May warned to avoid EU association deal

Britain could ‘potentially’ sign up to deal that critics argue would make country a vassal state of Brussels

Theresa May is considering a catch-all Brexit deal that Eurosceptics are warning will amount to “EU Mark II”. The Prime Minister has told her Brexit Cabinet sub-committee that the UK could “potentially” accept an association agreement which critics say would make Britain an EU “rule taker”. Meanwhile, the Government suffered its most damaging Lords defeat on Brexit to date, as peers passed a “wrecking amendment” designed to keep Britain in the EU.

THERESA MAY is considering signing up Britain to a catch-all agreement with Brussels that Brexiteers fear will amount to “EU Mark II”.

Mrs May told the Cabinet’s Brexit sub-committee that the UK could “potentially” accept an association agreement with the EU, which critics say would make Britain a “rule taker” from Europe. Philip Hammond, the Chancellor, and David Davis, the Brexit Secretary, are also open to the idea, which was first raised at the sub-committee last week. Mrs May suggested an association agreement could be used as a “box” containing the different strands of the Brexit deal.

The Government yesterday suffered its most damaging Lords defeat on Brexit to date, as peers passed a “wrecking amendment” designed to keep Britain in the EU.

The Lords voted by 335 votes to 244 for a “meaningful vote” in the Commons that would give MPS the power to block a “no deal” Brexit. Among those voting against the Government were 19 Tory peers, described by one Brexiteer as a “cosy cabal of Remainers”.

Lord Callanan, a Brexit minister, said that if the amendment was passed in the Commons it would “weaken the UK’S hand in our negotiations with the EU by giving Parliament unprecedented powers to instruct the Government to do anything with regard to the negotiations – including trying to keep the UK in the EU indefinitely”.

Meanwhile the Government last night branded comments made by Lord Roberts of Llandudno likening Mrs May’s approach to Brexit to that of Adolf Hitler in Germany as “disgraceful, irresponsible rhetoric”.

There were two further defeats last night as peers insisted Parliament should be given a say on the Government’s mandate for trade talks with Brussels and the other was aimed at making sure refugees in Europe would continue to be allowed to join family members in the UK.

The Government has now been defeated in the Lords nine times on amendments to the EU Withdrawal Bill, and Mrs May will now try to block them in the Commons.

The idea of an association agreement has been championed by Guy Verhofstadt, the European Parliament’s Brexit chief. These are usually entered into with countries wishing to join the EU, and Brexiteers fear it would be used as a device by the EU to turn Britain into a “vassal state” of Brussels.

Michael Gove spoke against the idea during last week’s sub-committee meeting and Jacob Rees-mogg has described association agreements as “second-tier EU membership”. But Mrs May, Mr Hammond and Mr Davis are understood to have been persuaded that “specific terms and frameworks” are less important than the final objective of taking back control of Britain’s laws, money and borders. One Whitehall source said: “The feeling now is that the precise legal structure is less important than what it achieves.”

However, Peter Bone, the Tory MP and member of the Leave Means Leave campaign, said: “If we end up with an association agreement like the ones other countries have, then that amounts to EU Mark II.”

Tomorrow, the Cabinet Brexit subcommittee will debate which of two options for the Irish border the Government should favour in its negotiations with Brussels.

Mrs May favours a customs partnership with the EU, in which Britain would collect tariffs at the Irish border on behalf of the EU. Mr Gove, together with Boris Johnson, the Foreign Secretary, prefers a combination of technology and trusted trader schemes to avoid a hard border between Northern Ireland and the Republic.