Britain, EU reach landmark deal on post-Brexit transition period

BRUSSELS : Britain and the European Union on Monday reached a landmark deal on a transition phase that will last for nearly two years after the historic Brexit divorce next year, EU negotiator Michel Barnier said.

The two sides also agreed on a “backstop” solution for the thorny issue of the future of the Irish border, just weeks after Prime Minister Theresa May said no British premier could ever accept such an idea.

After an “intensive” weekend of talks in Brussels, Barnier said the two sides were “in agreement on a large part” of the divorce treaty governing the terms of Britain’s departure after four decades of membership.

The transition will begin on Brexit day -- March 29, 2019 -- and last until December 31, 2020, and during that period, Britain “will no longer participate in the European Union decision-making process,” Barnier said.

“Nevertheless, it will preserve the benefits, the advantages of the single market and the customs union... and will therefore be required to respect all the European rules just like all member states do.”

The purpose of the transition period is twofold: to give businesses and citizens time to adjust to life after Brexit, and to give Britain and the EU more time to agree on a trade deal.

Britain also agreed in principle to the EU’s “backstop” plan for the status of the Irish border, under which British-ruled Northern Ireland would remain part of the EU’s customs union if there is no better idea.

The thorny issue will, however, require further talks to be fully resolved, the two sides said.