As negotiations on a Brexit deal between the UK and EU go to the wire, Britain’s Conservative government has talked a lot about one of the possible outcomes being an “Australia-style deal”.
Earlier in the year, the focus was on a “Canada-style deal”, which is a genuine trade agreement that indeed removes plenty of tariffs and eases quotas, and contains mutual recognition of standards and qualifications. This appealed to many, including those in the "Remain" camp who had reluctantly concluded that Brexit was, by then, unstoppable. For firstly, Canada and Europe's Comprehensive Economic and Trade Agreement is an accord of substance. And secondly, who doesn’t like liberal, tolerant Canada, with its good record on safety and ethics, and historically strong welfare programmes?
After a while, however, it became clear that such a deal could not be hammered out between Brussels and London. It was then that Australia became the favoured model. Many have pointed out that as Canberra does not in fact have a free trade agreement with the EU – just a few specific arrangements – “Australia-style deal” is pretty much a euphemism for “no deal” and World Trade Organisation status. The UK’s Boris Johnson, tweeted the former Swedish prime minister Carl Bildt, “probably thinks it sounds better like that".
Pro Brexit supporters gather for the Brexit Day celebration party hosted by Leave Means Leave at Parliament Square on Friday. Getty Images
Thousands gathered in Parliament Square to mark Britain's departure from the EU. Reuters
Some Brexit supporters dressed up for the celebrations. Getty Images
Crowds counted down the hours and then the minutes until the Brexit hour at 11pm local time. Reuters
Britain officially left the EU after a debilitating political period that has bitterly divided the nation since the 2016 referendum. AP
Britain ended 47 years of EU membership on Friday. AFP
Brexit Party leader Nigel Farage speaks to the media before addressing crowds in Parliament Square. Reuters
This may be true. Critics such Alastair Campbell, who was once a strategist for former UK prime minister Tony Blair, have seized on this and said that “an ‘Australia-style’ exit might as well be Namibia or Zimbabwe. It’s just that Australia sounds better because we tend to like Aussies".
Supporters of Mr Johnson could counter that it is perfectly reasonable to frame the possible terms of Britain’s new relationship with the EU in a way that is easily understandable: by comparing them to those enjoyed by a successful, developed nation with which the UK is familiar, and with which it has strong historical, defence, cultural and familial ties.
If Mr Campbell concedes that this comparison indeed resonates, it should be pointed out that it does so particularly strongly in Britain’s Conservative party. Mr Johnson himself spent a year as a teaching assistant in Australia in 1983. When he won the London mayoral contest in 2008, much credit was given to his Australian strategist, Lynton Crosby, who also masterminded David Cameron’s victory in the 2015 general election. A Crosby protege, Isaac Levido, ran the 2019 election campaign that saw the Conservatives returned to power again, this time with an 80-seat majority. Both Mr Crosby, known as “the lizard of Oz”, and Mr Levido had previously helped Conservative premiers to electoral victories in Australia.
Tony Abbott, the former Australian prime minister, is currently a trade adviser to the UK government. EPA
British Prime Minister Boris Johnson, right, and his Australian counterpart Scott Morrison are seeking to bring their nations even closer together. Getty Images
Their toughness and discipline on messaging is matched by the unabashedly right-wing and uncompromising rhetoric often to be evinced by Australian politicians, which is music to the ears of many in the UK Conservative party. The former prime minister Tony Abbott – now an adviser to Britain's Board of Trade – has been forthright about his traditionalist Catholic beliefs. His current successor, Scott Morrison, has forcefully stood up to China. Australia has long had a policy of detaining refugees and asylum-seekers offshore; some have criticised the policy as inhumane and possibly illegal, but the general message sent on immigration appeals to many British Tory right wingers.
It is worth noting that the UK brands its post-EU immigration rules as an "Australia-style", points-based system. Canada, too, uses a similar, points-based system for non-refugee migrants, and requires applicants to score two points higher than in Australia. Mysteriously, one never hears of Britain wanting appeal to hardliners by adopting Canadian-style immigration.
Anglo-Australian appreciation goes both ways. Australia's Mr Morrison and the UK's Mr Johnson had what was referred to as a "Zoom love-in" over a post-Brexit alliance last month. One Australian historian even wrote that his country may be experiencing a revival of "the old, Menziean allegiance to the UK" – a reference to the very strong ties developed under former Australian prime minister Robert Menzies up until 1973, when the UK joined the European Economic Community. The development ended the system of "imperial preferences" and forced Australia urgently to seek new markets.
Many at the time saw that, with some justification, as Britain abandoning the Commonwealth. But here a note of caution should be sounded. The "Global Britain" that Mr Johnson wants to see emerging post-Brexit cannot rely, nor be seen to rely, on an Anglosphere of white-majority former colonies such as Canada and Australia. The same goes for greater engagement with the Commonwealth – it must be with the wider group of 54 states, not just those with populations mostly descended from Britons.
For that would risk playing into the narrative of "imperial nostalgia" that "Leavers" need to guard against, regardless of the fact that it is nearly always Remainers, not Brexiteers, who talk about it. Such notions may – secretly – please nationalistic elements in the UK, but they will not be welcomed in the global south nor in the Indo-Pacific region that many close to the Johnson administration see as a productive future for Britain to explore. Memories of colonisation have not faded. They have no wish for new "white saviours" from the Anglosphere.
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'Global Britain' cannot rely, nor be seen to rely, on an Anglosphere of white-majority former colonies
This is a difficult needle for Mr Johnson to thread. He knows that some of the most enthusiastic supporters of Brexit, including in his own party, are not fully signed up to the more diverse, enlightened Britain hoped for during the reform period when Mr Cameron was Tory leader. He cannot lose their votes. At the same time, the liberal, internationalist Boris Johnson that I encountered when he was an MP, magazine editor and London mayor is exactly what will be needed as he tries to reunite his country around the world to his "Global Britain" banner.
Australia may be a good friend to Britain. If the UK wants to attract new compadres, however, it should not make it sound too much like a bromance. Once the deal is done (or not), I would suggest the comparison with Canberra be retired quickly. Britain is going to find out for itself, and soon enough, what life beyond the EU is going to be.
Sholto Byrnes is an East Asian affairs columnist for The National
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Mercer, the investment consulting arm of US services company Marsh & McLennan, expects its wealth division to at least double its assets under management (AUM) in the Middle East as wealth in the region continues to grow despite economic headwinds, a company official said.
Mercer Wealth, which globally has $160 billion in AUM, plans to boost its AUM in the region to $2-$3bn in the next 2-3 years from the present $1bn, said Yasir AbuShaban, a Dubai-based principal with Mercer Wealth.
“Within the next two to three years, we are looking at reaching $2 to $3 billion as a conservative estimate and we do see an opportunity to do so,” said Mr AbuShaban.
Mercer does not directly make investments, but allocates clients’ money they have discretion to, to professional asset managers. They also provide advice to clients.
“We have buying power. We can negotiate on their (client’s) behalf with asset managers to provide them lower fees than they otherwise would have to get on their own,” he added.
Mercer Wealth’s clients include sovereign wealth funds, family offices, and insurance companies among others.
From its office in Dubai, Mercer also looks after Africa, India and Turkey, where they also see opportunity for growth.
Wealth creation in Middle East and Africa (MEA) grew 8.5 per cent to $8.1 trillion last year from $7.5tn in 2015, higher than last year’s global average of 6 per cent and the second-highest growth in a region after Asia-Pacific which grew 9.9 per cent, according to consultancy Boston Consulting Group (BCG). In the region, where wealth grew just 1.9 per cent in 2015 compared with 2014, a pickup in oil prices has helped in wealth generation.
BCG is forecasting MEA wealth will rise to $12tn by 2021, growing at an annual average of 8 per cent.
Drivers of wealth generation in the region will be split evenly between new wealth creation and growth of performance of existing assets, according to BCG.
Another general trend in the region is clients’ looking for a comprehensive approach to investing, according to Mr AbuShaban.
“Institutional investors or some of the families are seeing a slowdown in the available capital they have to invest and in that sense they are looking at optimizing the way they manage their portfolios and making sure they are not investing haphazardly and different parts of their investment are working together,” said Mr AbuShaban.
Some clients also have a higher appetite for risk, given the low interest-rate environment that does not provide enough yield for some institutional investors. These clients are keen to invest in illiquid assets, such as private equity and infrastructure.
“What we have seen is a desire for higher returns in what has been a low-return environment specifically in various fixed income or bonds,” he said.
“In this environment, we have seen a de facto increase in the risk that clients are taking in things like illiquid investments, private equity investments, infrastructure and private debt, those kind of investments were higher illiquidity results in incrementally higher returns.”
The Abu Dhabi Investment Authority, one of the largest sovereign wealth funds, said in its 2016 report that has gradually increased its exposure in direct private equity and private credit transactions, mainly in Asian markets and especially in China and India. The authority’s private equity department focused on structured equities owing to “their defensive characteristics.”
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Company name: Jaib
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Co-founders: Fouad Jeryes and Sinan Taifour
Based: Jordan
Sector: FinTech
Total transactions: over $800,000 since January, 2018
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Day 5, Abu Dhabi Test: At a glance
Moment of the day When Dilruwan Perera dismissed Yasir Shah to end Pakistan’s limp resistance, the Sri Lankans charged around the field with the fevered delirium of a side not used to winning. Trouble was, they had not. The delivery was deemed a no ball. Sri Lanka had a nervy wait, but it was merely a stay of execution for the beleaguered hosts.
Stat of the day – 5 Pakistan have lost all 10 wickets on the fifth day of a Test five times since the start of 2016. It is an alarming departure for a side who had apparently erased regular collapses from their resume. “The only thing I can say, it’s not a mitigating excuse at all, but that’s a young batting line up, obviously trying to find their way,” said Mickey Arthur, Pakistan’s coach.
The verdict Test matches in the UAE are known for speeding up on the last two days, but this was extreme. The first two innings of this Test took 11 sessions to complete. The remaining two were done in less than four. The nature of Pakistan’s capitulation at the end showed just how difficult the transition is going to be in the post Misbah-ul-Haq era.
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