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EU willing to discuss free-trade deal after 'progress' on final terms of Brexit EU willing to discuss free-trade deal after 'progress' on final terms of Brexit
(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. 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 “sufficient progress” has been made on the divorce deal.
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. As part of a “phased approach”, agreement on the withdrawal settlement in a first phase of negotiations would allow EU states to launch trade talks in a second phase, the draft circulated by the European council president, Donald Tusk, says.
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. 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.
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. “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.
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. 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 ‘cherry picking’, the draft says, nor any separate negotiations between individual states and the UK.”
More to follow… 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”, it says: “A non-member of the union ... cannot have the same rights and enjoy the same benefits as a member.”
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 free trade agreement struck on a bespoke basis for individual industrial sectors, such as the automotive and pharmaceuticals industries.
The draft guidelines were distributed to the 27 other governments in the bloc on Friday and may well be revised over the coming month before being endorsed by the member state leaders at a 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, adding 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 and situations” 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 because of the “unique circumstances” on the island of Ireland, “flexible and imaginative solutions will be required” to avoid a hard border.
The draft guidelines say the EU “stands ready to initiate work towards” an ambitious and comprehensive free trade agreement with Britain once the divorce deal is agreed, but stresses it “cannot amount to participation in the single market or parts thereof”.
It also adds that any future trade deal must be “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.”