Boris rips up EU’s post-Brexit deal
Talks stall before they even start as Brussels demands control over UK’s tax rules
BORIS JOHNSON has rejected out of hand the EU’s demands for a post-Brexit trade deal after Brussels negotiators insisted they should retain control over British tax rules and state subsidies.
David Frost, the Prime Minister’s chief Brexit negotiator, is this weekend finalising the UK’s demands for the deal, which must be secured by the end of this year to avoid a No Deal Brexit. Tory sources say Mr Frost and his team have been infuriated by the EU’s demands in their draft mandate. Mr Frost plans to use a lecture to students and academics in Brussels tomorrow to say that the demands far outstrip terms the EU has struck with countries such as Canada, Japan and Korea.
A source said: ‘We are not asking for a special, bespoke or unique deal – just the same requirements that the EU has agreed with other like-minded countries. But as things stand, the EU will seek to police UK subsidies, impose rules on the UK’s tax regime and ask the UK to commit to aligning with the EU’s standards for ever.
‘On subsidies, the EU are asking that we adhere to the EU’s rules for ever, and that they have jurisdiction over how these rules are enforced in the UK.
‘On tax, the EU want us to agree to comply with their tax standards and participate in their cross-border tax planning arrangements. This is ridiculous.
‘Such commitments are outside the scope of normal negotiations and so we will be pushing back to protect UK industries.
‘Asking for alignment on standards doesn’t make sense when the EU’s standards fall below the UK’s in many areas of workers’ rights, environmental protections and health and safety.’
Mr Frost plans to point out to his Brussels counterparts that, for example, the EU removed 99.5 per cent of tariffs in its deal with Korea, 99 per cent with Japan and 98.7 per cent with Canada – and did not expect ‘regulatory alignment’ with any of those countries.
The tough EU line is being driven particularly by French President Emmanuel Macron, who is pushing for the UK to be forced to make stronger commitments on regulatory alignment in return for maintaining free trade.
Mr Macron’s stance has led to concern among some member states that the ‘negotiating avenues’ could be closed off even before the two sides sit down to talk in the first week of March.
A Conservative source said: ‘The UK will take a proactive position in the future trade discussions.
‘We have a strong mandate to get Brexit done, get a future trade deal and focus on sovereignty.
‘This is in line with EU trade deals they have done before – and we expect the same to apply to us.’