{"id":142346,"date":"2020-03-05T10:20:27","date_gmt":"2020-03-05T10:20:27","guid":{"rendered":"https:\/\/www.bnreport.com\/whisper-it-an-eu-uk-deal-is-there-to-be-done\/"},"modified":"2020-03-05T10:20:27","modified_gmt":"2020-03-05T10:20:27","slug":"whisper-it-an-eu-uk-deal-is-there-to-be-done","status":"publish","type":"post","link":"https:\/\/www.bnreport.com\/en\/whisper-it-an-eu-uk-deal-is-there-to-be-done\/","title":{"rendered":"Whisper it \u2026 an EU-UK deal is there to be done"},"content":{"rendered":"<p>LONDON \u2014 In the Brexit talks, the English Channel looks wider than ever \u2014 but a deal by the end of the year is more likely than many think.<\/p>\n<p>The gulf between the two sides has been widened by Boris Johnsons insistence that the U.K. wants maximum sovereign divergence from Brussels. On three key issues \u2014 state aid, dispute resolution and fishing \u2014 what the EU is asking for is not just problematic for the U.K.; its anathema.<\/p>\n<p>But cut through the noise and there is a landing zone for a deal.<\/p>\n<p>Paradoxically, the U.K. governments decision to cut loose the aim of Johnsons predecessor Theresa May for a \u201c<a href=\"https:\/\/www.gov.uk\/government\/speeches\/pms-florence-speech-a-new-era-of-cooperation-and-partnership-between-the-uk-and-the-eu\" rel=\"noreferrer noopener\" target=\"_blank\">deep and special partnership<\/a>\u201d with the EU has injected a dose of realism.<\/p>\n<blockquote><p>\nDespite the seemingly intransigent rhetoric, the political conditions in the U.K. make compromise more likely.\n<\/p><\/blockquote>\n<p>As Sam Lowe, senior research fellow at the Centre for European Reform, <a href=\"https:\/\/www.cer.eu\/insights\/future-eu-uk-relationship-and-relative-case-optimism\" rel=\"noreferrer noopener\" target=\"_blank\">has pointed out,<\/a> the U.K. accepts that leaving the EUs single market and customs union means more autonomy but also more barriers to trade. There is none of the cognitive dissonance of the early May era, when the U.K. wanted to \u201chave its cake and eat it.\u201d<\/p>\n<p>\u201cBeyond the headline issues the two parties arent so far apart,\u201d Lowe said.<\/p>\n<p>\u201cA landing zone will only really become visible later on,\u201d agreed Georgina Wright, senior researcher at the Institute for Government think tank. \u201cNow its all about standing up for your interests and constituencies [or at least being seen to be] \u2026 A basic U.K.-EU deal in goods which covers some aspects of services is possible, but it will require both sides to compromise.\u201d<\/p>\n<p>A former U.K. trade official, speaking on condition of anonymity, agreed. \u201cOn the trade side, the points of convergence are remarkably similar,\u201d the official said. Crucially, both sides agree that avoiding tariffs and quotas on trade in goods is desirable. However, it remains to be seen if the EU will compromise on its demand for regulatory alignment or whether the U.K. will budge on its objection to such level playing field requirements.<\/p>\n<h3><strong>Art of the deal<\/strong><\/h3>\n<p>For all the tub-thumping rhetoric about taking back control of U.K. fishing waters, it is relatively easy to see a happy middle ground between the two sides. The U.K. wants annual negotiations with the EU over access to each others waters while Brussels wants, more or less, to maintain the status quo. U.K. Environment Secretary George Eustice signaled on Wednesday that some aspects of the fisheries question could be negotiated on a multiannual basis, suggesting that the U.K. position could be malleable.<\/p>\n<p>On state aid and the wider role of the Court of Justice of the European Union in enforcing the agreement, U.K. negotiators are more hard-line.<\/p>\n<p>The EU wants its state aid rules to apply in the U.K., with a role for the CJEU in deciding if and when the U.K. had overstepped the mark. British negotiators say that is not acceptable.<\/p>\n<p>Some observers in the U.K. wonder whether Brussels approach is a little over the top. \u201cThe U.K. is historically much more strict than other EU member states\u201d at enforcing state aid rules, the former trade official said.<\/p>\n<blockquote><p>\nWith a healthy majority, Johnson has comfortable room for political maneuver should he have to make the odd concession.\n<\/p><\/blockquote>\n<p>Lowe and other<a href=\"https:\/\/www.politico.eu\/article\/brexit-trade-deal-whisper-it-an-eu-uk-deal-is-there-to-be-done\/?utm_source=RSS_Feed&amp;utm_medium=RSS&amp;utm_campaign=RSS_Syndication\" rel=\"noreferrer noopener\" target=\"_blank\">Read More \u2013 Source<\/a><br \/>\n[contf]<br \/>\n[contfnew]<br \/>\n        <img decoding=\"async\" src=\"https:\/\/snap.md\/wp-content\/uploads\/2018\/03\/politico-logo.jpg\"\/><\/p>\n<h5><a href=\"https:\/\/www.politico.eu\/\" rel=\"noreferrer noopener\" target=\"_blank\">politico<\/a><\/h5>\n<p>[contfnewc]<br \/>\n[contfnewc]<\/p>\n","protected":false},"excerpt":{"rendered":"<p>LONDON \u2014 In the Brexit talks, the English Channel looks wider than ever \u2014 but a deal by the end of t..<\/p>\n","protected":false},"author":1,"featured_media":142347,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[202],"tags":[],"class_list":["post-142346","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-finance"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.9 - 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