18 December 2019

Financial Times: Brussels warns UK will suffer more from lack of EU trade deal

Britain will suffer more than the EU if the two sides cannot broker a trade deal by the end of next year, the president of the European Commission has warned in a response to Boris Johnson after the UK prime minister ruled out extending talks.

Ursula von der Leyen said the timetable for building a future relationship with Britain was “extremely challenging”, given that the UK’s post-Brexit transition period will expire at the end of 2020. She said negotiators would do their best in the “very little time” available. [...]

Speaking to the European Parliament on Wednesday, Ms von der Leyen made clear that the UK stood to bear the brunt of the damage if a deal were not reached in time. “In case we cannot conclude an agreement by the end of 2020, we will face again a cliff-edge situation,” she said. “This would clearly harm our interest but it will impact more the UK than us, as the EU will continue benefiting from its single market, its customs union and the 700 international agreements we signed with our partners.” [...]

Speaking in the same European Parliament session, Michel Barnier, the EU’s chief Brexit negotiator, made clear that the entire future relationship negotiation could not realistically be wrapped up by the end of 2020.

“We can’t do it all, but we will give it our all,” he said. “If we want to give this relationship all its dimensions, we need to give it more time and continue beyond the end of the transition, continue to work with the British and negotiate,” he said.

On the trade negotiations, Mr Barnier said the EU’s willingness to open its market would depend on how far Britain was willing to stick close to the union’s regulatory standards.

“Does it want to distance itself, and if so how far, from our regulatory model?” Mr Barnier said. “It is the answer to this question that will determine our level of ambition.”

Ms von der Leyen said Brussels would organise negotiations “to make the most of this short period” before the end of 2020. Brussels hopes that its draft mandate for the negotiations will be approved by EU governments in February, allowing talks to begin on March 1. [...]

Commission officials on Tuesday briefed EU27 diplomats that, for legal reasons, it would be difficult to grant an extension after July 1, even if trade negotiations were bogged down in the second half of the year and both Britain and the EU agreed that more time was needed.

Two EU officials told the Financial Times that a British extension request made after July 1 would need to be handled through the negotiation and ratification of a new international treaty.

A cliff-edge scenario “is clearly not in our interest”, Ms von der Leyen said, adding that she hoped that Britain and the EU would be able to build “an unprecedented partnership”.

Full article on Financial Times (subscription required)

Speech by President von der Leyen in the Plenary of the European Parliament at the debate on the conclusions of the European Council meeting of 12 and 13 December 2019

 

© Financial Times