Brexit begins for real: As EU-UK talks start, what do both sides want?
Negotiations on the future relationship between the European Union and the United Kingdom begin on Monday. DW takes a closer look at what to expect in the coming weeks and months.
What will the talks cover?
The talks will cover the future relationship between the UK and the EU. Primarily, the talks will cover trade and economic cooperation, law enforcement, judicial cooperation, foreign policy, security and defence.
While much of the focus has been on the future trading relationship, the EU has stressed the importance of other matters in the negotiations. “Nothing is agreed until everything is agreed,” is its common mantra.
What is the timetable?
When the UK formally left the EU on January 31, the transition period begun, during which the UK remains bound to EU rules. That is scheduled to end on December 31, 2020, and the UK government says it will end talks at that stage if no deal has been struck.
Ten rounds of meetings are scheduled every three weeks from Monday, March 2, until October when a deal is desired.
Most experts agree that timetable is already exceptionally tight but UK Prime Minister Boris Johnson threatened to accelerate it further last week, saying the UK would end talks as early as June if negotiations had failed to progress by then.
The terms of the Withdrawal Agreement agreed last November do have a provision for the transition period to be extended up to the end of 2022 if both sides agree.
What does the UK want in terms of trade?
The buzz word on the UK side since Johnson took over is Canada, referring to CETA, the trade agreement agreed between the EU and Canada in 2016.
Johnson has even coined a phrase for the deal he wants: “Super Canada Plus.” The UK’s negotiating goals, published last week, shed some light on that nebulous phrase.
UK Prime Minister Boris Johnson says he wants a trade deal similar to the CETA agreement with Canada
The UK says it wants a “comprehensive free trade agreement” with the EU but specifies that means a Canada-style agreement “supplemented” by other agreements on fisheries, crime, transport and energy.
CETA has removed around 98% of tariffs on goods traded between the EU and Canada. There is also cooperation on standards, limiting the need for safety checks. But it is not a customs union or single market, so border controls still apply.
There are also restrictions on financial services, a key sector for the UK economy. Tariffs and quotas also apply across the agricultural sector, while agricultural goods coming from Canada must comply with EU standards.
The UK wants the same deal, except with 100% access, including for agricultural goods and financial services, and without signing up to any EU rules. In other words, the UK wants a removal of tariffs and customs on all trade with the EU both in terms of goods and services but it does not want to be bound by EU regulations or laws.
It emphasizes repeatedly that it will not abide by EU laws and will not be aligned with EU laws or “institutions, including the Court of Justice.”
What does the EU want?
At first glance, it might appear that the UK and EU want the same thing. The EU’s negotiating mandate says the bloc”intends to establish a free trade agreement with the UK which ensures zero tariffs and quotas apply to trade in goods.”
David Frost (left) and Michel Barnier (right). Frost is the UK’s chief negotiator, Barnier is the EU’s
However, you don’t need to read too far to understand where sharp differences lie.
The EU says the future economic partnership with the UK “should be underpinned by robust commitments to ensure a level playing field for open and fair competition, given the EU and UK’s geographic proximity and economic interdependence.”
The words ‘level playing field’ might well become the most important in the entire negotiation. In the political declaration agreed between the EU and UK last October (a non-legally-binding text which accompanied the legally binding Withdrawal Agreement), the EU and UK agreed that a robust regulatory regime to ensure fair and open competition would be needed to underpin a free trade agreement.
In practice, that means the EU wants the UK to apply the same regulations and laws on matters such as state aid to companies, labor laws and environmental laws, including laws which may evolve and change over time, such as those related to the fight against climate change.
In a departure from the language of the political declaration, the UK now says it wants looser arrangements on those matters, and wants an agreement similar to that which Canada and Japan have reached with the EU.
The EU says that the UK’s geographical proximity to the EU makes that impossible. “Calais is only a couple of kilometers from Dover. The UK cannot expect high-quality access to the single market if it insists on diverging from our rules,” a European Commission spokesperson said.
Geographical proximity is not the only reason the EU does not want a Canada-style deal.EU-UK trade and EU-Canada trade are vastly different in scope. Only about 10% of Canadian trade is with the EU, compared with around 45% of UK trade.
As well as that, while Canadian-EU trade falls along specific lines, UK-EU trade is extremely wide-ranging, encompassing a far wider variety of business and commerce.
What other areas may lead to disagreement?
Other than the key “level playing field” question, there is also likely to be a big question mark over financial services. Future access to the EU market is vital for the City of London. But while the EU is likely to recognize UK regulations and “equivalence” in this area, it is unlikely to give the UK special treatment to avoid it being subject to having its equivalence approval status stripped at 30 days’ notice, as currently applies for countries outside the EU.
Another issue: fisheries. The EU’s Common Fisheries Policy allows European fishing fleets equal access to EU waters. Although fisheries accounts for just 0.1% of the UK economy, coastal communities in the UK voted enthusiastically for Brexit in order to “take back control” of UK waters. That makes it a politically sensitive issue.
The border in Ireland: It hasn’t gone away, you know
The UK government says it will become an independent coastal state and will seek exclusive rights to its waters. The EU wants a long-term deal guaranteeing continued access to UK waters.
Another issue which may not quite have gone away yet is Northern Ireland and the border with the rest of Ireland. Although the Withdrawal Agreement seemed to have resolved the issue, there have been reports that the UK will renege on its pledges with regard to carrying out checks on goods that cross between Britain and Northern Ireland. The UK denies this, but if it were to happen, or if the UK requested a change to the Northern Ireland protocol, a major flashpoint would reemerge.
What’s the key question?
Both sides want a free trade agreement but the EU will insist that for the UK to have privileged access to the EU single market, it must abide by EU standards and regulations, especially with regard to the aforementioned level playing field issues.
The UK insists this is the antithesis of Brexit’s meaning. Finding a compromise between those two competing viewpoints is the central question.
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Who’s who in Brexit?
Britain’s embattled skipper: Theresa May
May became prime minister after David Cameron resigned from the post in the wake of the Brexit referendum vote in June 2016. Despite her position, she has struggled to define what kind of Brexit her government wants. Hardliners within her Conservative party want her to push for a clean break. Others want Britain to stay close to the bloc. The EU itself has rejected many of May’s Brexit demands.
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Who’s who in Brexit?
Britain’s reluctant rebel: Jeremy Corbyn
The leader of the British Labour Party has no formal role in the Brexit talks, but he is influential as the head of the main opposition party. Labour has tried to pressure the Conservative government, which has a thin majority in Parliament, to seek a “softer” Brexit. But Corbyn’s own advocacy has been lukewarm. The long-time leftist voted for the UK to leave the European Community (EC) in 1975.
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Who’s who in Brexit?
Britain’s boisterous Brexiteer: Boris Johnson
Boris Johnson’s turbulent two years as UK foreign secretary came to an abrupt end with his resignation on July 9. The conservative had been a key face for the Leave campaign during the 2016 referendum campaign. Johnson disapproves of the “soft Brexit” sought by PM May, arguing that a complete break from the EU might be preferable. He became the second Cabinet member within 24 hours to quit…
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Who’s who in Brexit?
Britain’s cheery ex-delegate: David Davis
David Davis headed Britain’s Department for Exiting the EU and was the country’s chief negotiator in the talks before he quit on July 8, less than 24 hours before Downing Street announced Boris Johnson’s departure. Davis had long opposed Britain’s EU membership and was picked for the role for this reason. Davis was involved in several negotiating rounds with his EU counterpart, Michel Barnier.
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Who’s who in Brexit?
Britain’s former Brexit secretary: Dominic Raab
Raab replaced Davis in early July 2018. But he only lasted four months, resigning a day after Theresa May presented a draft withdrawal plan to her cabinet. Raab previously worked for a Palestinian negotiator in the Oslo peace process and as an international lawyer in Brussels advising on European Union and World Trade Organization law.
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Who’s who in Brexit?
Britain’s turnabout diplomat: Jeremy Hunt
Jeremy Hunt was Britain’s Health Secretary until he replaced Boris Johnson as foreign secretary in early July 2018. The 51-year-old supported Britain remaining in the European Union during the 2016 referendum, but said in late 2017 that he had changed his mind in response to the “the arrogance of the EU Commission” during Brexit talks. He has vowed to help get Britain a “great Brexit deal.”
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Who’s who in Brexit?
Britain’s firebrand: Nigel Farage
Nigel Farage was the leader of the United Kingdom Independence Party (UKIP) until July 2016. Under his stewardship, the party helped pressure former Prime Minister David Cameron into calling the EU referendum. He was also a prominent activist in the Leave campaign in the lead-up to the vote. Farage still has some influence over Brexit talks due to his popularity with pro-Leave voters.
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Who’s who in Brexit?
Brexit’s banker: Arron Banks
Businessman Arron Banks is a friend of Nigel Farage, and donated a significant sum to the former UKIP leader’s Leave.EU campaign – making him the group’s biggest financial backer. He had several meetings with Russian officials ahead of the referendum, but has denied allegations of collusion with Moscow in the Brexit vote, branding the claims a “political witch hunt.”
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Who’s who in Brexit?
Europe’s honchos: Jean-Claude Juncker and Donald Tusk
EU Commission President Juncker (left) and EU Council President Tusk (right) share two of the bloc’s highest posts. Juncker heads the EU’s executive. Tusk represents the governments of the 27 EU countries — the “EU 27.” Both help formulate the EU’s position in Brexit negotiations. What Tusk says is particularly noteworthy: His EU 27 masters — not the EU commission — must agree to any Brexit deal.
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Who’s who in Brexit?
Europe’s steely diplomat: Michel Barnier
The former French foreign minister and European commissioner has become a household name across the EU since his appointment as the bloc’s chief Brexit negotiator in October 2016. Despite his prominence, Barnier has limited room to maneuver. He is tasked with following the EU 27’s strict guidelines and must regularly report back to them during the negotiations.
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Who’s who in Brexit?
Ireland’s uneasy watchman: Leo Varadkar
The Irish PM has been one of the most important EU 27 leaders in Brexit talks. Britain has said it will leave the EU’s customs union and single market. That could force the Republic of Ireland, an EU member, to put up customs checks along the border with Northern Ireland, a British province. But Varadkar’s government has repeatedly said the return of a “hard” border is unacceptable.
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Who’s who in Brexit?
Europe’s power-brokers: the EU 27
The leaders of the EU 27 governments have primarily set the EU’s negotiating position. They have agreed to the negotiating guidelines for chief negotiator Barnier and have helped craft the common EU position for Tusk and Juncker to stick to. The individual EU 27 governments can also influence the shape of any Brexit outcome because they must unanimously agree to a final deal.
Article source: https://www.dw.com/en/brexit-begins-for-real-as-eu-uk-talks-start-what-do-both-sides-want/a-52600217?maca=en-rss-en-all-1573-rdf