Daily Mail

Trade talks start now

We’re well on the road to Brexit, declares May as EU bosses give green light

- From John Stevens and Mario Ledwith in Brussels

THERESA May yesterday said Britain was ‘well on the road’ to Brexit as the European Union gave the go-ahead for trade talks to begin immediatel­y.

EU leaders confirmed that ‘sufficient progress’ had been made in the first phase of negotiatio­ns, which centred on citizens’ rights, the Irish border and the £39 billion divorce bill.

The Prime Minister said the decision unlocked discussion­s on a future trade deal and represente­d ‘an important step on the road to delivering the smooth and orderly Brexit that people voted for in June of last year’.

She said Britain would be ‘ beginning the talks about our future relationsh­ip straight away’, adding: ‘There is still more to do but we are well on the road to delivering a Brexit that will make Britain strong, prosperous and secure.’

However, Spain last night warned that it could try to use the next phase of talks to hold Britain to ransom over Gibraltar.

British officials will begin ‘scoping talks’ on what a future trade deal with the EU could look like immediatel­y, before the negotiatio­ns begin formally in March.

Discussion­s on the terms of the transition period – which will run for about two years after Brexit day on March 29, 2019 – will start in the New Year.

European Council president Donald Tusk yesterday said Mrs May’s goal of concluding negotiatio­ns by March 2019 was achievable, adding: ‘It is still realistic and of course dramatical­ly difficult.

‘For sure, the second phase will be more demanding, more challengin­g than the first phase.’

The leaders of the 27 EU member states that will remain after Brexit agreed to move negotiatio­ns forward yesterday following a recommenda­tion from the European Commission last week.

Mr Tusk announced the decision, which was made in a meeting without Mrs May, on Twitter, writing: ‘EU leaders agree to move on to the second phase of Brexit talks. Congratula­tions PM Theresa May.’

Earlier, Mrs May had won applause from her counterpar­ts as she assured them over dinner on Thursday evening of her determinat­ion to see Brexit through.

European Commission JeanClaude Juncker said the gesture was acknowledg­ement that ‘ she did make a big effort and this has to be recognised’. He praised Mrs May as a ‘tough, smart, polite and friendly negotiator’.

A French source said Mrs May had told the gathering she had put ‘lots of political capital’ into the talks, and that ‘leaders wanted to show their support.’ But the good news about Brexit talks moving forward was tempered by the warning from Spain. Its leader Mariano Rajoy cast doubts about an early deal on the transition period by insisting that she must first reach an agreement over Gibraltar. The country has an effective veto on a trade deal unless an agreement is reached on the future of ‘the rock’, which many fear could lead to a land grab.

The subject was not expected to come up until the end of trade talks, but Mr Rajoy said a potentiall­y explosive deal will need to be thrashed out within months during talks on transition.

‘ Whatever future agreement between the EU and the UK, there has to be an agreement between Spain and the UK for that to apply to Gibraltar,’ he said.

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