All aspects of the Withdrawal Agreement have now been finalised and agreed at negotiator level. This agreement marks a decisive moment in the negotiations. The European Commission therefore recommended to the European Council (Article 50) to find that decisive progress has been made in the negotiations on the orderly withdrawal of the United Kingdom from the European Union, allowing the negotiations on the withdrawal agreement to be concluded and the next step of the process to be initiated. The negotiators have also agreed on an outline of the political declaration on the future EU-UK relationship.
The Withdrawal Agreement covers all elements of the UK's withdrawal from the EU: citizens' rights, the financial settlement, a transition period, governance, Protocols on Ireland, Gibraltar and Cyprus, as well as a range of other separation issues.
The EU and the UK negotiators have agreed on how to avoid a hard border between Ireland and Northern Ireland. Both will use their best endeavours to have a future agreement concluded before the end of the transition period by 1 July 2020. Should this not be the case, the EU and the UK could jointly extend the transition period. Alternatively, as of January 2021, the backstop solution for Ireland and Northern Ireland would apply, subject to a joint review mechanism.
That backstop solution means that a single EU-UK customs territory will be established, which will apply from the end of the transition period until such a time as a subsequent agreement becomes applicable. Northern Ireland will therefore remain part of the same customs territory as the rest of the UK. The single customs territory covers all goods with the exception of fishery and aquaculture products.
The creation of the single customs territory includes the corresponding level playing field commitments and appropriate enforcement mechanisms to ensure fair competition between the EU27 and the UK.
The outline of the political declaration published today records the progress in reaching an overall understanding on the framework for the future EU-UK relationship. The EU and UK negotiators will continue their work based on the outline.
Nothing is agreed until everything is agreed. The present Withdrawal Agreement – including the transition period – must take into account the framework of the future relationship. The political declaration must therefore be further developed and agreed in its final form.
In parallel, the European Commission will continue its preparedness and contingency work for all eventualities.
Next steps
The EU and UK negotiators will continue their work on the political declaration on the framework for the future relationship based on the outline published today. It is up to the President of the European Council to decide whether and when to convene a meeting of the 27 Heads of State or Government. It will be up to the European Council (Article 50) to endorse the Withdrawal Agreement and the joint political declaration on the framework of the future relationship.
Once the Withdrawal Agreement is endorsed by the European Council (Article 50), and before it can enter into force, it needs to be ratified by the EU and the UK. For the EU, the Council of the European Union must authorise the signature of the Withdrawal Agreement, before sending it to the European Parliament for its consent. The United Kingdom must ratify the agreement according to its own constitutional arrangements. [...]
Text of the finalised Withdrawal Agreement
Outline of the Political Declaration on the Framework of the Future Relationship
Joint report
Questions & Answers: Brexit Negotiations: What is in the Withdrawal Agreement
Questions & Answers: Protocol on Ireland and Northern Ireland
Déclaration par Michel Barnier
[...]The third Protocol concerns Ireland and Northern Ireland.
We have now found a solution, together with the UK, to avoid a hard border on the island of Ireland.
First, we will use our best endeavours to solve this issue for the long term, through a future agreement.
If we are not ready by July 2020, we could jointly consider extending the transition to provide for more time.
Only if at the end of the transition, extended or not, we are still not there with a future agreement, would the backstop solution that we agreed today kick-in.
This backstop solution has evolved considerably from the original EU proposal of February this year.
Over the last few weeks, we have worked with the UK on the basis of their proposal.
In the backstop scenario, we agreed to create a EU-UK single customs territory. Northern Ireland will therefore remain in this same customs territory as the rest of the UK.
In addition:
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Northern Ireland would remain aligned to those rules of the Single Market that are essential for avoiding a hard border. This concerns agricultural goods as well as all products.
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The UK would apply the EU's Customs Code in Northern Ireland. This would allow Northern Irish businesses to bring goods into the Single Market without restrictions, which is essential to avoid a hard border.
The text of the Protocol also makes clear that the Northern Irish economy retains unfettered market access to the rest of the UK.
At the UK's request, Northern Ireland will apply all the rules of the single market for electricity.
This is in the interest of the economy of Northern Ireland and Ireland.
Ladies and gentlemen,
This single EU-UK customs territory would mean that UK goods get tariff and quota free access to the EU27 market.
For competition to be open and fair in such a single customs territory, we have agreed provisions on state aid, competition, taxation, social and environmental standards.
This will guarantee that both EU and UK manufacturing will compete on a level playing field.
An essential condition for this single customs territory to cover fisheries and aquaculture products will be to agree between the Union and the UK on access to waters and fishing opportunities.
Overall, this backstop shows that we have been able to find common ground and meet our common objectives:
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To protect the Good Friday Agreement in all its dimensions, North-South cooperation and the all-island economy;
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To preserve the integrity of the EU's Single Market – and Ireland's place in it;
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To respect the UK's territorial integrity and constitutional order;
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To protect the Common Travel Area between Ireland and the UK.
Finally, let me repeat that this backstop is not meant to be used. Our objective remains to reach a new agreement between the EU and the UK before the end of the transition. [...]
Full statement (in French)
Remarks by President Donald Tusk after his meeting with Brexit EU Chief negotiator Michel Barnier
In the next days, we will proceed as follows. The agreement is now being analysed by all the member states. By the end of this week, the EU27 ambassadors will meet in order to share their assessment of the agreement. I hope that there will not be too many comments. They will also discuss the mandate for the Commission to finalise the Joint Political Declaration about the future relations between the EU and the UK. The European ministers will be involved in this process. The Commission intends to agree the declaration about the future with the UK by Tuesday. Over the following 48 hours, the member states will have time to evaluate it, which means that the EU27 Sherpas should conclude this work on Thursday. Then, if nothing extraordinary happens, we will hold a European Council meeting, in order to finalise and formalise the Brexit agreement. It will take place on Sunday 25th November at 9:30.
Finally, let me say this to our British friends. As much as I am sad to see you leave, I will do everything to make this farewell the least painful possible, both for you and for us. [...]
Full remarks
Related articles:
BBC: Theresa May: Cabinet has backed draft Brexit plan
Financial Times: EU leaders welcome ‘decisive step’ in Brexit process
The Guardian: Business leaders welcome cabinet Brexit approval as markets remain wary
[...]The Confederation of British Industry (CBI), Britain’s leading business lobby group, said on Wednesday night the move was “a step back from the cliff-edge”.
The pound and euro rose slightly on the news, although concerns about whether the proposal would clear parliamentary hurdles capped broader gains. The pound was a shade higher at $1.2998 after peaking at $1.3072 on Wednesday. The euro added 0.15% to $1.1325. Ray Attrill, the head of currency strategy at National Australia Bank, said: “Getting the draft approved by the parliament will be extremely challenging and that’s why we are seeing sterling gains capped at 1.3.” [...]
The CBI’s director-general, Carolyn Fairbairn, said after May’s cabinet deal: “After 20 months of debate, this agreement by cabinet is progress. It moves the UK one step away from the nightmare precipice of no deal and the harm it would cause to communities across the country. Securing a transition period has long been firms’ top priority and every day that passes without one means lost investment and jobs, hitting the most vulnerable hardest.
“Time is now up. This deal is a compromise, including for business, but it offers that essential transitional period as a step back from the cliff-edge.”
Before the details of the deal were released on Wednesday night, lobby groups including the Institute of Directors and the British Retail Consortium said any degree of certainty about Britain’s future relationship with the EU, no matter how hazy, would help businesses.
After the withdrawal agreement was released, Stephen Jones, the chief of UK Finance, the trade body for the banking and finance industry, said: “Securing an agreed text on the withdrawal agreement is an important step forward in avoiding a damaging and disorderly exit from the European Union. However, the hard work needs to continue. The country’s economic future depends on politicians showing pragmatism over ideology and having an honest debate about the true cost of leaving the EU without a deal in place.
“The finance industry will continue planning to minimise any disruption from a ‘no-deal’ scenario, until the agreement has been ratified on both sides of the channel. During this time it is vital that both the EU and UK continue to work together to address potentially critical cliff-edge issues … The future framework shows important progress has been made in defining the nature of the UK’s long-term relationship with the EU. These commitments must be solidified to ensure we can enable meaningful future cross-border market access in financial services.” [...]
Full article on The Guardian
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Bloomberg: It’s Europe That Really Wins the Brexit Brinkmanship
Financial Times: Brexit backstop drawbacks pose problems for UK and EU
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