Surviving Brexit Britain Deepening Cooperation on Asian Market:
Case of Liverpool-Surabaya Sister City
Praja Firdaus Nuryananda, Muhammad Jullyo Bagus Firdaus and Daniel Elifansyah
UPN “Veteran” Jawa Timur
Keywords: Brexit, cooperation, market, sister city, paradiplomacy
Abstract: Brexit (British Exit) came at the middle of 2016 and resulted in Britain walk out from European Union
(EU). Many saw the decision was a blunder, claiming Britain would lose economic gains from EU and
reduce political mutual relations with the EU states. Yet, these recent years, Britain has been very active in
conducting deeper beneficial relations with Asian states, as for 2015 the cooperation between The Republic
of Ireland and China had valued 11,1 billion pounds and still rising. In 2016, England had deepened its
relations with Indonesia by tightened the sister city cooperation between Liverpool and Surabaya. The two
cities had agreed to open the England’s Visa Application Center in Surabaya. The opening had been driving
people’s international mobility, especially Indonesian to come to Liverpool, England. The maneuver is
believed to be a strategy to alter the Britain’s economic structure. Aiming Asian markets is believed could
reduce the loss gained from the Brexit. This paper would explain how Britain anticipated the loss from
Brexit by gaining profit from Asian markets. This paper uses the concept of paradiplomacy, sister city, and
bilateral cooperation. The methodology used in this paper would be based on literatures combining with
qualitative analysis on the data. This paper would be a small yet valuable explanation for affirming the
Britain strategy in surviving the Brexit lossBritish Exit, or simply the Brexit, is the narration rised by the
government of UK over the long discussion and preparation to leave the regional organization which has
been care to develop their economic strenght and increase their political role in global stage for the past 55
years. Introduced in 2016, the Brexit then leaves a huge space of debate for scholar around the globe to get
involved into the circle. The debate centralized on how UK, as the superhouse of international society
approach of English School, could rise their placard to say “we’ll leave European Union”, and also how the
European Union as the super role-model on how should a regional integration looks like could lost the
power to keep its member in touch, and also mostly surrounded on what is the biggest motive for UK to
leave EU along with to what extent UK able to overcome the upcoming challenges regarding the life
without EU as their umbrella.
1 INTRODUCTION
The most known advantages on what basically
motivate UK to leave EU is because to be sovereign
enough to manage the free flow of people, notice
that the free flow of people within EU has been
criticized by many scholars as it also allows
abundant immigrant and even refugees from Africa
and Middle East to enter EU member countries.
Another reason is that UK it self will have an
authority to put tax on transnational trade without
necessarily conform to EU guideline in which
restricting their economic capability for years. But in
the other hand, the biggest disadvantage that UK
will face once the Brexit is completely done was
simply they will no longer obtain things like what
EU member states had. From the political and legal
benefits, environmental benefits, consumers
benefits, until the most importantly something that
almost all states collectively pursue, which is
economic matter.
In economic matter, UK will eventualy being
excluded from the Free Trade and removal of non-
tariff barriers which has helped to reduce costs
(Pettinger, 2010), notice that over 45% of UK
exports are to the EU and 50% of UK imports are
from the EU (Sayers, 2016). Moreover, by no longer
being part of EU as member state, meaning that UK
will no longer participate in the free movement of
people, labour, goods, service, and capital. Thats not
necessarily good for UK’s economy. Because
according to Tejvan Pettinger (2016), all of EU
410
Nuryananda, P., Firdaus, M. and Elifansyah, D.
Surviving Brexit Britain Deepening Cooperation on Asian Market: Case of Liverpool-Surabaya Sister City.
DOI: 10.5220/0010278000002309
In Proceedings of Airlangga Conference on International Relations (ACIR 2018) - Politics, Economy, and Security in Changing Indo-Pacific Region, pages 410-415
ISBN: 978-989-758-493-0
Copyright
c
 2022 by SCITEPRESS – Science and Technology Publications, Lda. All rights reserved

migrants, nearly 9/10 are in working age. He adds,
that in 2013 around 48,9% of EU migrants that came
to UK were between the age of 15 and 24. With all
that in hand, it has helped deal with the UK’s
demographic timebomb and statistically able to fill
the labour market shortages in certain areas.
Following the rise of Brexit, some scholars
expect that the economic growth within UK will be
slowing down. Philip Hammond, the UK official
budget forecasters, expect the growth in 2018 will be
at 1.4% compared with the previous forecast of
1.6%, and will be at 1.3% both in 2019 and 2020
(Melville, 2017). He even forecast that exit fees will
cost an extra €3 million over the next two years
(Amadeo, 2018).
In the world of diplomacy which transform
massively, not only states have absolute authority
but also non-state actors. In this case moot a city, in
2016, Surabaya as one of the biggest city in
Indonesia have a good relation with Britain,
specifically to Liverpool, England. In only three
years, 2014 to 2016, both cities had build an intense
cooperation and in the year of 2017, the cooperation
had broaden to a more strategic sector.
The cooperation was started 2014, which marked
with diplomatic visit from British Deputy
Ambassador to Indonesia. Surabaya has become the
city that which attracted Liverpool because of its
identity, which has a common as a city port and has
city development that is significant for their states.
The Vice Mayor of Surabaya has assumed this is a
good beginning by cooperating with Liverpool,
considering Surabaya has never made a form of
sister city with cities in England
(www.surabaya.go.id, 2014).
If this case was observed using a constructivism
perspective, this is a clear phenomenon that happen.
According to Wendt as a constructivism expert (in
Robert Jackson & Georg Sorenson, 2013), presence
of this interaction between states is caused by a
mutual interest and identities of both states. The
mutual activities and interests in developing a port
city and a large economic center it's a thing that has
to be achieved together. It would be a good start to
make a good relation in the future. As the writers,
we believe there will be a domino effect to the states
and giving more benefits to the both of the states.
Meanwhile in 2016, England has opened a Visa
Application Center in Surabaya. England
ambassadors for Indonesia, Moazzam Malik
(www.gov.uk. 2016) has said that visa application
center in Surabaya will accomodate and help the
people of Surabaya and Eastern Javanese to obtain
Visa so that they can visit England. England
committed to extend our presence in Surabaya to
make much more stronger relations between
England and Surabaya, the second biggest city
Indonesia. This has been a strategic effort for
England to accelerate cooperation between
Liverpool and Surabaya in the form of sister city.
With high mobility of the people from each cities
will certainly help the growth of the economic sector
for both of the countries.
The development of cooperation of sister city
between Liverpool and Surabaya come to its peak in
the year of 2017. With the signing of the Letter of
Intent (LoI) about the cooporation in the form of
sister city between Surabaya and Liverpool that was
signed by Mrs.Risma along with the mayor of
Liverpool, Joe Anderson, in May 17
th
, 2017. The
mechanism of the LoI contain the commitment of
cooporation between both cities, that include smart
city cooperation, maritime and economic creative.
The Lol is expected to be able to push the
commitment of cooperation in the form of stronger
Legal Foundation through Memorandum of
Understanding (MoU) in the year to come (Minister
of Foreign Affair Indonesia. 2017).
In the same year according, to the reports of
Minister of Communication and Information of
Surabaya (in www.surabaya.go.id. 2017). Moazzam
Malik visited Surabaya for the third time. The talk of
cooperation about the development of the city
continued and progressed. Talking about the
cooperation of both city that is focused on five fields
such as. transportation. education. tourism. business.
and sports. Considering of the many potential that
can be developed in building the cooperation
between both cities will make a stronger relationship
between the countries itself. England and Indonesia.
which share the same identity as an archipelagic
states.
2 METHOD
2.1 Beneficial Bilateral Corporation
Bilateral cooperation came as strategy to state actor
ranging from as manifestation of hegemonial power
to assesment of cost and benefit gaining (Hassler.
2003). In term of bilateral cooperation as hegemonic
power. Robert Keohane (in Herbert. 1996) proposes
an additional functional theory of hegemonic power.
Hegemonic power will eventually form “institution”
or “regime” in order to conduct bilateral cooperation
along the international system. Similar to Koehane
proposal. Thomas Franck also stresses the
Surviving Brexit Britain Deepening Cooperation on Asian Market: Case of Liverpool-Surabaya Sister City
411

significant role of rule-legitimacy. Franck proposes
that cooperation is built under the obedience and
habituation from the actors. Cooperation almost
impossible to built without rule- legitimacy. On the
other hand. Ernst Haas (in Hassler. 2003) explains
that his neofunctionalism approach also stressing the
importance of cooperation driven by intended
consequences. including bilateral cooperation. In
intended consequences. actors decide to cooperate
with the others based on rational- economic yet
political cost and benefit calculation. Hence. the
cooperation between Liverpool and Surabaya must
have hegemonial and cost-benefit aspects.
Activate Window;
Figure 1: Britain Trade Trends in Good (HM Revenue and
Customs Overseas. 2018)
The figure above shows the dynamics of Britain
trade slightly before the Brexit and after the Brexit.
The report also commented on Britain trade partners
as shown by Figure 2 below.
Figure 2: Britain Trade Overseas Partner in Good (HM
Revenue and Customs Overseas, 2018)
The two figures above have shown the Britain trade
trends and partners from 2016 until 2018. The
hegemonial power are still USA, Germany,
Netherlands, and China. Yet, the highest percentage,
measured by trade volume, of Britain trade partners
come from non-EU states with 51%, along with
China and USA. We could assume that even before
the Brexit, Britain hegemonial partners in overseas
trade are non-EU countries, ranging from USA,
China, and many more.
Meanwhile, in the Figure 1, the orange line
shows import, blue line as the export, and green line
as trade gap. It was in the secon and third quarter of
2017 the dynamics of Britain trade was very
fluctuative. It was the same period when the Brexit
referendum held by the government. In the first
quarter of 2018, Britain trade was relatively stable
with small gap on import and export. First quarter of
2018 also marks the most fluctuative Britain trade
trends since the end of 2016.
Overall, according to the report, Britain first quarter
trade trends was fluctuative. In April 2018, EU
exports were 13,7 billion pounds, while in April
2017 EU exports were 12,2 billion pounds. For the
same period, EU imports were 21,3 billion pounds,
and for April 2017 EU imports were 19,4 billion
pounds. While for non-EU trade, in April 2018 the
exports were 14,3 billion pounds, and for April 2017
the number was 14,2 billion pounds. In April 2018,
the non-EU imports were 18,1 billion pounds, while
in April 2017 were 19 billlion pounds (HM Revenue
and Customs Overseas, 2018). Britain relatively
exports more to non-EU partners, but she remain
imports so many from EU partners.
According to Haas’ approach, implementing in
current case, Britain’s trend on overseas trade
remains dominated by non-EU partners. It would be
rationally logic if the Brexit referendum was held.
The economic-political calculation of regional trade
was less dependent on EU states. With the current
economic situation, leaving EU would also mean
making import lesser than the export number.
2.2 Paradiplomacy Explained
Paradiplomacy according to Aleksander Kuznetsov
(in Malgorzata Pietrasiak et al., 2018), describes
paradiplomacy as a commitment of sub-national
actors of national states to international relations.
The explanation of paradiplomacy is in line with the
liberalism perspective of Nye and Keohane (in
Tomasz Kaminski, 2018) that political instructions
between any significant actors whose characteristics
include autonomy, the control of substantial
resources relevant to a given issue area and
participation in political relationship across state
lines. What Nye and Keohane means by sub-national
actors (such as local government or city) That has
been given authority by the central government. In
an economic aspect it surely will create a room for
investation, to create growth and development of
economy.
Paradiplomacy has become a policy several
countries, especially Indonesia after the existence of
£ Billions
-20
-30
ACIR 2018 - Airlangga Conference on International Relations
412

local autonomy policy. According to Republic
Indonesia constitution number 37 year 1999 about
foreign relations chapter 2, article 7, paragraph 1,
president may appoint state officials besides minister
of foreign affairs, government officials, to organize a
foreign relations in certain fields. With addition of
Republic Indonesia Constitution number 32 year
2004 about local government article 42, paragraph 2,
on international cooperations is regional cooperation
with foreign parties that covers cooperation of
“twin” cities, with the sister city cooperation
between Surabaya and Liverpool has become the
government of Surabaya’s efforts to increase the
welfareness of their people through deepening the
international interaction, especially for Liverpool.
Paradiplomacy has become the main evidence of
the existence of liberalism, that this thing will create
a form of interdependency and create a profitable
relation. In its practice, paradiplomacy require an
identification for an actor about something to offer
and also that is required for the involved actor.
According to Morgenthau (in Anthony F. Lang JR.,
2013) the idea of diplomacy points to the complexity
of understanding the self and acting in a world with
others. This become an important note for all the
actors with authority to do an act of diplomacy, by
understanding the existing opportunities that will
surely bring profits as well as reach their own
interests, paradiplomacy become the thing that is
required to accomplish national interest through a
sub-national actor. Along with the massive of the
globalisation, that has made international politics
more complex, marked by the existence of non-state
actor in the international relation.
The presence of paradiplomacy become one of
the strategic and applicative act to creates a futuristic
relation for both sides of sub-national actor to
strengthen their existence in the international world,
also increasing the diplomatic relation of two
countries so that the interests is achieved. About the
paradiplomacy on its own, in its practice according
to Andre Lecours (2008), is categorized to three
parts based on the purpose of a sub-national actor.
First is economic, second is complex cooperation
(such as trade and development of technology,
culture, and education, and contrast to the type of the
first and second purpose which only only focusing
on the economic sector), and the last purpose is
about political interest (intended to expression of
identity that is contrast to the central government,
such as Quebec and Catalonia).
The implementation of paradiplomacy on its
own, is undeniable, that those three purposes can
merge into one. The initial goal of paradiplomacy
can involve all aspect, such as economy, non-
economy (technology development as well as the
existence of a region to shape and to express its
identity to achieve its interest, like Quebec that
affiliates with other countries that speak French in
order to creates a cooperation with their identity to
get recognized globally. The province of Quebec,
which maintains close ties with France, and in some
cases, even influencing the French government on
its policies
regarding the French language (Andre
Lecours, in Marten Kooistra, 2002).
Paradiplomacy is a facilitator for a subnational to
ease the enhancement of selfdetermination of each
of sub-national, either for province or city.
2.3 The Sister City
The form from the part of paradiplomacy, is that one
of them is using the application of the cooperation of
“sister city”. With the presence of paradiplomacy, it
has produces new varieties in a diplomatic act. With
technology that is massively developing, mainly in
the communication field to keep interacting and
working with each other. In the city government
context, this might have a purpose to develop city
through cooperation of Sister City. In another words
by Zelisnky (1991, in Nathan Henrique Alves Caze,
2005) “city- twinning”, is an overall objective of
advancing mutual understanding and friendship, in
it, covers many activities between to states that in
the relationship of sister city, such shared activities
are, economic, cultural, ideological, historical,
tourism, or other type of concern or perhaps a
beneficial complementarity of interest.
The cooperation of sister city basically is to
increase development in a regional scale, and it
should impact the national development. Referring
to Andre Lecours, cooperation of Sister City started
by the offer of Deputy Ambassador of England to
Indonesia to invite and visit Liverpool, this has a
purpose so that the cooperation between both cities
is made, the similarities of both cities as a port city
which the growth and the development of its
economy. According to Vice Mayor of Surabaya, (in
Reports of Minister of Communication and
Information of Surabaya, 2014), the cooperation
with Liverpool is to develop the city, in the meeting
is also discussed an education topics, such as student
exchange and also a health program. This is really
important for Surabaya to be able to cooperate with
Liverpool in a form of sister city. With Visa
Application Central is made in Surabaya, it’s to
ensure the friendship within both states that is
Surviving Brexit Britain Deepening Cooperation on Asian Market: Case of Liverpool-Surabaya Sister City
413

represented by the cities. It will help in shaping the
mobilisation efforts between the people of both
cities, creating a shared interest using shared
identity.
3 RESULT
Right after declaring the Brexit, UK unsurprisingly
began its massive negotiation with non-EU states as
its attempt to build their own economic regime after,
soon to be, being expelled from EU’s single market
and common union. This negotiation attempts came
in various form, increasing the import- export
relations with Commonwealth Countries as its never
been done seriously while UK in EU, start to begin
trade-based relations with the world emerging
economic power such as Japan, China, and India,
and also to start a new model of diplomacy in which
involving the role of sub-state as a decision-maker
but still in its respective country’s guideline to
establish a touch with the potential city or province
local government accross the border, or simply
known as paradiplomacy.
If the question is whether the act of city twinning
or sister city beneath the paradiplomacy could
replace the benefit of EU to UK after the Brexit, so
it will be a long debate to be discussed. Many
scholar might said that the economic lost of UK after
Brexit is towering to be replaced by any other form
of economic relations. But those lost could be
overcome by these act of city twinning. So far, in the
year of 2006, there were more than 2525 twinning
links between the UK and international cities in
existence (Clarke, 2008). And those number is
massively rised following the Brexit, for example
the Surabaya- Liverpool sister city. Aside to stay in
touch with the UK’s former enemy after World War
II, city twinning has been further enriched by the
emphasis on economic partnership especially with
countries possessing market potential (Wu, 2016).
We can take a look on how the contact between
British and China cities could benefit their self up in
economic matters. Eventhough there were no
financial target formulated in their MoU in the first
place, but the economic benefits for the two
countries are still expected. For instance, the
Oxfordshire county council’s twinning agreement
with Guangdong province, which focuses on
bussiness partnerships, has resulted in direct
economic benefits since the relations had only been
in place for three to five years (LGA Survey, 2013).
Another example to be concern is the current
sister city of Liverpool and Surabaya, the
Indonesia’s 2nd largest city after Jakarta, as an
attempt to boost UK’s influence in South East Asia.
As mentioned in previous chapter, the Surabaya-
Liverpool sister city will help the growth of the
economic sector for both countries. The UK’s city,
starting from Leeds, Cardiff, Glasgow, Newcastle,
London, until Manchester also have their own
unique sister city spreaded up around the globe to
support the making of UK’s economic regime.
Overall, most UK cities city surveyed (46%)
actively manage twinning arrangements strategically
(Acuto, 2016).
The existence of paradiplomacy is certainly can
not be separated from the role of globalisation to be
able to works perfectly. Globalisation which often
be understood as a process of economic integration,
has create a new room in a process of diplomacy.
Sister City is one of it. The cooperation of sister city
that was originally based on the shared identity, has
resulted a spill-over. In the year of 2017, after the
signing of the LoI (Letter of Intent) the mayor of
Surabaya and the mayor of Liverpool had the
willingess to bo more focused on the efforts of
economic development and other low politics.
Basically, a transnational relation, according to
Robert Jackson and Georg Sorenson (2013) by the
thinking of the liberal sociological, the relation
between people is more cooperative and supports the
creation of peace compared to the relation between
national government. However, it can’t be denied
that with transnational relation, or paradiplomacy
itself, requires an agreement from the central
government of a state, which in Indonesia is known
as a regional autonomy.
The application of paradiplomacy through the
cooperation of sister city is considered effective.
When a state has a cooperation of sister city, it often
receive many positive impact that is cause by the
spill-over, that usually focused on the development
of economic or other low politics. Following the
bomb attacks at Surabaya, the Ambassador of
England held a meeting with the Mayor of Surabaya.
In the meeting, Moazam Malik (Zumrotul Abidin, in
reports of Suara Surabaya, 2018) said that the terror
attack at Surabaya has not discourage the
cooperation between Liverpool and Surabaya. The
England officials wants to continue the cooperation
of Sister City between Surabaya and Liverpool and
to help in dealing with terrorism in Surabaya.
Paradiplomacy has become effective because not
only that it cover the economic sectors, but also
other intercultural aspect such as, transportation,
health, or sports. Which each of them has direct
connection to the individuals. With the
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414

decentralisation of power to be able to make
paradiplomacyaplicative has created a peace and an
interdependency in the same level (city/province).
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