Business World

Round 1: Brexit talks start in Brussels with 20 months to go

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BRUSSELS — British and European Union (EU) envoys on Monday began a first round of negotiatio­ns on Britain’s divorce from the EU with both sides saying it was high time to tackle details, though feuding within the London cabinet over Brexit terms may trouble the process.

With little more than a year to decide the terms before Britain leaves, deal or no deal, on March 30, 2019, the 27 other EU national leaders want British Prime Minister Theresa May to rally her polarized nation — and her fractious cabinet — swiftly behind a clear, detailed Brexit plan.

EU leaders are keen to minimize economic and social disruption across Europe as its second biggest economy cuts loose from the continent after four decades of myriad links.

Chief EU negotiator Michel Barnier will press UK Brexit Secretary David Davis to agree to Britain covering substantia­l, existing British financial commitment­s and offer more detail on Britain’s approach, clouded by infighting within Ms. May’s cabinet.

“We made a good start last month but... we are now getting into the substance of the matter,” Mr. Davis told reporters as he was welcomed at the European Commission in Brussels by Mr. Barnier, a little more than a year after Britons voted by a narrow majority to leave the EU.

Messrs. Davis and Barnier shook hands for the cameras at the European Commission’s Berlaymont headquarte­rs before a first full session of a scheduled four days of talks.

“We will now delve into the heart of the matter. We need to examine and compare our respective positions in order to make good progress,” Mr. Barnier told reporters.

Mr. Davis said it was “incredibly important” to make progress, “that we negotiate through this and identify the difference­s so that we can deal with them and identify the similariti­es so that we can reinforce them.”

“Now it’s time to get down to work and make this a successful negotiatio­n,” he said before Messrs. Davis and Barnier headed off for talks.

Both men declined further comment, with Mr. Barnier saying they would brief the media on Thursday after their teams have spent four days tackling a range of priority issues.

After a June snap election in which Ms. May’s Conservati­ves lost their majority, her cabinet appears bitterly divided over the type of outcome it wants from the Brexit talks. Finance minister Philip Hammond has emerged as the champion of a “soft Brexit” prioritizi­ng trade ties with the EU over curbing immigratio­n.

He said he came under attack at the weekend from hardline Brexiteers “who are not happy with (my) agenda” after a series of cabinet leaks intended to undermine him.

But he suggested his view that Britain would require a gradual transition towards Brexit aimed at limiting the damage for business and jobs was now gaining traction in Ms. May’s government.

Mr. Barnier, who secured Mr. Davis’ consent last month to the EU’s broad structure for talks, wants to hold the Englishman publicly to whatever else has been agreed during the week, EU officials say.

Working groups will focus on three areas: citizens’ rights; the EU demand that Britain pays some €60 billion ($69 billion) to cover ongoing EU budget commitment­s; and other loose ends, such as what happens to British goods in EU shops on Brexit Day.

Mr. Davis’ office described an offer made by Britain last month on citizens’ rights as “fair and serious.” But Mr. Barnier has dismissed it as falling short of the EU demand that its three million citizens in Britain keep all their existing rights for life and have recourse to the EU courts to enforce those rights even after Britain has left.

A fourth set of talks, run by Messrs. Davis and Barnier’s deputies Oliver Robbins and Sabine Weyand, will focus on curbing problems in Northern Ireland once a new EU land border separates the British province from EU member Ireland to the south. Some of that will have to wait for clarity on future trade relations.

One key early advance that EU officials hope for this week is for Britain to stop challengin­g the principle that it will owe Brussels money — though how much will have to be argued over and cannot be calculated until Britain actually leaves.

Three more weeks of talks, interspers­ed with internal EU sessions to coordinate the views of the 27 other government­s, are scheduled, from late August until early October. At that point, Mr. Barnier hopes to be able to show “significan­t progress” on the divorce priorities for EU leaders to give him a mandate to launch negotiatio­ns on a future free trade agreement.

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