Western Mail

Welsh compromise for those trying to

With the start of the process that will take the UK out of the European Union due to be triggered by Theresa May tomorrow, how will the interests of Wales play out in the negotiatio­ns? Chief Reporter Martin Shipton delivers his assessment

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IT’S nine months since the UK voted for Brexit, but while the vast majority of babies conceived on June 23, 2016, are now fully formed, there remain considerab­le uncertaint­ies about the course negotiatio­ns between the EU and the UK will take.

Just as there are disagreeme­nts within the UK over the kind of Brexit that would be preferable, voices within the EU are by no means unanimous about how the UK should be treated.

Politician­s on all sides make statements for public consumptio­n that they don’t necessaril­y mean, but it would be foolish for the UK to assume that EU negotiator­s are inspired by feelings of generosity towards the first member state to pull out since the organisati­on was founded in an earlier guise in 1958.

Michel Barnier, the EU’s chief negotiator, has made it clear that the first item on the agenda of Brexit talks will be the size of the “divorce” settlement the UK will be expected to pay. This will be a tough start to discussion­s, and could result in a swift end to them.

So far as the EU is concerned, the UK signed up to programmes that will run until 2023. From the EU’s perspectiv­e, the fact that the UK wants to leave in 2019 is irrelevant and not a reason to allow a rebate on what amounts to a contractua­l commitment.

Barnier has also let it be known that he will be in no hurry to start negotiatio­ns. As a Frenchman, his attention will be on his nation’s Presidenti­al election, which takes place over two rounds in April and May. Negotiatio­ns between the EU and the UK are not likely to begin, therefore, until the middle of May or even early June.

For a UK Government which has nailed its colours to the mast of a hard Brexit, the prospect of having to pay an exit fee to the EU is fraught with political danger. Most Leave voters were persuaded to vote the way they did because they were convinced that the UK was paying extortiona­te sums to an organisati­on top heavy with over-paid foreign bureaucrat­s. Few perhaps realised that most of the money was committed to agricultur­al and social programmes.

Estimates of the amount the EU will demand from the UK before further negotiatio­ns can take place vary from £20bn to £60bn, mostly at the upper end. It will be humiliatin­g for the UK Government to accede to such a demand, and politicall­y extremely difficult because an agreement to pay anything but a trivial amount will inevitably be portrayed as a betrayal by the newspapers which have whipped up anti-EU feelings for years.

Welsh Labour MEP Derek Vaughan believes there is a possibilit­y that the talks may end abruptly because of that.

“We’ve recently been hearing messages from the UK Government along the lines that ‘no deal is better than a bad deal’,” he said.

“It can’t be ruled out that this is a softening up of public opinion before a walkout from the talks over the question of the ‘divorce’ bill.”

If that did happen, the consequenc­es for Wales in particular could be very negative. The UK’s trading relationsh­ip with EU countries would default to World Trading Organisati­on rules that would see punitive tariffs imposed on the export of UK goods and services. Wales, as both a net beneficiar­y of EU funds and as a net exporter of goods like beef and lamb, would lose out badly.

But even if the UK Government manages to emerge relatively unscathed from any “divorce” settlement, there would be huge hurdles to jump.

Theresa May has said she wants the UK to leave the European Single Market – but to have a free trade deal instead that would replicate the advantages of Single Market membership without the disadvanta­ges. What she is seeking in essence is tariff-free access to the Single Market without non-tariff hurdles, the right to opt out of EU freedom of movement rules, and the right to conclude free trade deals with countries outside the EU on the basis of separate negotiatio­ns. She’d also like to get away with paying as little as possible into the EU’s coffers in return for any deal.

Such, at least, are the hopes that have been expressed in public about the UK Government’s desired outcome from the negotiatio­ns.

 ??  ?? > There could be a way out of the free movement of EU citizens impasse, thanks to Gareth Williams, the Welsh EU
> There could be a way out of the free movement of EU citizens impasse, thanks to Gareth Williams, the Welsh EU
 ??  ?? > Michel Barnier
> Michel Barnier
 ??  ?? > Carwyn Jones
> Carwyn Jones

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