Scottish Daily Mail

So what’s in the deal Mrs May got them to agree?

- By Ian Drury HOME AFFAIRS EDITOR

FUTURE TRADE DEAL

THE 26-page political declaratio­n makes clear that both sides want an ‘ambitious, comprehens­ive and balanced’ agreement covering goods and financial services. There would be zero tariffs on goods imported from the EU into the UK under an arrangemen­t that goes ‘well beyond’ that between the EU and other countries.

The document also recognise ‘the developmen­t of an independen­t trade policy by the UK’, paving the way for the country to signs deals with other countries.

But it also says that both sides should seek to ‘build and improve’ on the single customs territory in the withdrawal agreement that sets out the terms of the UK’s departure from the EU.

Brexiteers are concerned that would bind the UK so firmly into EU rules on goods – a future deal that resembles the customs union.

Staying in close alignment to EU rules was the price for reducing any damage to trade from ‘friction’ at the border and protecting industries which rely on swift movement of parts, such as car manufactur­ers.

Controvers­ially, it says the UK should be bound to the same standards as the EU over ‘state aid, competitio­n, social and employment standards, environmen­tal standards, climate change, and relevant tax matters’.

It also reminds the UK that the more economic rights it retains, the more obligation­s it will be forced to take on board.

TRANSITION PERIOD

THE transition period before Britain leaves the EU could be extended until the end of 2022 – six-and-a-half years after the country voted for Brexit.

The clarificat­ion will irk Brexiteers because the UK could be tied to Brussels rules and pay billions into its coffers for two more years, without having a say over decisions.

But they will be relieved the withdrawal agreement has finally fixed an end date. Previously, the date read 20XX in the document – leading some Brexiteers to warn it could mean abiding by EU regulation­s until 2099. Designed to avoid a Brexit ‘cliff edge’, the transition period acts as a bridge in which negotiatio­ns can continue on the future trade deal.

Last week Mrs May said it was important that the UK is out of the transition period by the next general election, scheduled for June 2022. Calls from Cabinet Brexiteers for the £39billion ‘divorce payment’ to be linked to the future deal appear to have failed, however.

ULSTER BACKSTOP AND ‘MAX FAC’

THE controvers­ial ‘backstop’, where the whole of the UK stays in the EU customs union if there is no deal after the transition period, is still in place. The proposal, demanded by Brussels to protect the single market, would come into force to avoid a ‘hard’ border between Northern Ireland and the Republic. That angered the DUP, whose ten MPs prop up the Government, because the province would follow single market rules on goods – meaning a different regulatory regime, prompting fears of the break-up of Britain. It also sparked anger and anxiety among Brexiteers, who were concerned the UK would effectivel­y be ‘locked in’ to the EU in perpetuity, unable to pursue internatio­nal trade deals.

But in a significan­t victory for Mrs May, the declaratio­n explicitly says that the EU has agreed to the ‘determinat­ion’ to replace this with ‘alternativ­e arrangemen­ts’ to keep the border open.

This revives the so-called ‘Max Fac’ – maximum facilitati­on – technologi­cal solution favoured by Euroscepti­cs that was dismissed many times by the EU.

Other measures, such as the mutual recognitio­n of trusted traders’ programmes and ‘facilitati­ve arrangemen­ts and technologi­es’ to prevent checks at the border ‘will also be considered’. One glitch is that technologi­cal solutions that avoid the need for any border infrastruc­ture are not in operation anywhere in the world. If the backstop is activated, European judges will have jurisdicti­on over how its customs code, technical regulation­s, VAT and excise, agricultur­e and the environmen­t, single electricit­y market and state aid apply in the province.

The separate withdrawal agreement says the UK would not be able to leave the backstop unilateral­ly and would have to apply to an independen­t arbitratio­n panel. No 10 insists it hopes the backstop will never be triggered.

IMMIGRATIO­N

CLEARLY the biggest win for the Prime Minister, the declaratio­n promises that free movement of people from between Britain and the EU ‘will no longer apply’. Mrs May was unwilling to compromise on what was a demand for millions who voted Leave. From the end of 2020, Britain will set its own migration rules. Ministers have made clear they want to attract the ‘brightest and best’ high-skilled workers from anywhere in the world. But in return for a better trade deal, the EU is certain to demand preferenti­al treatment. For longer visits, visas will be needed. But the declaratio­n seeks to provide visa-free travel for short-term visits including business and tourism.

Both sides will also allows the other’s nationals to move for the purposes of research, study, training and youth exchanges – a boost for UK universiti­es.

CRIME AND SECURITY

BRITAIN and the EU have not yet managed to nail down a bespoke deal on crime and security cooperatio­n. But both sides have agreed to work towards a ‘broad and comprehens­ive’ partnershi­p, covering threats including terrorism, cyber-attacks and organised crime. They are working towards reaching agreement on exchanging passenger names, DNA, fingerprin­ts, and car registrati­on data.

They are also considerin­g putting in place arrangemen­ts for the UK to access data on the Second Generation Schengen Informatio­n System (SIS II), a database of 76million real time alerts for wanted or missing people.

The UK is likely to co-operate with the EU law and order agencies Europol and Eurojust.

And arrangemen­ts to allow the ‘efficient and expeditiou­s’ extraditio­n of criminals are set to be put in place, currently covered by the European Arrest Warrant.

If no agreement is reached, the EU would suffer because of Britain’s significan­t intelligen­ce and policing capabiliti­es – instrument­al in foiling terror plots on the continent.

FISHING

BRITAIN will be an ‘independen­t coastal state’ for fishing rights. Mrs May also told MPs there would be ‘unfettered sovereignt­y’ over UK waters.

Ditching membership of the unpopular Commons Fisheries Policy, Mrs May says she will not ‘trade away’ fishing rights. But there are concerns because the document proposes a ‘new agreement on access to waters and quota shares’, negotiated annually.

It urges the two sides to use their ‘best endeavours’ to sign a deal on fishing rights by July 2020, to be in place by the beginning of 2021. Fishing rights are seen as totemic for many Brexit supporters, but EU member states such as France will lobby vocally for access to UK waters.

EU JUDGES

MRS May insists that the UK will regain control of its laws after Brexit. However, the declaratio­n makes clear that the European Court of Justice will still have a significan­t role in British affairs – even if direct jurisdicti­on will end.

Echoing the divorce deal, disputes between Britain and an EU country will be resolved involving a joint committee and an independen­t arbitratio­n panel.

But if the issue involves interpreta­tion of EU law – and there will be plenty in any future relationsh­ip – it will be referred to the ECJ for a ‘binding ruling’.

Needless to say, the proposal has gone down badly with Brexit supporters.

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