‘Frictionless trade’ impossible with Brexit, UK told

BRUSSELS: The European Union’s (EU) chief Brexit negotiator Michel Barnier warned British ministers and businesses who are calling for “frictionless trade” with the EU after Britain leaves that that is “not possible.”

Addressing an EU business forum, here, yesterday, Barnier said London’s “red lines” for a future trade relationship meant Britain was definitely leaving the single market and the customs union, while only membership of both permitted the current “frictionless” trading arrangements.

Barnier said that he was unsure the EU’s refusal to grant single market access piecemeal and insistence on control of standards in the single market “have been fully understood across the Channel”.

“I have heard some people in the United Kingdom argue that one can leave the single market and keep all of its benefits — that is not possible,” he said.

“I have heard some people in the United Kingdom argue that one can leave the single market and build a customs union to achieve ‘frictionless trade’ — that is not possible.”

Stressing that time was tight for a deal by the time Britain will be automatically out of the EU on March 30 2019.

Barnier said he was ready to handle a failure of talks and “no deal” but that would be damaging and he saw “no reasonable justification” for it.