Michel Barnier urges ‘clarity’ from Theresa May on Brexit as he warns being outside the customs union means goods WILL be more expensive once we leave
MICHEL Barnier has urged for “clarity” from Theresa May on Brexit as he warned the UK that being outside the customs union means goods will be more expensive.
The EU's chief negotiator said friction on trade was “inevitable”, and told the Prime Minister “the time has come to make a choice”.
Earlier he and Mrs May were pictured sharing an awkward glass of water as he held crunch Brexit talks in Number 10 – with the focus on the transition agreement.
After the working lunch with David Davis, the Brexit Secretary tweeted: “Constructive talks today with Michel Barnier in Downing Street.
"Our teams will work intensively to agree an implementation period by March.”
But Mr Barnier said the UK has to "play by the same rules" as the EU during the transition period.
Speaking to reporters after the discussion he said: "The only thing I can say: without a customs union and outside the single market, barriers to trade and goods and services are unavoidable.
"Time has come to make a choice."
He added: "We need also clarity on the UK proposals for the future partnership.”
He had earlier said there was "not a minute to lose" in efforts to achieve a deal, and said there was "much work" to be done - adding it was time to "accelerate" diplomatic efforts.
He told reporters: "My feeling is we have not a minute to lose because we want to achieve a deal.
"There is so much work so we have decided for this reason to accelerate all the contacts."
What is the EU customs union?
BEING a part of it is one of the founding treaties binding members of the EU, and is a central part of the bloc’s trade policy:
- It means they can all trade freely with each other at no cost, and agree to charge the same tariff on imports from countries outside it.
- But staying inside the EU Customs Union means it is tied to its arrangements with the rest of the world.
- This means the UK cannot negotiate its own trade deals with counties like India and China – one of the key issues for Brexiteers.
- Leaving it would also mean Britain would not have to continue to pay contributions to Brussels - in 2015 it paid £13billion.
- It would also be able to ditch free movement rule and take back control of immigration, and not be subject to European Court of Justice laws.
- But those who want us to stay in say the UK will face tariffs to sell our goods and services with our biggest trading partner the EU.
- And maintaining membership means the soft border between Northern Ireland and the Republic of Ireland can continue, and not go back to having customs checks.
It comes after Mrs May was urged to “get up off her knees” and face down the EU by the former Chancellor Lord Lawson.
He said the PM needs to show a “clear political lead” as the Irish border issue is set to dominate discussions after she ruled out staying in the customs union.
But the backdrop of warring Cabinet ministers over the direction things are taking and last week’s row over the civil service trying to influence Brexit have weakened Britain’s hand.
Lord Lawson said treasury officials – who were accused by Brexiteers of trying to keep the UK in the customs union - "will do what they’re told if they get a clear political lead".
But the ex-Cabinet minister told : "There is no clear political lead, that’s the problem."
And he called on Theresa May to "get up off her knees and stop this cringing attitude towards the European Union and get herself sorted".
Lord Lawson was speaking after Number 10 moved to try and put an end to the speculation about whether we would stay in the customs union when we exit the bloc.
The statement to "categorically" rule it out was an attempt to placate Tory MPs and ministers who are keen for a Brexit arrangement which allows the UK to strike trade deals around the world - something which the EU group could have prevented.
But it has been criticised by leading Remainer Anna Soubry, who urged Number 10 to "do the maths" and listen to company bosses who want us to stay in the tariff-free system.
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And the issue is set to dominate the talks, as moving outside the customs union could have major consequences for the Irish border issue, which was top of the list of topics for the meeting with Mr Barnier.
The event marked the first time Mrs May, Mr Davis and the Brussels official have got together since EU leaders gave the green light for the second phase of negotiations to start in December.
Speaking before he left for London, Mr Barnier said “we have not a moment to lose”.
And he added: “There is so much work so we have decided for this reason to accelerate all the contacts.”