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France says Brexit concessions by May make deal 'even harder' Barnier questions May's Brexit demands in white paper response
(about 4 hours later)
The French government has said Theresa May’s capitulation to Brexiters in parliament since the publication of the Brexit white paper has made the task of negotiating a deal “even harder”. The EU’s chief Brexit negotiator, Michel Barnier, has studiously picked apart Theresa May’s white paper after a meeting of the 27 member states, and warned that the prime minister had failed to offer Brussels a firm basis for the negotiations.
Arriving in Brussels for a meeting of EU ministers with the bloc’s chief negotiator, Michel Barnier, France’s European affairs minister, Nathalie Loiseau, said the acceptance by the UK prime minister of amendments backed by hardline Tory leavers had further complicated the already troubled talks. In reflection of widespread concern about the stability of May’s premiership, Barnier insisted he would be polite, but went on to illustrate in stark terms how the UK’s demands fell foul of the EU’s red lines and founding principles.
Giving the EU’s most detailed response yet to Theresa May’s hard-fought Brexit white paper, Barnier evoked concerns over smuggling, red-tape and putting European companies at a competitive disadvantage
“I am not negotiating, of course, on the basis of the white paper,” Barnier concluded, after a lengthy meeting of EU ministers in Brussels.
The former French minister went on to suggest that the UK’s position appeared far from settled: “This white paper is the result of a very intense debate in the United Kingdom that was necessary. Everyone can see that this debate is not over.”
The British government wants to keep the UK in the EU single market for goods based on a common rule book.
In order to avoid customs checks, the government wants an unprecedented customs system, where the UK would collect EU duties, while having the freedom to set different tariffs on goods destined for the British market.
Barnier said this “facilitated customs arrangement” raised practical, legal, economic and budgetary questions.
Setting out the questions he had posed to the Brexit secretary Dominic Raab during their first meeting on Thursday, Barnier said: “How can customs services verify the final destination of the goods, so as to choose the correct tariff? Is there not a major risk of fraud? What would be the financial and administrative extra costs be for business?” The issue is vital for the EU, as customs revenues go direct to the EU budget.
Barnier also questioned whether a non-EU country could collect EU customs without being subject to EU oversight. For this reason alone, EU diplomats say privately the British plan could never be accepted.
The EU is also deeply concerned that the customs plan would give outsider firms a competitive edge over European rivals, if the British and other countries use the UK as a route to avoid higher EU tariffs. “Are the British proposals in the interests of the EU,” Barnier asked. “Our aim is to protect the interests of the EU in these negotiations.”
With reference to a EU position paper, which ruled out so-called “cherry picking” of elements of bloc’s membership, Barnier made it clear that he believed the UK had breached the EU’s red-lines.
“I wish to work on the basis of the guidelines from the European council which you may wish to re-read, which were issued in March, and were very precise”, he said. “There are some elements [of the white paper] which do seem to contradict the guidelines of the EU council, the heads of government and state, namely the indivisibility of the four freedoms and the integrity of the single market.”
“There is not a lot of justification for the EU running the risk of weakening the single market”, Barnier added. “That is our main asset. There is no justification for us to create add burdens on business just because the UK wants to leave.”
Asked about the prime minister’s refusal to sign up to the EU’s “backstop” solution for avoiding a hard border on the island of Ireland, a point she reiterated on Friday morning in Belfast, Barnier insisted that the UK had signed up to the principles.
The backstop, which would effectively keep Northern Ireland in the customs union and single market under the EU’s version, is designed to come into force should a free trade deal or bespoke technological solution to the problem not be available after Brexit.
Barnier said: “Let me simply recall the commitment taken by Prime Minister Theresa May to have a backstop in her letter to President Tusk in March. The respect of this commitment is essential … We are working n the basis of what was agreed in march with Theresa May - with Theresa May.”
Barnier’s forensic deconstruction of the UK paper came after the French government said that May’s capitulation to Brexiters in parliament since the publication of the Brexit white paper had made the task of negotiating a deal “even harder”.
Arriving in Brussels for a meeting of EU ministers with Barnier, France’s European affairs minister, Nathalie Loiseau, said the acceptance by the UK prime minister of amendments backed by hardline Tory leavers had further complicated the already troubled talks.
On Monday, in order to avoid an embarrassing defeat in the House of Commons, the government reluctantly accepted four amendments put forward by Jacob Rees-Mogg, the chair of the European Research Group of Conservative MPs, who was seeking to wreck the prime minister’s proposed custom plans.On Monday, in order to avoid an embarrassing defeat in the House of Commons, the government reluctantly accepted four amendments put forward by Jacob Rees-Mogg, the chair of the European Research Group of Conservative MPs, who was seeking to wreck the prime minister’s proposed custom plans.
Loiseau told reporters she feared the result had further damaged the chances of a successful outcome.Loiseau told reporters she feared the result had further damaged the chances of a successful outcome.
“We have of course looked carefully at the white paper, but we have also witnessed that there have been changes asked by the British parliament regarding the future relationship, so we need to know where the British negotiator is on the future relationship, she said.“We have of course looked carefully at the white paper, but we have also witnessed that there have been changes asked by the British parliament regarding the future relationship, so we need to know where the British negotiator is on the future relationship, she said.
“You are mentioning the white paper, but now we know there have been amendments to different provisions in Britain, which makes it even harder for us to discuss with our British partners.”“You are mentioning the white paper, but now we know there have been amendments to different provisions in Britain, which makes it even harder for us to discuss with our British partners.”
The most critical amendment that was passed would ensure HMRC could not collect duties or VAT on goods on behalf of the EU unless there were a reciprocal arrangement, which Brexiters believe kills off May’s plans for a customs arrangement with the EU.The most critical amendment that was passed would ensure HMRC could not collect duties or VAT on goods on behalf of the EU unless there were a reciprocal arrangement, which Brexiters believe kills off May’s plans for a customs arrangement with the EU.
However, Whitehall sources insist the amendment does not do so as neither side would collect tariffs for the other anyway.However, Whitehall sources insist the amendment does not do so as neither side would collect tariffs for the other anyway.
Nevertheless, speaking as he arrived for the talks, Michael Roth, Germany’s Europe minister, said: “I will remain an optimist, but it is hard to remain an optimist in these challenging times … Time is running out, the clock is ticking and that is why I am a little bit nervous.” Michael Roth, Germany’s Europe minister, said: “I will remain an optimist, but it is hard to remain an optimist in these challenging times … Time is running out, the clock is ticking and that is why I am a little bit nervous.”
Loiseau said that in the light of the white paper, France was unclear whether May’s government “gets it” on the EU’s refusal to haggle over the indivisibility of the four freedoms of the single market – people, capital, goods and services.Loiseau said that in the light of the white paper, France was unclear whether May’s government “gets it” on the EU’s refusal to haggle over the indivisibility of the four freedoms of the single market – people, capital, goods and services.
The white paper published last week effectively seeks to retain the privileges of single market membership for agricultural and industrial goods alone.
Loiseau said: “You know our position because we have stated it from the start. We want to have an ambitious partnership with Britain, we want to work with Britain on a trade agreement and on internal and external security because it is a very important partner for us.
“But we have to protect the consistency of the single market and we have to make sure we keep our autonomy of decision.
“We will work on the basis of our principles and see to what extent our British partners fully gets it, including the British parliament.”
Brexit-supporting MPs also successfully forced the government to enshrine in law that the UK will not accept any deal involving a separate customs arrangement for Northern Ireland to the rest of the UK.
The issue of avoiding a hard border between the Republic of Ireland and Northern Ireland remains the most difficult in the talks.
The EU has proposed a “backstop” solution, to be in place until a satisfactory free-trade deal or technological solution is found, under which Northern Ireland effectively stays in the single market and customs union while the rest of the UK leaves.
On Friday, May repeated her belief that no British prime minister could sign up to such an arrangement, a position the EU believes amounts to backsliding on an agreement reached in December.
Downing Street wants a UK-wide backstop – anathema to the EU – to ensure there will be need for a border in the Irish Sea.
Loiseau said: “We want a solution which is consistent with the single market and with our rules. In December there was an agreement between our British partner on principles including the backstop if nothing else works. Until now we have not seen another solution that would be proposed and accepted by the 27.
“So we have to decide on the backstop and if in the future we find something smarter which provides us with no border and [maintains] consistency of the single market, lets decide it. But until now, we have to be serious on the backstop.”
Barnier will spend two hours with ministers from the other 27 member states presenting his views on the white paper, and updating them on his talks on Thursday evening with the Brexit secretary, Dominic Raab.
BrexitBrexit
European UnionEuropean Union
FranceFrance
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Theresa MayTheresa May
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