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EU rejects UK’s plans for post-Brexit trade relationship
Brussels instructs negotiators to take austere approach to trade talks
The EU has forcefully rebuffed Theresa May’s vision for trade after Brexit, laying out a narrow view of future relations with the UK and warning of the “negative economic consequences” of her choices.
Donald Tusk, the European Council president, circulated draft guidelines instructing EU negotiators to take an austere approach, with severely limited arrangements for services and regulatory co-operation. No mention of financial services is made.
“The European Council has to take into account the repeatedly stated positions of the UK, which limit the depth of such a future partnership. Being outside the customs union and the single market will inevitably lead to frictions,” the guidelines state.
“Divergence in external tariffs and internal rules as well as absence of common institutions and a shared legal system, necessitates checks and controls to uphold the integrity of the EU Single Market as well as of the UK market. This unfortunately will have negative economic consequences.”
The guidelines running to 5-6 pages are the most detailed presentation yet of the EU’s goals for future relations, cast as a response to London’s proposals. It sketches an economic relationship based around a free-trade agreement that could maintain zero tariffs and quotas on goods, but stops short of the kind of “dynamic” alignment of market rules sought by Britain.
The text says any future UK-EU relationship should be overseen by the European Court of Justice in cases of dispute settlement, which will also include the possibility of “sanctions and cross retaliation measures”.
It also rules out prime minister May’s desire for Britian to stay part of EU agencies such as the European Medicines Agency after Brexit. “The Union will preserve its autonomy as regards its decision-making, which excludes participation of the United Kingdom as a third-country to EU Institutions, agencies or bodies”, says the draft.
The guidelines are the EU27’s first attempt to sketch out a vision for a future EU-UK trade relationship and are subject to negotiation,
EU leaders are pressing Ms May for more clarity on her demands. The text states that should the UK’s position “evolve”, the EU “will be prepared to reconsider its offer”.
Other side agreements would seek to maintain as close a relationship as possible with a non-EU member across justice, security, aviation and fisheries.