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Britain has long suspected that Brussels would demand continued EU access to the UK’s fish-rich waters as a condition of a future trade deal, with an explicit link being drawn to an agreement on financial services.
But Mr Varadkar told the BBC: “The UK has a lot of waters and a lot of fish is taken out of your waters by boats from other countries. But bear in mind that 70 per cent of the fish you sell, you sell into Europe.
“That’s an area where you are in a strong position. An area where you’re in a very weak position is one of the most valuable parts of the British economy — financial services.
“You may have to make concessions in areas like fishing in order to get concessions from us in areas like financial services. That’s why things tend to be all in the one package.”
The collision on fish and finance issues was set up in last year’s political declaration between Britain and the EU on future relations, which stated that agreements on both areas were a priority and should be settled by July.
If you see this as a contest, the EU is in a very strong position . . . But I don’t think we have to see it as a contest Leo Varadkar Downing Street said it stood by the declaration but insisted the precise timetable for negotiations was still to be agreed between the two sides. The UK hopes to stop Brussels using the sequencing of trade talks to the EU’s advantage.
Boris Johnson’s spokesman said that after Brexit the UK would take control of its coastal waters, but did not exclude the prospect that EU fishermen could continue to operate in them as part of a future agreement.
“It will be for the UK to determine who fishes in our waters,” added the spokesman.
Britain’s financial services sector hopes to maintain a close relationship with the EU but it will not enjoy the same level of access as under the bloc’s single market, which includes a so-called passporting regime. This allows banks and other financial companies authorised in one EU member state to trade freely in another. [...]
After talks in Dublin on Monday with Mr Varadkar, EU chief Brexit negotiator Michel Barnier said he would next Monday circulate a draft negotiating mandate to European capitals for the trade talks with the UK.
“Let me recall that the UK is leaving 600 international agreements,” he said. “We have to rebuild everything in our common interest.”
Mr Varadkar said Ireland would be a “friend to the UK” after Brexit, but would be on “team EU” in the trade talks.
He added: “If you see this as a contest, the EU is in a very strong position . . . But I don’t think we have to see it as a contest. There is a possibility for us to work together with the UK over the next few months and come to a future relationship and a trade agreement that’s mutually beneficial.” [...]
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