UK ‘should show ambition in talks’

A LEADING politician in Europe has claimed greater ambition should be shown to secure a trade deal in the wake of Brexit after Prime Minister Boris Johnson hinted that the UK was willing to accept a compromise agreement.

Mr Johnson’s suggestion that the UK could be prepared to accept an Australian-style relationship with the European Union without a formal trade deal has “surprised” many senior figures in Brussels.

The European Commission’s president, Ursula von der Leyen, pointed out that even Australia wants a better trading relationship with the bloc than the one it currently has.

She added that the UK and EU should be “way more ambitious” about reaching a full trade deal.

In a speech setting out the UK’s negotiating objectives, Mr Johnson said the question was whether to seek a Canadian-style deal or an Australian-style relationship, “and I have no doubt that in either case the UK will prosper”.

But speaking in the European Parliament, Ms von der Leyen said both models fell short of a deal which would meet the goals of allowing trade without tariffs and quotas.

That aim, set out in the Political Declaration, would require a “level playing field” with both sides guaranteeing “fair competition and the protection of social, environmental and consumer standards”.

She said: “We are ready to discuss all different models of trade agreement. But all these models, whatever you choose, have one thing in common – they all come not only with rights but also with obligations for both sides.”

The Canada deal eliminates most, but not all, tariffs and quotas and “we still have our standards that have to be respected”, she said.

Ms von der Leyen added: “Honestly, I was a little bit surprised to hear the Prime Minister of the United Kingdom speak about the Australian model. Australia, without any doubt, is a strong and a like-minded partner. But the European Union does not have a trade agreement with Australia.

“We are currently trading on WTO terms and, if this is the British choice, well, we are fine with that, without any question.”

But she maintained the EU was trying to negotiate a trade deal with Australia to end the current situation, and added: “Of course the UK can decide to settle for less, but I personally believe that we should be way more ambitious.”

Ms von der Leyen’s speech in Strasbourg came as the Government set out further details of its plans for January 1 2021 after the Brexit transition period expires.

Chancellor Sajid Javid said the Government will aim to conclude a full range of equivalence assessments by June – allowing the UK and EU to respect each other’s rules. But he said the UK would also have the freedom to regulate in a different way from the rules set in Brussels.

However, Brussels’ chief negotiator Michel Barnier said: “I would like to take this opportunity to make it clear to certain people in the United Kingdom bearing authority that they should not kid themselves about this - there will not be general, open-ended, ongoing equivalence in financial services.”

Shadow Chancellor John McDonnell feared there was a “risk” that investors and banks could leave London if the Government did not seal a deal on financial services with the EU “quickly”.

We are ready to discuss all different models of trade agreement.

Ursula von der Leyen, president of the European Commission.