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EU likely to deny Britain’s hopes for free trade, former commissioner warns UK’s post-Brexit customs plan mocked as ‘fantasy’ by top EU negotiator
(about 4 hours later)
The UK’s desire for a temporary customs union with the EU is likely to be denied by the bloc if Britain seeks trade deals with any other nation, a former commissioner has warned. Brexit negotiator Guy Verhofstadt has mocked Britain’s plan to temporarily remain as part of the customs union and seek trade deals with other nations after it leaves the bloc as a “fantasy.”
The government unveiled plans on Tuesday to continue with the current customs arrangements for at least three years after Britain officially leaves the EU in 2019. It confirms the UK will ultimately leave the system but proposes a “temporary customs union” to ensure a “smooth and orderly” transfer.The government unveiled plans on Tuesday to continue with the current customs arrangements for at least three years after Britain officially leaves the EU in 2019. It confirms the UK will ultimately leave the system but proposes a “temporary customs union” to ensure a “smooth and orderly” transfer.
The move marks a victory for those advocating a smooth transition deal rather than a “cliff edge” feared by businesses. It is hoped the temporary measure will avert border chaos and calm businesses worried by the effects of leaving the bloc.
The customs union allows goods to travel across the EU free of tariffs and checks. Remaining part of the system would restrict Britain’s ability to sign trade deals with non-EU countries.
Brexit secretary David Davis has also insisted the government would “negotiate and sign” agreements with other countries once the EU withdrawal is complete, whatever the nature of any transitional period after 2019.Brexit secretary David Davis has also insisted the government would “negotiate and sign” agreements with other countries once the EU withdrawal is complete, whatever the nature of any transitional period after 2019.
However, former EU trade commissioner Karel De Gucht has warned that Brussels will find Britain’s proposals “very problematic.” Verhofstadt said no deal could be struck on the UK’s future trading relationship with the bloc until agreement had been reached on Britain’s divorce bill and citizens’ rights.
The Belgian, who was European commissioner for trade between 2010 and 2014, suggested the EU would accept the status quo on customs for several years only on its terms. They would be Britain abiding by decisions of the European Court of Justice, paying contributions, and not seeking to sign trade deals with third countries. "To be in and out of the Customs Union & ‘invisible borders’ is a fantasy. First need to secure citizens rights & a financial settlement," Verhofstadt said on Twitter.
De Gucht told the BBC the EU would not concede the benefits of a “temporary benefits union” if that meant “keeping Britain warm” for preferential agreements with non-EU countries in future years. “Terrorists & criminals don’t respect borders! Cross border instruments mean we are #SaferTogether,” he added.
Davis told the BBC Britain “should be able to have an arrangement whereby we can do the negotiation, sign it off, but not enter it into effect.” He insists the law is on Britain’s side, because the “duty of sincere cooperation” – the bar on customs union members negotiating other deals – would lapse with EU withdrawal. His remarks will be a bitter blow for Davis, who has insisted that his plans would be good for both Britain and the EU, and avoid a “cliff edge” for businesses when Britain leaves the bloc in March 2019.
The stance is likely to guarantee confrontation with the EU’s chief negotiator, Michel Barnier, once talks resume at the end of the month. Scottish First Minister Nicola Sturgeon also dismissed the UK government’s plan for a post-Brexit customs deal with the EU as a “daft ‘have cake and eat it’ approach.”
It is also possible that the EU will refuse to discuss the plan at all, having insisted the UK must first settle its priorities – citizens’ rights, the so-called divorce bill and the Northern Ireland border.
Davis has not ruled out Britain making some payments to the EU after 2019 as part of the transitional deal now being sought.
He insisted, however, that it would not be the “current £10 billion [US$12.9 billion] a year.” That appears to rule out the £36 billion, three-year financial settlement thought to be under discussion.
Scottish First Minister Nicola Sturgeon has dismissed the UK government’s plan for a post-Brexit customs deal with the EU as a “daft ‘have cake and eat it’ approach.”
In a tweet, she said the UK should “commit to staying in the single market and customs union, period.”In a tweet, she said the UK should “commit to staying in the single market and customs union, period.”
Former EU trade commissioner Karel De Gucht has warned that Brussels will find Britain’s proposals “very problematic.”
The Belgian, who was European commissioner for trade between 2010 and 2014, suggested the EU would accept the status quo on customs for several years only on its terms. They would be Britain abiding by decisions of the European Court of Justice, paying contributions, and not seeking to sign trade deals with third countries.
De Gucht told the BBC the EU would not concede the advantages of a “temporary benefits union” if that meant “keeping Britain warm” for preferential agreements with non-EU countries in future years.
A European Commission spokesman said they will study the UK’s proposals ahead of the next negotiating round starting in two weeks.
“As [chief EU negotiator] Michel Barnier has said on several occasions, ‘frictionless trade’ is not possible outside the single market and customs union,” the spokesman said.