Skip to main content

They know what they have to do...they just don't want to do it!

UK Civil servants are fully aware of what is needed to get a trade deal out of the Americans.  The problem, is they don't like it.  If you think the deal the UK had while it was in Europe was bad, the deal on the table from the Americans is far worse.  The Americans have a limited sense of humour, they still like the Brits, but at the end of the day, if we continue to dick around they will offer the deal to someone else, France for example.

The UK has a lot to offer, a decent army and navy, good security services, and a foothold in Europe.  All things that Americans want, and generally already have access to via the security agreement.  The UK on the other hand wants a preferential trade agreement with the Americans, and the Americans agree, as long as the treatment is pro-USA.

UK manufacturing is a direct competitor to the US, we operate in the same wage and skills bracket, so that is of limited interest, agriculture which is still highly protected in the UK is something that the US would like to have open, and a deal on the production of certain raw inputs.

In short, the UK will have to give the same kind of deal that the Japanese gave to the Americans.  

Word is that the UK government has made some overture to Germany to "come back home" and that Germans said two things, no and fuck no.  Part of the problem is that Germany has its own issues to resolve, but more importantly, the numbers are not there, to return to the fold, all 29 members have to agree, and many of the bigger players were more than happy when we decamped.  

The only game in town is the Americans, whoever wins the next elections (Hello Labour) will have to make a deal.  60% of all UK energy is from the US.  If the Americans play hardball, we"re screwed.  So far the Ostrich strategy has worked well, if the UK government is not careful it will be too late, and by the time we get our head out of the sand, someone else will have the deal.

But then never underestimate the ability of Whitehall to snatch defeat from the jaws of victory -- it's a long-standing tradition.

Comments

Popular posts from this blog

Ok so I lied...a little (revised)

When we began looking at farming in 2013/14 as something we both wanted to do as a "second career" we invested time and money to understand what sector of farming was profitable.  A few things emerged, First, high-quality, source-proven, organic farm products consistently have much higher profit margins.  Secondly, transformation accounted for nearly 80% of total profits, and production and distribution accounted for 20% of profits: Farmers and retailers have low profit margins and the middle bits make all the money. A profitable farm operation needs to be involved in the transformation of its produce.  The low-hanging fruits: cheese and butter.  Milk, generates a profit margin of 5% to 8%, depending on milk quality.  Transformed into cheese and butter, and the profit margin rises to 40% (Taking into account all costs).  Second:  20% of a steer carcass is ground beef quality.  The price is low, because (a) a high percentage of the carcass, and (b) ground beef requires process

21st century milk parlour

When we first looked at building our farm in 2018, we made a few money-saving decisions, the most important is that we purchased our milk herd from a retiring farmer and we also purchased his milking parlour equipment.  It was the right decision at the time.  The equipment dates from around 2004/05 and was perfectly serviceable, our installers replaced some tubing but otherwise, the milking parlour was in good shape.  It is a mature technology. Now, we are building a brand new milk parlour because our milking cows are moving from the old farm to the new farm.  So we are looking at brand new equipment this time because, after 20 years of daily service, the old cattle parlour's systems need to be replaced.  Fear not it will not be destroyed instead good chunks will end up on Facebook's marketplace and be sold to other farmers for spare parts or expansion of their current systems. All our cattle are chipped, nothing unusual there, we have sensors throughout the farm, and our milki

So we sold surplus electricity one time last summer...(Update)

I guess that we will be buying an additional tank for our methane after all.   Over the past few months, we've had several electricity utilities/distributors which operate in our region come to the farm to "inspect our power plant facilities, to ensure they conform to their requirements".  This is entirely my fault.  Last summer we were accumulating too much methane for our tankage capacity, and so instead of selling the excess gas, that would have cost us some money, we (and I mean me) decided to produce excess electricity and sell it to the grid.  Because of all the rules and regulations, we had to specify our overall capacity and timing for the sale of electricity (our capacity is almost 200 Kw) which is a lot but more importantly, it's available 24/7, because it's gas powered.  It should be noted that the two generators are large because we burn methane and smaller generators are difficult to adapt to burn unconventional gas, plus they are advanced and can &qu