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'A fantasy': EU leaders dismissive on UK's post-Brexit customs plan 'A fantasy': EU leaders dismiss UK's post-Brexit customs plan
(35 minutes later)
EU leaders have poured cold water on Britain’s hopes of being able to sign trade deals during a Brexit transition period, with one describing the UK’s opening gambit for trade negotiations as a “fantasy”. EU leaders have poured cold water on Britain’s hopes of being able to sign trade deals with non-EU countries during a Brexit transition period, with one describing the UK’s opening gambit for trade negotiations as a “fantasy”.
The British government published proposals on Tuesday for “a new customs arrangement that facilitates the freest and most frictionless trade possible in goods between the UK and the EU”.The British government published proposals on Tuesday for “a new customs arrangement that facilitates the freest and most frictionless trade possible in goods between the UK and the EU”.
The policy paper calls for “a continued close association with the EU customs union for a time-limited period after the UK has left the EU” in March 2019. It also makes it clear that Britain intends to forge ahead with trade talks with other countries, but acknowledges that any new arrangements would have to respect the EU’s transition terms. The policy paper calls for “a continued close association with the EU customs union for a time-limited period after the UK has left the EU” in March 2019. It also makes clear that Britain intends to forge ahead with trade talks with other countries, but acknowledges that any new arrangements would have to respect the EU’s transition terms.
Guy Verhofstadt, the European parliament’s lead coordinator on Brexit, dismissed the proposals.Guy Verhofstadt, the European parliament’s lead coordinator on Brexit, dismissed the proposals.
The Czech secretary of state for EU affairs, Aleš Chmelař, suggested his government would not tolerate the UK being able to make trade deals during a transition period.The Czech secretary of state for EU affairs, Aleš Chmelař, suggested his government would not tolerate the UK being able to make trade deals during a transition period.
“I do believe it is not possible to have the same advantages and less obligations in general,” he told the Guardian. “This is a very clear thing, And it applies also with the custom union and any other deal that is somehow bound with it. So with any step in terms of market integration, market access, there is a set of obligations. This is very clear.” “I do believe it is not possible to have the same advantages and less obligations in general,” he told the Guardian. “This is a very clear thing, and it applies also with the custom union and any other deal that is somehow bound with it. So with any step in terms of market integration, market access, there is a set of obligations. This is very clear.”
Michel Barnier, the EU’s chief Brexit negotiator, used the publication of the UK customs paper to increase the pressure on London to settle Brexit divorce issues. Michel Barnier, the EU’s chief Brexit negotiator, used the publication of the UK customs paper to increase the pressure on London to settle the Brexit divorce issues of citizens’ rights, the cost of leaving and the Irish relationship.
The EU has insisted that the UK must make “sufficient progress” on the three issues he referenced before it will open talks on trade and the future relationship, a timetable the Brexit minister, David Davis, accepted at the start of negotiations in June. The EU has insisted that the UK must make “sufficient progress” on those three issues before it will open talks on trade and the future relationship, a timetable the Brexit minister, David Davis, accepted at the start of negotiations in June.
EU members (plus Turkey, Andorra, Monaco and San Marino) trade without customs duties, taxes or tariffs between themselves, and charge the same tariffs on imports from outside the EU. Customs union members cannot negotiate their own trade deals outside the EU, which is why leaving it – while hopefully negotiating a bespoke arrangement – has been one of the government’s Brexit goals. See our full Brexit phrasebook.EU members (plus Turkey, Andorra, Monaco and San Marino) trade without customs duties, taxes or tariffs between themselves, and charge the same tariffs on imports from outside the EU. Customs union members cannot negotiate their own trade deals outside the EU, which is why leaving it – while hopefully negotiating a bespoke arrangement – has been one of the government’s Brexit goals. See our full Brexit phrasebook.
Barnier will report to EU leaders in October on whether the UK has made sufficient progress to allow for trade talks to open.Barnier will report to EU leaders in October on whether the UK has made sufficient progress to allow for trade talks to open.
The policy paper reveals the UK government is looking at two models on customs, both of which would replicate the status quo to a significant extent. The first is described as “a highly streamlined customs arrangement”, which would require technology to ease the flow of goods over borders and securing a waiver on key paperwork. The second is referred to as “a new customs partnership with the EU”, whereby the UK would adopt EU rules on imports heading to the bloc. The policy paper reveals the UK government is looking at two models on customs, both of which would significantly replicate the status quo. The first is described as “a highly streamlined customs arrangement”, which would require technology to ease the flow of goods over borders and secure a waiver on key paperwork. The second is referred to as “a new customs partnership with the EU”, whereby the UK would adopt EU rules on imports heading to the bloc.
Trade experts on both sides see the customs partnership as a first for European trade. British negotiators would have to convince the EU they could be trusted to collect tariffs and protect its external border from fraudsters.Trade experts on both sides see the customs partnership as a first for European trade. British negotiators would have to convince the EU they could be trusted to collect tariffs and protect its external border from fraudsters.
Despite Britain’s 44 years in the EU, this could prove a tough sell, because some EU member states see the UK as a weak link in the chain on customs enforcement. The British government is fighting a €2bn (£1.8bn) fine for negligence after EU anti-fraud investigators accused the UK of failing to stop Chinese criminal gangs evading customs duties on clothes and shoes. Despite Britain’s 44 years in the EU, this could prove a tough sell because some EU member states see the UK as a weak link in the chain on customs enforcement. The British government is fighting a €2bn (£1.8bn) fine for negligence after EU anti-fraud investigators accused the UK of failing to stop Chinese criminal gangs evading customs duties on clothes and shoes.
One EU trade veteran questioned whether the UK could secure “an exceptional relationship which has never been agreed with any other country”.One EU trade veteran questioned whether the UK could secure “an exceptional relationship which has never been agreed with any other country”.
“Because it is unprecedented and giving them exceptional treatment compared to others, it is going to raise lots of issues,” said Roderick Abbott, a former EU trade negotiator, who held senior posts in Brussels and the World Trade Organisation during a 40-year career in trade policy.“Because it is unprecedented and giving them exceptional treatment compared to others, it is going to raise lots of issues,” said Roderick Abbott, a former EU trade negotiator, who held senior posts in Brussels and the World Trade Organisation during a 40-year career in trade policy.
He added that Davis is not addressing head on how the British proposals could be made acceptable to the EU “and how this would fit with the way the EU has been dealing with its members and with third countries in the last 40 years”. He said Davis was not directly addressing how the British proposals could be made acceptable to the EU “and how this would fit with the way the EU has been dealing with its members and with third countries in the last 40 years”.
A European commission spokesman said the EU was working on its own paper on customs issues before the next round of Brexit talks at the end of August.A European commission spokesman said the EU was working on its own paper on customs issues before the next round of Brexit talks at the end of August.
“We see the UK’s publication of a series of position papers as a positive step towards now really starting phase one of the negotiations. The clock is ticking and this will allow us to make progress,” he said.“We see the UK’s publication of a series of position papers as a positive step towards now really starting phase one of the negotiations. The clock is ticking and this will allow us to make progress,” he said.
“We will now study the UK position paper on customs carefully in the light of the European council guidelines and the council’s negotiating directives,” he added, referring to the negotiating red lines drawn up by EU leaders that were turned into a technical document by senior officials and ministers.“We will now study the UK position paper on customs carefully in the light of the European council guidelines and the council’s negotiating directives,” he added, referring to the negotiating red lines drawn up by EU leaders that were turned into a technical document by senior officials and ministers.
“We take note of the UK’s request for an implementing period and its preferences as regards the future relationship, but we will only address them once we have made sufficient progress on the terms of the orderly withdrawal,” the spokesman said.“We take note of the UK’s request for an implementing period and its preferences as regards the future relationship, but we will only address them once we have made sufficient progress on the terms of the orderly withdrawal,” the spokesman said.
“An agreement on a future relationship between the EU and the UK can only be finalised once the UK has become a third country. “An agreement on a future relationship between the EU and the UK can only be finalised once the UK has become a third country. As Michel Barnier has said on several occasions, ‘frictionless trade’ is not possible outside the single market and customs union.”
“As Michel Barnier has said on several occasions, ‘frictionless trade’ is not possible outside the single market and customs union.” Last July, before he became Brexit secretary, Davis called on the prime minister to “trigger a large round of global trade deals with all our most favoured partners” within three months. He said those negotiations could be completed in one to two years, before the UK left the EU.
Last July, before he became Brexit secretary, Davis called on the prime minister to “trigger a large round of global trade deals with all our most favoured partners” in September 2016. He said these negotiations could be completed in one to two years before the UK leaves the EU.
Speaking to BBC Radio 4 on Tuesday, Davis referred to the complexity of the work. “The simple truth is that it has taken us 12 months ... to work up policies, which are very, very complex,” he said.Speaking to BBC Radio 4 on Tuesday, Davis referred to the complexity of the work. “The simple truth is that it has taken us 12 months ... to work up policies, which are very, very complex,” he said.