Britain, EU reach post-Brexit trade deal ahead of deadline
BRUSSELS — Just a week before the deadline, Britain and the European Union struck a free-trade deal Thursday that should avert economic chaos on New Year’ s and bring a measure of certainty for businesses after years of Brexit turmoil.
Once ratified by both sides, the agreementwill ensure Britain and the 27-nation bloc cancontinue to trade in goods without tariffs or quotas after the U.K. breaks fully free of the EUonJan. 1.
The Christmas Eve breakthrough was doubly welcome amid a coronavirus pandemic that has nearly 70,000 people in Britain dead and led the country’s neighbors to shut their borders to the U. K. over a new and seemingly more contagious variant of the virus spreading in England.
“Wehave taken back control of our laws and our destiny ,” declared British Prime Minister Boris Johnson, who posted a picture of himself on social media with thumbs up.
European Commission President Ursula von der Leyen said from Brussels: “It was a long and winding road, but we have got a good deal to show for it.”
The EU member countries and the British and European parliaments still need to vote on the agreement, though action by the European body may not happen until after the Jan. 1 breakup. Britain’s Parliament is set to vote Wednesday.
France, long seen as Britain’s toughest obstacle to a deal, said the uncanny steadfastness among the 27 nations with widely varying interests was a triumph in itself.
“European unity and firmness paid off,” French President Emmanuel Macron said in a statement.
And German Chancellor Angela Merkel said that unity will now probably result in all the EU nations backing the deal: “I am very optimistic that we can present a good result here.”
It has been 4 ½ years since Britons voted 52% to 48% to leave the EU and—in the words of the B rexiteers’ campaigns logan —“take backcontrol” of the U.K.’s borders and laws.
It took more than three years of wrangling before Britain left the bloc’s political structures last January. Disentangling the two sides’ economies and reconciling Britain’s desire for independence with the EU’ s aim of preserving its unity took months longer.
The devil will be in the detail of the 2,000-page agreement, but both sides claimed the deal protects their cherished goals. Britain said it gives the U.K. control over its money, borders, laws and fishing grounds and ensures the country is “no longer in the lunar pull of the EU.”
Von der Leyen said it protects the EU’s single market and contains safeguards to ensureBritain does not unfairly undercut the bloc’s standards.
If Britain were to quit the EU with no agreement governing trade, the two sides would reinstate tariffs on each other’s goods.
Johnson’s government acknowledged that a chaotic no-deal exit would probably cause gridlock at the country’s ports, temporary shortages of some goods and higher food prices. The turmoil could also cost hundreds of thousands of jobs.
To avoid that, negotiating sessions alternating between London and Brussels—and sometimes disrupted by the pandemic —- gradually whittled differences between the two sides down to three key issues: fair-competition rules, mechanisms for resolving future disputes, andfishingrights.
The EU has long feared that Britain would slash social, environmental and state aid rules after Brexit and gain a competitive advantage over the EU. Britain denies planning to institute weaker standards but said that having to follow EU regulations would undermine its sovereignty.
A compromise was eventually reached on the tricky “level playing field” issues. That left the economically minor but hugely symbolic issue of fishing rights as the finalsticking point, with maritime EUnations seeking to retain access to U.K. waters. Under the deal, the EU will give up a quarter of the quota it catches in U.K. waters, less than the 80% Britain initially demanded. The system will be in place for 5 ½ years, after which quotas will be reassessed.