Inertia moves things
I came across a new concept today, divergence by inertia. You might think that the UK is still complying with EU rules because it has not diverged from them. But actually it is agreeing and conforming with the EU rules that were in place 2 years ago.
The EU is a proactive organisation, always seeking to improve rules, protect the environment, get rid of dangerous chemicals, etc etc and this matters to the UK too.
What happens when the UK supplies a component that does not reach the new standards or comply with the new rules? It will be sent back unopened. When a sub assembly is sent to the UK and then returned to the EU but having been worked on using a banned chemical it will be rejected.
UK and EU rules will diverge just through UK government inertia, through not being in Brussels, not attending meetings, not getting the emails and not updating its records, rules and regulations.
Gradually UK firms will be cut out from their clients supply chains because they do not know what to do to comply, UK companies will stop exporting because they have to seek out the EU rules and that takes time and effort.
Brexit will therefore continue to damage British firms not because the government is tearing up the rule book but because it is failing to update the rule book.
Economics, trade and Brexit, not necessarily in that order but the dog always comes first.
By Jonty Bloom Media