The Daily Telegraph

A year on, what’s the next step for May on a Brexit road measured by compromise­s?

- By Peter Foster EUROPE EDITOR

Ayear after she opened the Article 50 process, setting the two-year clock ticking on Brexit, Theresa May can look back at a set of concrete achievemen­ts. Britain has agreed to a €45 billion-€55 billion financial settlement and a deal on Citizens’ Rights to minimise the impact on EU and UK citizens on either side of the Channel: whether you are Polish plumber in Lincolnshi­re, or a British pensioner on the Costa Brava, you can now assume your life will not be upended by Brexit.

On top of these two important pieces of “housekeepi­ng”, Mrs May has also secured a 21-month “transition” deal. Few trade experts think that will be long enough to adapt to the new realities, but it is not unreasonab­le to assume that ways can be found to defer new cliff edges.

So far, so good. But as any mountainee­r knows, the hardest part of reaching the summit is the final ascent.

This is about to begin, and what is striking about talking to key actors in the process, is how uncertain they are about the outcome of what follows next.

The road to Brexit has, thus far, been measured by necessary compromise­s.

The UK has made 80 per cent of the concession­s to deliver a transition deal and open the door to talks on trade and the future relationsh­ip. Such is the coercive power of Article 50’s ticking clock.

The question now facing Downing Street strategist­s is whether the same pattern will repeat itself when it comes to delivering an end-state agreement with the EU.

Which brings us to the pivotal question of Ireland. Were it not for the unavoidabl­e complicati­on of the Irish border, the UK would be free to choose whatever form of Brexit it wanted and reap the benefits or suffer the consequenc­es either way. Ireland makes that impossible.

Before politics, the root of the Ireland Brexit conundrum lies in geographic­al and legal fact: Brexit creates an EU frontier on the island of

‘So far, so good. But as any mountainee­r knows, the hardest part of reaching the summit is the final ascent’

Ireland. Under WTO rules, let alone EU law, the UK cannot exit the EU’S customs union and avoid customs checks on its trade frontiers.

Mrs May has made three commitment­s on this question: to leave the EU customs union, avoid a hard border in Northern Ireland and defend the territoria­l integrity of the United Kingdom by not allowing a customs border to come up in the Irish Sea.

Only two of these three promises can hold true at any one time. This is the Irish trilemma that must be resolved; and on the current timetable, it needs to be done by the June 28-29 European Council.

The UK’S room for manoeuvre is already limited, having conceded the principle of a “backstop” that avoids a return to a hard border via alignment with EU rules and regulation­s.

This is the so-called Option C, where Option A is resolving the problem via the broader UK-EU trade negotiatio­n, and Option B is using technologi­cal solutions, like number plate cameras and trusted trade schemes.

David Davis, the Brexit Secretary, says the UK can solve the problem via Option A and the future trading relationsh­ip, but the Canada-style FTA that the Government is currently seeking does not obviate the need for customs checks.

Brussels is ultra-clear that technical solutions or running a “dual external tariff ” where the UK collects tariffs for the EU on goods destined for the EU and not on others, is technicall­y impossible and will not do the trick. Privately, Whitehall officials agree.

Given Mrs May’s commitment to avoid a border either in Ireland or the Irish Sea, the only logical answer to this question is for a UK-EU trading relationsh­ip to be sufficient­ly “highly aligned” with the EU that technology could, at the margin, fill the gaps.

The hope is that the EU can be persuaded this is a reasonable compromise, given that forcing a border down the Irish Sea would amount to a territoria­l “land grab” by Brussels, and be a step too far for many member states. Mrs May has rightly ruled this “unacceptab­le”.

So as one senior UK negotiator puts it: “There are probably only one or 1.1 different solutions here. It’s Option A, with perhaps a little bit of Option B, which looks very much like the version of Option C that we would sign up to anyway.”

As the hard choices crowd in after Easter, we are about to discover whether Mrs May can sell a level of alignment that is perilously close to the customs union that she has already dubbed a “betrayal” of Brexit.

The alternativ­e is a hard border in Northern Ireland that imperils the Good Friday Agreement or a customs border in the Irish Sea that risks triggering a constituti­onal crisis.

Logic dictates that Brexiteers will soon be facing a dilemma of their own: is any Brexit deal better than no deal at all?

 ??  ?? David Davis, the Brexit Secretary, must resolve the Irish trilemma
David Davis, the Brexit Secretary, must resolve the Irish trilemma
 ??  ??

Newspapers in English

Newspapers from United Kingdom