• Baker McKenzie Brexit Report received extensive coverage according to the Sunday Times: “There was extensive global, regional and sectoral coverage this week on Baker McKenzie’s report, ‘The realities of trade after Brexit’, which found that exports to the EU from key sectors of the British economy will drop by 40% without a Brexit trade deal. The automotive, consumer products, healthcare and technology sectors will collectively lose £17bn in European sales if Britain defaults to World Trade Organisation rules to govern its trade with the Continent. The losses from a hard Brexit would equate to nearly 20% of worldwide exports for the four industries. “We have heard a lot about how much Europe exports to the UK — for example, in the automotive sector. But the EU exports a lot more broadly to a whole host of other markets, and consequently it is far less dependent on the UK than the UK is on it,” said Ross Denton.

 

  • The US has objected to a deal between the UK and EU to divide agricultural import quotas, one of Theresa May’s key plans for a smooth Brexit. British and European negotiators had been working on an agreement to split tariff rate quotas, which would allow some agricultural produce to enter the EU from countries outside of the union. A preliminary deal was drawn up between London and Brussels over how to split the EU’s existing tariff rate quotas – agreed under the World Trade Organisation – but it was rejected by the US, Canada, New Zealand, Argentina, Uruguay, Brazil and Thailand in a co-signed letter. (The Independent)
  • A top official at the Bank of England has warned the government it has less than 12 weeks to agree a transition deal with the EU to prevent City firms starting to move jobs and business out of the UK. Sam Woods, a deputy governor at the Bank, said City firms would activate their Brexit contingency plans if there was no deal on a transition period by Christmas which would mitigate the impact of a hard Brexit in March 2019. Woods also repeated his warning of the strain being put on the Bank’s ability to police the financial sector as a result of the changes firms needed to make. (The Guardian)
  • The two men in charge of Britain’s Brexit negotiations are battling each other for staff and resources, in a further sign of instability within the UK team days before the next round of talks with Brussels is due to begin. Olly Robbins, who left his job as head of the Department for Exiting the EU last month to set up a rival “Europe Unit” in Downing Street, is openly trying to poach his former colleagues from David Davis, the Brexit secretary. In an email to staff at Dexeu and UkRep, Britain’s diplomatic mission in Brussels, Mr Robbins, 42, described the work of the Europe unit and called for “expressions of interest” to join him. (The FT)