Q&A
SUMMIT EU negotiator Michel Barnier
What was the Canada-style deal the Prime Minister wanted?
Canada has a full-scale trade deal with the EU. It gets rid of most tariffs on goods traded with the EU and increases quotas. It does not include agreements for the trade in services – and financial services are crucial to the UK economy. This would have to be negotiated in a separate deal. Canada’s took seven years to negotiate.
Is this the same as a no-deal Brexit?
Not quite. Brexit happened on January 31, when the UK left the EU under the Withdrawal Agreement with an 11-month transition period. Other relationships negotiated in this deal will remain in place beyond January 1, including protections for EU citizens living in the UK, and for UK expats in EU nations. But leaving without a trade deal will end the cushioning from the economic reality of Brexit.
Is this the end, or a bargaining tactic?
It seems more like a bargaining tool. Negotiations are still on-going and the PM has, so far, not followed through on his threat to walk away from the talks. If he really wanted to end the talks, he could have done so formally. A European Commission source told the Mirror they were “puzzled” by the PM’s position. They added: “We are in a better place on the substance of negotiations to conclude a deal than we were a few days ago.”
What happens next?
A further round of talks is due in London next week. As of 6pm last night, it was not yet clear if the EU’s chief negotiator Michel Barnier would turn up. Will it mean shop prices will go up? It could. Increased tariffs, quota charges and other barriers to trade are likely to be passed on to the consumer. About 85 per cent of foods imported from the EU will face tariffs of more than five per cent.
Would an Australian-style deal mean lorry parks and border disruption?
Increased border checks risk serious disruption on motorways in the south. The Government has designated 10 sites in Kent, Essex, Birmingham, north Wales and Warrington as holding areas for freight transport to avoid motorway tailbacks. Truckers will also be required to obtain a “passport” to drive into Kent. Health experts say border disruption will risk shortages of vital medicines. The Nuffield Trust says three-quarters of medicines come from or through the EU.