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EU willing to discuss free-trade deal after 'progress' on final terms of Brexit EU says no to free-trade talks until 'progress' on final Brexit terms
(35 minutes later)
The European Union is ready to talk to Britain on a future free-trade deal before the two sides agree final terms on Brexit, draft EU negotiating guidelines issued on Friday show, but only after considerable progress is made on the divorce deal. EU leaders have said there will be no talks on Britain’s future relationship with the bloc until the UK government makes enough “progress” on the Brexit divorce – including settling its bills and citizens’ rights.
As part of a “phased approach”, agreement on its withdrawal settlement in a first phase of negotiations would allow EU states to launch trade talks in a second phase. Donald Tusk, the European council president, said: “Once, and only once we have achieved sufficient progress on the withdrawal, can we discuss the framework for our future relationship. Starting parallel talks will not happen.”
The draft circulated by the European council president, Donald Tusk, also says the UK must accept EU rules, including budget contributions and judicial oversight in a transition period likely to follow Britain’s departure in 2019 and before a free-trade pact can be finalised. Tusk said the EU was united behind this principle and wanted to see progress on settling the status of EU nationals and Britain’s share of EU liabilities.
If Britain remains a part of the EU single market for a time after Brexit, it would also have to respect all “four freedoms”, which would mean accepting free immigration from the continent. Making clear that it is the EU27 who will define “sufficient progress”, the draft also says the UK must accept EU rules, including budget contributions and the judicial oversight of the European court of justice in a transition period likely to follow departure in 2019 and before a free-trade pact can be finalised.
The draft guidelines, distributed to the 27 other governments in the bloc on Friday, may be revised over the next month before being endorsed by the leaders at a summit on 29 April. “The European council will monitor progress closely and determine when sufficient progress has been achieved to allow negotiations to proceed to the next phase,” the draft says.
More to follow… If Britain remains a part of the EU single market for a time after Brexit, it would also have to respect all “four freedoms”, which would mean accepting free immigration from the continent. “There can be no ‘cherrypicking’, the draft says, “nor any separate negotiations between individual states and the UK.”
Tusk rejected the description “Brexit bill” and said it was only fair that the UK paid what successive governments had signed up to. “It is only fair towards all those people, communities, scientists, farmers and so on to whom we, all the 28, promised and owe this money.”
“The talks will be difficult, complex and sometimes confrontational,” Tusk added. But he stressed “the EU will not pursue a punitive approach … Brexit itself is already punitive enough”.
On the future trade deal, the draft also makes clear the bloc’s objective will be to “preserve the integrity of the single market”. This “excludes participation based on a sector-by-sector approach”. “A non-member of the union … cannot have the same rights and enjoy the same benefits as a member,” the draft says.
Theresa May and Brexit ministers have said Britain aims to leave the single market and most of the European customs union in favour of agreeing a bespoke free-trade deal for individual industrial sectors, such as the automotive and pharmaceuticals industries.
Tusk will chair a summit of the EU’s 27 prime ministers and presidents at the end of April to finalise the bloc’s negotiating position before talks with the UK begin.
His message about an “orderly withdrawal” was repeated in a nine-page document of the EU’s Brexit negotiating principles that was sent to national capitals on Friday morning. A copy of the guidelines makes clear that the EU will oppose any attempts by the British government to start bilateral talks. “There will be no separate negotiations between individual member states and the United Kingdom,” it states.
Tusk rejected the view that the UK was attempting to use security as a bargaining chip, describing the claim as a misunderstanding.
“Especially after the terrorist attack in London, it must be clear that terrorism is our common problem,” he said. “That is why I rule out this kind of interpretation and speculation that security cooperation is used as a bargaining chip. It must be a misunderstanding … I am absolutely sure no one is interested in using security cooperation as a bargaining chip.”
The draft guidelines may well be revised over the coming month before being endorsed by the EU27 leaders at the summit on 29 April.
“The union’s overall objective in these negotiations will be to preserve its interests, those of its member states, its citizens and its businesses,” Tusk’s letter says. It adds that the bloc will act as one and “strive to find an agreement” but “will prepare itself to be able to handle the situation also if the negotiations were to fail”.
Agreeing the status of EU citizens in the UK and British citizens on the continent will be a priority, the draft says, stressing that the reciprocal guarantees offered must be “enforceable and non-discriminatory”.
It sets no figure on Britain’s exit bill but says a “single financial settlement” covering “all legal and budgetary commitments as well as liabilities” should ensure both sides respect all obligations undertaken before the UK leaves.
Continuing to “support and protect the achievements, benefits and commitments of the Northern Ireland peace process will remain of paramount importance,” the document says, adding that “flexible and imaginative solutions will be required” to avoid a hard border on the island.
The draft guidelines say the EU was read to work towards an ambitious and comprehensive free-trade agreement with Britain once the divorce deal was agreed but stresses it “cannot amount to participation in the single market or parts thereof”.
It also adds that any future trade deal must “ensure a level playing field in terms of competition and state aid, and must encompass safeguards against unfair competitive advantages through, inter alia, fiscal, social and environmental dumping”.