Political goodwill is needed from Brussels

There was a distinct sense of déjà vu watching Michel Barnier yesterday setting out the EU’S negotiating position for talks with the UK and warning of difficult months ahead. We have been here before, only then we were still in the bloc and the Government, with no majority, was easily pushed around. Now, the political dynamics have shifted. The EU published its mandate for the trade talks knowing that while Boris Johnson wants to conclude a deal, he is prepared to walk away without one if the terms are unacceptable. It is in the interests of both sides to secure a free-trade agreement on the basis set out in the political declaration attached to the Withdrawal Agreement reached last year to conclude the UK’S 47-year membership of the bloc.

But much will depend on how elements of that declaration are interpreted. The EU takes the view that the UK’S geographical proximity and economic clout rule out a Canada-style agreement because there will need to be far greater conformity of rules and regulations to ensure a “level playing field”. It does not want the UK to steal a march while still getting unfettered access to its markets.

Mr Johnson is adamant that while he wants a close relationship, which is easily achievable since we were in the EU for so long, it cannot constrain the UK from diverging when it wishes. Nor is there any possibility of the UK continuing to accept the judicial suzerainty of the European Court.

These are not necessarily mutually exclusive unless intransigent positions are adopted. The EU must understand that the UK intends to restore its economic, political and judicial independence, otherwise what would be the point of leaving? Nor is there anything to be gained from trying to drag these talks out for years.

Mr Barnier said the tight timetable was a Uk-imposed difficulty as Mr Johnson is insisting upon a deal by the end of the year. But without such a deadline there would be little incentive to get on with it. Equally, the EU side claims to be offering a deal based on open, free and fair competition, coupled with safeguards to avoid unfair advantages in social, environmental, tax and state aid matters.

With political goodwill, it must be possible to achieve an agreement within these parameters and time frame. However, if the EU’S principal intention is to shield its creaking economy from competition then we will not get anywhere.