HOPES RISE FOR BREXMAS MIRACLE
‘Narrow path to a deal’ as EU drops calls for instant tariffs on UK goods
HOPES for a Brexit trade deal were rising last night after the EU softened its stance on tariffs.
Sources involved in the talks said Brussels had dropped demands for the power to impose instant ‘lightning tariffs’ if the UK diverges from the bloc’s rules.
In signs of a breakthrough, the two sides are now attempting to thrash out the details for an independent arbitration system for future complaints from either side. The EU’s chief negotiator Michel Barnier claimed the UK had made the first move, accepting ‘for the first time’ that Brussels should have the right to take action if the independent UK strays too far from the single market’s ‘level playing field’.
In a briefing to MEPs, Mr Barnier even suggested that a trade deal could be struck this week if the long-running row over fishing rights can be resolved. One EU source said: ‘There might now be a narrow path to an agreement visible if negotiators can clear the remaining hurdles in the next few days.’
Downing Street struck a more downbeat tone. One i nsider accused Mr Barnier of ‘ playing games’ – and suggested No Deal remains the most likely outcome.
A government source said: ‘Talks remain difficult and we have not made s i gnificant progress in recent days, despite efforts by the UK side to bring energy and ideas to the process.’ They added that Boris Johnson would not sign up to anything that locked Britain into following EU laws ‘by the back door’.
They insisted there was ‘no truth’ to recent claims emanating from Brussels that the PM had backed down over fishing. ‘The inaccurate briefings from the EU side have made a difficult discussion even more challenging in the short period of time we have left,’ they said.
Former Brexit minister David Jones welcomed yesterday’s signs of a Brussels climbdown – but warned Mr Johnson not to offer any last-minute concessions that would limit Britain’s long-term freedom.
Mr Jones, a leading member of the European Research Group of Tory MPs, said: ‘ It appears that EU demands have moderated and that the prospect of an acceptable deal has improved. That is good. However, we have made this progress only because the UK has shown it refuses to be bullied. We must con
‘Companies are getting anxious’
tinue to stand firm and be prepared to walk away if necessary.’
Trade talks were thrown into chaos earlier this month after Mr Barnier – under pressure from French premier Emmanuel Macron – tabled demands for the unilateral right to impose lightning tariffs on the UK.
British sources said the proposal would have made Brussels ‘judge and jury’. Under the compromise plans now under discussion, each side will have the right to seek redress if the other is cutting standards in areas such as workers’ rights and the environment which would distort trade.
The two sides remain far apart on fishing. Brussels says it will only accept modest changes to its access to British waters – phased in over a decade. Further complicating matters is a suggestion from Mr Barnier that the EU should have the right to impose tariffs on British goods if EU trawlers have their access reduced further in the future. ‘We don’t want to end up like the Wild West,’ he said, warning: ‘There will be consequences for closing fishing waters.’
Amid complaints from MEPs that they have been cut out of the negotiation process, Mr Barnier told them talks could go on until the end of the month – which could leave EU leaders and the European Parliament unable to rubber-stamp a deal before the Brexit transition period ends on
December 31. ‘ That would mean a fairly short period of No Deal we would have to manage before ratification,’ he said.
France’s Europe minister called for talks to accelerate. ‘It will be very difficult to go beyond the end of the week,’ Clement Beaune said. ‘ Not just because of ratification, but because we need two weeks to organise. Companies are getting anxious. We cannot get to 5pm on December 31 without companies knowing what will happen the next day.’
European Commission president Ursula von der Leyen suggested there had been good progress and that both sides could be close to finalising an accord. ‘We are on the very last mile to go,’ she told an OECD event in Paris.
Ireland’s Taoiseach said both sides are aware of the ‘enormity and severity’ of the effects No Deal would have on their economies. ‘They have really sought to crack the “level playing field” issue along with fisheries and, crucially, this dispute mechanism that would underpin any level playing field framework,’ he said. However, Micheal Martin warned it remains difficult for the EU and UK to ‘square the circle’.