Liz Truss took on the Brexit negotiation role from David Frost after his resignation last month. AP
Liz Truss took on the Brexit negotiation role from David Frost after his resignation last month. AP
Liz Truss took on the Brexit negotiation role from David Frost after his resignation last month. AP
Liz Truss took on the Brexit negotiation role from David Frost after his resignation last month. AP

Liz Truss willing to override Brexit deal if Northern Ireland talks fail


Tim Stickings
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The UK’s foreign minister has said she is willing to trigger the emergency break clause in its post-Brexit trade deal with the EU.

In comments described as unhelpful by the bloc, Liz Truss said London would need to see “greater movement” from Brussels to reach a deal in the long-running talks.

Ms Truss took on the Brexit negotiating brief after David Frost’s resignation last month.

She will hold talks with her EU counterpart, Maros Sefcovic, at her English country home next week.

Writing in the Sunday Telegraph newspaper, she said that checks on goods going to Northern Ireland were causing unnecessary bureaucracy and damaging the UK’s integrity.

She said London sought a “pragmatic compromise”, but would use a provision known as Article 16 if the EU asked for checks it deemed excessive.

Article 16 allows either side to override the deal with unilateral “safeguard measures”. Mr Frost had threatened to trigger it before he resigned.

“I want a negotiated solution but if we have to use legitimate provisions including Article 16, I am willing to do that,” Ms Truss said.

“This safeguard clause was explicitly designed – and agreed to by all sides – to ease acute problems because of the sensitivity of the issues at play.”

The UK agreed under the protocol to inspect goods crossing from mainland Britain into Northern Ireland, so there is no need to check them again when they reach the Republic of Ireland, an EU member.

This prevents politically sensitive checks at the Irish border that could imperil the 1998 Good Friday Agreement.

But the UK has accused Brussels of demanding excessive checks.

Ms Truss cited examples of Jewish people struggling to find kosher food in Northern Ireland and families being unable to transport pets.

The protocol has riled many of Northern Ireland’s unionists.

Sir Jeffrey Donaldson, the leader of the Democratic Unionist Party, welcomed Ms Truss’s comments.

“She is right that unionists do not consent to the protocol,” he said on Sunday.

Joao Vale de Almeida, the EU’s ambassador to the UK, said Britain’s continued threats to invoke Article 16 were unhelpful.

“We’ve heard this before from the government so we’re not too surprised. We’re not too impressed,” he told Sky News.

The ambassador called for a “new momentum” in the talks and said they were taking too long.

“I think what we should focus on – at least that’s where we are focused on – is trying to find solutions for difficulties in the implementation of the protocol,” he said.

The EU was criticised last January after briefly invoking Article 16 to control vaccine exports outside the bloc. It later reversed this move.

In numbers

- Number of children under five will fall from 681 million in 2017 to 401m in 2100

- Over-80s will rise from 141m in 2017 to 866m in 2100

- Nigeria will become the world’s second most populous country with 791m by 2100, behind India

- China will fall dramatically from a peak of 2.4 billion in 2024 to 732 million by 2100

- an average of 2.1 children per woman is required to sustain population growth

The Gentlemen

Director: Guy Ritchie

Stars: Colin Farrell, Hugh Grant 

Three out of five stars

The five pillars of Islam

1. Fasting 

2. Prayer 

3. Hajj 

4. Shahada 

5. Zakat 

David Haye record

Total fights: 32
Wins: 28
Wins by KO: 26
Losses: 4

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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Updated: January 09, 2022, 3:07 PM