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The measures, outlined in a presentation to EU27 member states last week and published on Thursday, show the bloc wants unprecedented safeguards after the UK leaves to preserve a “level playing field” and counter the “clear risks” of Britain slashing taxes or relaxing regulation.
Brussels describes the UK economy as too big and too close to treat like a normal trade partner and wants to define new ways to enforce restrictions on taxation, state aid, environmental standards and employment rights.
The negotiators said any deal on future relations had to “cater to the specificities” of the UK-EU relations — implying the “depth and breadth” of relations justifies tighter controls than those expected of the US, Japan or Canada.
Noting such strict curbs do not feature in standard trade deals, the EU paper argues innovative mechanisms will be needed to keep the UK in check, either through conditions in a trade agreement or separate retaliatory measures.
“International rules do not adequately address the [potential] distortive effects of subsidies on investment, trade and competition,” the paper states. “The EU-UK agreement will have to include robust provisions on state aid to ensure a level playing field.” [...]
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