On Monday, London and Brussels want to make a first mark for their negotiating positions in talks about the future relationship. Both sides are tough.
London / Brussels (dpa) - After the Brexit, London and Brussels started to peg the negotiations for their future relations and tightened the tone. According to the announcements from the weekend, the economy would have to adjust to less close trade relationships than originally thought.
However, both sides only want to outline the respective negotiation line on Monday. There is likely to be a lot of back and forth until the end of the transition period at the end of the year. Until then, there should be a contract for the future partnership.
On Monday morning, British Prime Minister Boris Johnson will speak out in a speech to entrepreneurs and ambassadors. There was already a foretaste of this at the weekend. Several British media, citing government sources, said Johnson would reject Brussels requests for dynamic adjustments to EU standards on labor rights, environmental protection, and government aid. He therefore strives for a commercial relationship with the EU along the lines of Canada.
EU negotiator Michel Barnier has also set a hard line for the upcoming negotiations with Great Britain. "One thing is clear: the interests of each member state and all of our citizens come first," said the Frenchman on Twitter on Saturday. Barnier will also present on Monday what he wants to achieve in the talks with London. However, the 27 remaining EU states determine his exact mandate.
Britain had left the EU on Saturday night. In a transition period until the end of the year, practically nothing changes in everyday life. During this time, both sides want to agree on future relationships. In addition to trading, it also deals with fishing rights, security and access to databases. The period until the end of the year is actually considered to be too short, but Johnson vehemently rejects an extension option of up to two years, which is still open until the end of July. This continues to mean uncertainty for companies.
If there is no agreement, a hard break threatens, which is now referred to as the Australia model in London. So far, the EU has only one framework agreement with the fifth continent, which among other things concerns technical hurdles. Overall, trade between Europe and Australia takes place on the basis of the World Trade Organization (WTO). That would be the dreaded no deal in Great Britain.
The example of Canada has long been under discussion among Brexit hardliners. In the CETA (Comprehensive Economic and Trade Agreement), which provisionally came into force in 2017, Brussels and Ottawa agreed on the extensive elimination of tariffs and further easing of trade. In relation to its neighbor and close partner Great Britain, the EU actually wants more: no tariffs or quantity restrictions at all.
To do this, Brussels demands a level playing field, that is, Britain's compliance with common standards. Johnson, however, wants to have as free a hand as possible when setting its own rules in product, subsidy or tax law. An agreement based on the CETA model would also largely exempt the UK service sector.
Now the search for a compromise formula begins. According to the reports, Johnson does not want to loosen at least the previous standards regarding environmental protection, workers' rights and food hygiene. While this would still by no means meet the demand from Brussels for dynamic adaptation to changing EU standards, experts say it would be a possible starting point.
But before it comes to rapprochement, tensions are likely to increase for the time being. According to a Times report, the UK Foreign Office called on its diplomats to distance themselves from the EU delegation at international conferences and "not to be shy" when it comes to contradicting the EU position on foreign affairs.
Summary of the Ceta Agreement