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Barnier questions May's Brexit demands in white paper response Michel Barnier dismisses Theresa May's Brexit white paper demands
(about 1 hour later)
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. The EU’s chief Brexit negotiator, Michel Barnier, has forensically picked apart Theresa May’s white paper after a meeting of the 27 member states, warning that the prime minister had failed to offer Brussels a firm basis for the negotiations.
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.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 three-hour meeting of EU ministers in Brussels.
“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 bloc’s negotiator also responded to May’s strident rejection of the EU’s solution for avoiding a hard border on the island of Ireland, in which Northern Ireland would effectively stay in the customs union and single market until a trade deal or bespoke technological solution was arranged that could serve that function.
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 prime minister had committed to solving the problem, Barnier insisted, and having checks on goods passing from province to the rest of the UK was not the same as creating a border in the Irish sea, he insisted.
The British government wants to keep the UK in the EU single market for goods based on a common rule book. “We cannot afford to lose time on this issue,” Barnier said, “and this is why we have invited the UK to work on the backstop next week … We are working on the basis of what was agreed in march with Theresa May - with Theresa May.”
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. A senior diplomat said member states had been surprised and disappointed by the aggressive tone of May’s speech in Belfast earlier in the day, in which she accused the EU of seeking to perform an “economic and constitutional dislocation” of her country.
It was, however, in giving the EU’s most detailed response yet to May’s hard-fought-over Brexit white paper that Barnier was at his most damning, evoking concerns over smuggling, red tape and putting European companies at a competitive disadvantage
He suggested 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,” he said.
The British government has said it 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.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. Setting out the questions he had posed to the new Brexit secretary, Dominic Raab, during their first meeting on Thursday, Barnier said he was concerned that European businesses would face higher administrative costs and there would be increased opportunity for fraud.
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. 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 that 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.” 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.
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. 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 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,” he said. “There is not a lot of justification for the EU running the risk of weakening 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.” Barnier’s deconstruction of the white paper came after the French government said that May’s capitulation to Brexiters in parliament since its publication had made the task of negotiating a deal “even harder”.
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. Arriving in Brussels to meet Barnier, France’s European affairs minister, Nathalie Loiseau , said the acceptance by May of amendments backed by hardline Tory Brexiters had further complicated the already troubled talks.
“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. She said: “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.” Michael Roth, Germany’s Europe minister, said: “I will remain an optimist, but it is hard to remain an optimist in these challenging times”.
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. With doubt growing about the credibility of the white paper, Jeremy Hunt, the foreign secretary, admitted the plan agreed at Chequers was merely a starting point for future talks.
However, Whitehall sources insist the amendment does not do so as neither side would collect tariffs for the other anyway. Questioned by reporters on a visit to Scotland, Hunt twice refused to describe the Chequers plan as the UK’s “final offer” on Brexit. “It’s our substantive offer I think is the best way to phrase it,” he said.
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.
BrexitBrexit
European UnionEuropean Union
FranceFrance
EuropeEurope
Theresa MayTheresa May
ConservativesConservatives
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