Brexit trade talks will start by Xmas

TALKS on a new trade deal with Europe will begin by Christmas, EU leaders have told Theresa May.

Tory sources said the Prime Minister was increasingly confident that her speech in Florence last month had secured a breakthrough in talks with Brussels.

EU leaders are due to decide this month whether ‘sufficient progress’ has been made on the Brexit divorce bill, citizens’ rights and Northern Ireland to allow trade negotiations to start – but senior Tories do not expect to get the green light.

However, EU leaders have indicated to Mrs May that they expect to begin talks on the ‘future relationship’, including a new free trade deal, by the end of this year.

Mrs May held meetings with EU leaders in the run-up to her Florence speech to brief them on her thinking, and held a private meeting with German Chancellor Angela Merkel on Friday. A senior Tory source said the

‘A growing sense of momentum’

PM had been pleased with the reaction to her speech, adding: ‘The mood on Brexit is much more positive than the public pronouncements you hear, particularly from the European Commission.

‘There is a growing sense of people feeling a bit more momentum and wanting to get on to looking at the future partnership.’ Asked if the PM thought trade talks would begin by Christmas, the source said: ‘Yes.’

This upbeat tone contrasts with the verdict of European Commission president JeanClaude Juncker, who warned last week it would take a ‘miracle’ to move to trade talks in the coming months.

But ministers believe significant progress has been made during the four rounds of negotiations with Brussels. Sources said a deal on guaranteeing the rights of EU citizens was ‘close’. EU leaders have also welcomed Mrs May’s confirmation in Florence that the UK will pay into the Brussels budget during a two-year ‘implementation period’.

Progress has been slower on Northern Ireland. But ministers believe they are winning the argument that it is impossible agree arrangements at the Irish border until both sides know the details of customs arrangements that will be finalised in trade talks.

Senior Tories fear inconclusive German elections last month could leave Mrs Merkel distracted by coalition talks. But they insisted they did not rely on the German Chancellor riding to Britain’s rescue.

Yesterday, Mrs May said the UK could start to ‘diverge’ from EU rules as soon as we leave in March 2019.

She claimed most areas were likely to remain similar during the transitional period, but added: ‘There are areas where looking to the future we may have the same goals but think of different ways of achieving them.’ She also said ministers were drawing up plans to deal with the consequences of the UK leaving without a deal.

She told the BBC’s Andrew Marr Show yesterday: ‘Government is working on what would need to be put in place if there was no deal. What we’re also working on is ensuring we get a deal and we get the right deal for the UK.’

Meanwhile, pro-EU Tories including former health secretary Stephen Dorrell joined an anti-Brexit rally at the party conference in Manchester.