EU offers ‘supercharged’ trade deal
THE European Union is preparing to offer Theresa May a “supercharged” free-trade deal but will reject her demands for frictionless trade, sources have claimed.
The offer from Brussels, which will be put to UK negotiators on Wednesday, is said to contain “30 to 40 per cent” of the demands made in the Prime Minister’s Chequers proposal.
Ireland’s Europe minister suggested yesterday that a deal could be done “in the next 10 days”.
But Government sources made it clear yesterday that Mrs May would not be pressured into softening her Brexit red lines, and, in particular, will not allow a customs border in the Irish Sea.
A Whitehall source accused Brussels of “gamesmanship”, suggesting the EU was putting out positive language so it could blame Britain if no deal is done.
Sources in Brussels suggested the deal would be tariff-free but would only be “as frictionless as possible” because frictionless trade would undermine the integrity of the single market.
In return, the EU wants stronger “level playing field” conditions to make sure the UK does not gain a competitive advantage in areas such as regulatory standards, employment law and state aid.
The draft agreement on trade could be fewer than 10 pages long, with full details to be thrashed out during the 21-month transition period, according to sources in Brussels.
The deal appears to be dependent on Mrs May accepting different customs arrangements in Northern Ireland and mainland Britain, a situation which she has already ruled out.
Helen Mcentee, Ireland’s Europe minister, said: “I think in the next 10 days if there is a proposal, on its own it won’t resolve the border issue, but if something is legally sound and workable, I believe the (EU’S Brexit) task force will work with Mrs May.
“The Prime Minister wants to reach an agreement because this is the best outcome for all of us. A cliff-edge or a no-deal scenario is something we shouldn’t even contemplate. Where the will is there it can be done, and I believe the will is there.”
Mrs May will travel to Brussels on Oct 18 for a meeting with the other 27 EU leaders. Olly Robbins, her chief negotiator, will have talks before then, with British sources suggesting the route to a deal may become clear by the end of next week.
Donald Tusk, the president of the European Council, has said the EU is ready to offer the UK a “Canada plus” trade deal, but it would also mean a customs border in the Irish Sea, which is a red line for Mrs May.
A senior Whitehall source told The Daily Telegraph: “This is gamesmanship by the EU. Britain’s position has not moved at all, and the EU will need to compromise if a deal is to be done.”