
alternative is found. Those against
the backstop and not proposing
realistic alternatives in fact support
reestablishing a border. Even if they
do not admit it,” Tusk tweeted.
Johnson is due to meet the
German chancellor, Angela Merkel,
today and the French president,
Emmanuel Macron, tomorrow, so
there will be more of an idea how
his ideas have gone down with EU
leaders then. Most probable is that
they will criticise the ideas for being

so vague as to be meaningless and
demand a more specifi c plan.

Is Johnson really serious about a
renegotiation?
There are some hints in the letter
that Johnson m ay still be open
to compromise. By setting his
demands so high – total abolition
of the backstop – there could be
a remote chance there will be a
landing zone where both sides give
a little and agree to rebadge the
backstop with another name and a
time limit, allowing each to declare
victory and no -deal averted.

Could it be yet another bluff?
Another strong theory is that
Johnson does not really believe
the EU will back down because his
demands are too excessive. This is
the charge levelled at him by the
former chancellor Philip Hammond
and 19 Tory colleagues. If this is
the case, the purpose of the letter
appears designed to persuade the
public that he is at least trying to
get a deal. He would go on to paint
the EU as intransigent in an election
campaign and try to blame the bloc
for forcing the UK into a no-deal
Brexit. Rowena Mason

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