{"id":141306,"date":"2020-01-27T21:20:37","date_gmt":"2020-01-27T21:20:37","guid":{"rendered":"https:\/\/www.bnreport.com\/5-things-to-know-about-the-eus-brexit-negotiating-stance\/"},"modified":"2020-01-27T21:20:37","modified_gmt":"2020-01-27T21:20:37","slug":"5-things-to-know-about-the-eus-brexit-negotiating-stance","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/5-things-to-know-about-the-eus-brexit-negotiating-stance\/","title":{"rendered":"5 things to know about the EUs Brexit negotiating stance"},"content":{"rendered":"

As the countdown to the United Kingdoms departure from the EU enters the final stretch, the bloc has shifted its focus to upcoming negotiations over the future relationship with its soon-to-be former member.<\/p>\n

Diplomats and MEPsfrom the remaining 27 EU countries, along with European Commission officials, have spent the past few weeks preparing Brussels position for the talks<\/a>, mapping out priorities and tactics that the EU intends to follow.<\/p>\n

The U.K. has yet to set out its position, expected in February.<\/p>\n

Here are five things to know about the EUs approach to the imminent marathon talks.<\/p>\n

1. What kind of free-trade deal can be done in 11 months?<\/h3>\n

Commission President Ursula von der Leyen wants an ambitious trade agreement of \u201cunprecedented scale\u201d with \u201cno tariffs, no quotas and no dumping.\u201d The broad scope of such a deal will be outlined in negotiating directives in early February, as soon as the U.K. has officially left the bloc.<\/p>\n

\nBarnier has since confirmed to MEPs that transport and aviation would be excluded from such a limited deal.\n<\/p><\/blockquote>\n

However, both von der Leyen and her chief Brexit negotiator Michel Barnier have made clear the 11 months left until the end of the transition period is too little time to reach such a deal, so Brussels will have to \u201cprioritize\u201d certain sectors. U.K. Prime Minister Boris Johnson has said he does not want an extension of negotiations beyond December 2020.<\/p>\n

Barnier said in Stockholm earlier this month that the only thing both sides could negotiate in the available time was a \u201cbasic agreement,\u201d which would only cover \u201ctrade in goods, level playing field [meaning a commitment to EU social, environmental and competition rules], the fisheries sector, and internal and external security.\u201d<\/p>\n

He has since confirmed to MEPs that transport and aviation would be excluded from such a limited deal. But he avoided clarifying whether trade in services, which is particularly important for the British economy, would also be a victim of such a short timeline.<\/p>\n

According to EU diplomats, the bloc aims to finalize its negotiation position in February and then kick off talks. These will be held in different groups of technical experts from different areas, but the clear focus in terms of allocation of resources will be on the prioritized sectors.<\/p>\n

<\/p>\n

European Commission President Ursula von der Leyen | Fabrice Coffrini\/AFP via Getty Images<\/p>\n

The end of June is the deadline for agreeing to any extension of the transition period and Brussels plans to tell Johnson that if he wants anything beyond a basic deal, hell need to give way and allow more time.<\/p>\n

2. Can salami tactics speed up negotiations?<\/h3>\n

London has suggested negotiations could be split<\/a> to reach individual deals in different sectors, rather than having one all-inclusive deal where difficult questions are kept open until the very end and then resolved by doing trade-offs. While such a strategy might indeed help to speed up talks, the EU sees a clear risk.<\/p>\n

\u201cIt will be a little like a salami tactic when one thing will be dealt with after the other, so there I hope we can maintain \u2026 the unity that we had in the past,\u201d Christophe Hansen, Brexit rapporteur for the European Parliaments trade committee, said Tuesday. The worry is that different EU countries have different national priorities when it comes to a post-Brexit relationship with the U.K., so member states might end up putting these before getting good deals for the EU as a whole.<\/p>\n

According information<\/a> shared with EU diplomats \u2014 which describes the Commissions ideal solution \u2014 both sides would negotiate a \u201csingle comprehensive partnership agreement\u201d with a general component, an economic component and a security component. There is then the possibility of \u201csupplementing agreements.\u201d<\/p>\n

EU countries have also said they want a \u201ccomprehensive approach with the possibility of trade offs between chapters.\u201d A draft structure prepared by the secretariat of the Council of the EU maps out what the deal could look like<\/a>.<\/p>\n

However, Barnier said earlier this month that the EU \u201cwill be pragmatic\u201d if needed and could split negotiations on internal and external security from the rest of the talks.<\/p>\n

\nU.K. Chancellor Sajid Javid said earlier this month that \u201cthere will be no alignment\u201d with EU rules post Brexit.\n<\/p><\/blockquote>\n

By contrast, talks on the level playing field and fisheries \u201cwill remain linked\u201d to trade discussions, he stressed. This is to ensure that Brussels has sufficient clout to extract concessions on labor rightsor access to British fishing waters.<\/p>\n

3. Will the EU accept deregulation by the Brits?<\/h3>\n

U.K. Chancellor Sajid Javid said earlier this month<\/a> that \u201cthere will be no alignment\u201d with EU rules post Brexit. Such an approach would be problematic if the U.K. planned to lower labor or environmental standards, granting British companies anything the EU would consider an unfair advantage over European competitors. The same goes for a loosening of competition and state aid rules.<\/p>\n

To avoid such a risk, the EU will insist on strong level playing field clauses in the deal that tolerate \u201czero dumping.\u201d Brussels has also proposed installing an arbitration mechanism that would allow the EU to levy fines or even suspend trade benefits<\/a> if the U.K. was not respecting its commitments.<\/p>\n

A document outlining the EU countries priorities says that they will not tolerate any \u201ccompetitive undercutting or free riding\u201d and will insist on \u201ccredible and effective enforcement of rules\u201d to \u201cprevent unfair competitive advantages and trade distortions on a sustainable basis.\u201d<\/p>\n

Yet Britain could also deregulate in other areas that dont automatically result in unfair competitive advantages, for example by adopting diverging product safety standards. While the EU has little power to stop the U.K. from doing so, such a move risks disrupting supply chains and would make it more difficult to get products from cars to machines approved for the EU market. If Britain was to change food safety rules and, for example, allow hormone treatments for cattle, Brussels would respond by banning all British beef exports.<\/p>\n

<\/p>\n

Chancellor of the Exchequer Sajid Javid | Peter Summers\/Getty Images<\/p>\n

4. Why do existing EU trade agreements limit the scope of a deal with Britain?<\/h3>\n

The Commission has warned<\/a> that it has a \u201climited margin\u201d to offer the U.K. better market access for goods and services than it offers other countries. Thats because of so-called most favored nation clauses included in most modern EU trade deals, such as those with Canada, Japan and Vietnam. These Read More \u2013 Source<\/a>
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politico<\/a><\/h5>\n

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