EU is expecting May to return with an improved offer over Brexit
The European Union is ready for an offer from Theresa May that could unlock Brexit trade talks, even as a consensus is forming in Brussels that the trade deal available will not be anything like the “deep and special partnership” the British leader craves.
EU negotiators told envoys on Wednesday that both sides will start work on a joint document setting out the progress that has been made so far, according to a person familiar with the discussion. While there is still scepticism from some members of a breakthrough at a summit mid-December, negotiators anticipate an improved offer on the bill soon, the person said.
The whole point of putting more money on the table is to convince the EU side to move talks on to the future trading relationship. EU members have started talking about what kind of trade deal they will seek with the United Kingdom, and the feeling is that a Canada-style deal can be struck.
That model – while considered the most ambitious of all EU accords – falls short of what the UK has in mind.
The EU chief negotiator Michel Barnier cast doubt this week about the kind of trade deal the UK could aspire to if it is not willing to commit to staying close to EU regulation.
The UK wants the best trade deal that has ever been struck with the EU – with financial services included – and on top it also seeks accords with countries such as the US – where regulations are dramatically different to those of the bloc. Trade experts say nations cannot enjoy both privileges.
“It is not only about rules or laws. It is about societal choices – for health, food standards, our environment and financial stability,” Mr Barnier said on Monday.
More than a year after the referendum that triggered Brexit – and with just 16 months to go until the UK departs – negotiations have still not broached trade, nor the crucial transition period that businesses are crying out for to smooth the exit process.
Britain’s parliament will debate the Brexit withdrawal bill on December 4, and on a further four days in the month, the leader of the House of Commons said yesterday.
The EU Withdrawal Bill, which faces much opposition in parliament, aims to sever political, financial and legal ties with the bloc and “copy and paste” many European rules and regulations into British law after the country leaves the EU.
If an agreement is not reached in December so that trade talks can start, the chances of a chaotic break-up increase.
While the UK has made clear it is preparing to offer more cash, the issue of the Irish border could still derail progress. Both sides have said it is up to the other to propose solutions, while all options proposed so far are unacceptable to either.