From divorce bill to our borders: What’s in deal

EIGHTEEN months after the talks began, both sides finally agreed a Brexit withdrawal agreement this week, which was shown to Cabinet ministers on Tuesday night. As the final text was published last night, JACK DOYLE examines what it says – and what it means.

NORTHERN IRELAND BACKSTOP

A UK-EU customs union, with Northern Ireland staying in single market rules, and new checks on agricultural produce crossing the Irish Sea. Mrs May successfully killed off an EU demand for a Northern Irelandonly backstop which she warned was tantamount to breaking up the Union, but at what price? The EU eventually accepted a ‘temporary’ agreement for the whole of the UK to stay in a customs union. The deal appears to be bad news for the DUP, whose ten MPs prop up Mrs May’s government. Their fears that the province will be treated differently from the rest of the UK appeared well founded.

The document says Northern Ireland would align with all single market rules – but with no influence over them. There will also be more checks on live animals and other produce crossing the Irish sea. Checks would be carried out by UK officials and mostly at source but some will take place at port – a red rag to the DUP. Northern Ireland will also have to follow EU VAT rules on goods.

EXIT CLAUSE

AN independent panel to rule on when the UK can leave the customs backstop to ensure it is ‘temporary’ – but no unilateral exit. Mrs May’s demand for an independent panel to decide on when the customs union backstop can end, and to stop the UK being ‘trapped’. Under Article 20, the UK would notify the EU if it believes the backstop is no longer needed. Within six months, the panel would decide if the EU was not acting in good faith over a solution to the Irish border problem.

Designed to ensure the EU could not unreasonably block the UK from leaving, it is still well short of the unilateral break clause many Cabinet ministers have demanded. The panel will be made up of two representatives from each side plus an independent person – likely to be judges. Attorney General Geoffrey Cox – who proposed the solution – reportedly suggested the it is not legally watertight. senior Government officials insisted there have been major changes to the text to ensure the backstop is temporary.

REGULATIONS

UK to stay close to EU rules on workers’ rights, the environment and tax. THE price the UK has paid for this customs backstop is to agree to great swathes of EU rules designed to ensure a ‘ level playing field’ which are contained within a ‘large annexe’ to the agreement. Mrs May has said she wants the UK to follow a ‘common rulebook for goods and farm products in the trade deal. But the agreement is expected to cover many other matters including state aid rules – subsidises for industry – workers’ rights, competition policy, environmental rules and tax, which Brexiteers – and some remainers - warn means following Brussels regulations we cannot influence. The document suggests European judges will have jurisdiction in the UK over the EU customs code, technical regulations, VAT and excise, agriculture and the environment, single electricity market and state aid, in the backstop.

TRANSITION

THE transition could be extended – once – beyond 2021 FOr the first time, the UK has accepted the transition period may have to be extended. There will be a final – as yet unspecified – date beyond which it must end. Currently the date reads 20XX in the document but must be agreed before the deal reaches Parliament. Designed to avoid a Brexit ‘cliff edge’, the transition period acts as a bridge in which negotiations can resume on the future deal. A mechanism has also been agreed to calculate future payments beyond 2021. Calls from Cabinet Brexiteers for the cash to be linked to the future deal appear to have failed.

DIVORCE BILL

£39 billion divorce payment THE UK will pay around £39billion, but payments will become due over time. Half the cash pays for a ‘transition’ period between now and the end of 2020, when very little will change and the UK will stay within EU rules and institutions. Government officials said this was a ‘fair’ financial settlement and pointed out the EU began the talks asking for much more.

FREEDOM OF MOVEMENT

END to free movement A key demand for many who voted Leave, and something Mrs May would not compromise on. Future immigration rules – to come in when transition ends – were not included in the withdrawal negotiations, so the UK has flexibility to set its own. The EU will push for preferential treatment in return for a better trade deal. Existing rights of three million EU citizens in the UK and the million Britons living in Europe have been guaranteed.

FISHING

UK free to set quotas THE deal on fishing is a win for Mrs May and will allow the UK to independently negotiate access to its waters and quota shares. Member states such as France and the Netherlands whose fishermen access UK waters demanded continued access. Instead, fishing terms will be negotiated separately. The EU will call for continued access in return for giving the UK market access to sell its fish products, where the British industry exports around 75 per cent of its haul. Thirteen scottish Tory MPs said yesterday they could not support a deal which ‘would prevent the UK from independently negotiating access and quota shares’. No deal has been made on import tariffs, meaning the EU could charge UK fishermen for selling on to the continent.

FUTURE DEAL

TARIFF and quota-free trade, some security co-operation THE ‘ political declaration’ on future trade and security arrangements runs to around five pages and is not legally binding. Ministers hope this will be beefed up before MPs are asked to vote next month. Both sides have agreed there will be zero tariffs and quotas on trade between them, which No10 says is a victory. One senior official said the UK would will be ‘the only major advanced economy’ with that relationship with the EU. On security, a deal has been reached to share number plate information, fingerprints and DNA records but not data on wanted criminals. There will be visa-free travel for tourists and short term business visitors.