EU’s chief negotiator unveils long-awaited agreement outlining Britain’s relationship with the bloc in the period after the end of Article 50 – but says there is still ‘a lot of work to do’ at press conference with David Davis
BRITAIN yesterday secured a Brexit transition deal vital to business that will also allow fresh trade talks around the globe.
Brexit Secretary David Davis and EU chief negotiator Michel Barnier unveiled terms for the 21 month period intermin period after crunch Brussels talks.
Business bosses told of their relief over the deal that will end fears of a cliff edge for firms, and Sterling surged on the news.
But a series of concessions by Theresa May on immigration and fishing rights sparked a furious Tory revolt.
Scots Tory MPs attacked the status quo agreement, that leaves UK fishermen still having their quotas set by the EU until the transition ends, on December 31, 2020.
One – Moray’s Douglas Ross – insisted: “It would be easier to get someone to drink a pint of cold sick than try to sell this as a success”.
Former Tory leader Iain Duncan Smith also warned of “real concern”, saying that “a lot of MPs are very uneasy”.
No10 hit back to insist Britain notched up a series of wins in the deal, including stopping the EU from being able to reduce Britain’s overall share of the catch during the transition.
The UK will also be free to set its own foreign policy as soon as Brexit happens, as well as negotiate and sign new trade deals anywhere in the world – to implement them in 2021.
However EU chiefs made it clear the period, which allows the UK to stay in the Single Market and Customs Union, will only come into force if the Irish border is sorted.
Hailing the transition agreement at a press conference in Brussels, Mr Davis said: “A good deal for the UK and the EU is closer than ever before.
“Businesses need not delay investment decisions or rush through contingency plans based on guesses about the future deal.
“Instead they now have certainty about the terms that will apply immediately after our withdrawal, meaning they can continue to operate and invest with confidence.”
He added: “The UK will be able to step out, sign and ratify new trade deals with old friends and new allies around the globe for the first time in more than 40 years.
David Davis and Michel Barnier hailed the agreement as a “significant step” on the road to our exit from the Brussels bloc – here we explain why, and what happens next:
What is a transition period?
Essentially it is a bridging agreement between the current situation – where we are members of the EU, and our long-term situation – which will be outside of the bloc.
Also known as an "implementation phase", it allows for the UK to keep the same arrangements with Brussels on trade and other matters, until a new comprehensive trade agreement is sealed.
Why is it needed?
As so much of Britain’s legislation and trade rules is overseen by Brussels, having been members of the EU for more than 44 years, it is expected to take a long time to unpick it all and come to a new deal.
But when Theresa May triggered Article 50 last March, it only gave us two years until we left the EU, which is not long enough to sign off an agreement.
What would happen without it?
If the UK left the EU next March without a transition deal in place, then they would no longer be able to trade with the remaining countries on a tariff-free basis.
Our relationship would fall back on the rules set up by the World Trade Organisation, which business say would be extremely costly and damaging to them, which is why they have lobbied so hard for a transitional agreement.
How long will it last?
Originally slated to last up to three years, the UK requested it be in place for two – however the EU have negotiated it down slightly, meaning we will still be under Brussels riles for an extra 21 months.
David Davis welcomed this as “near enough” what the UK wanted, meaning we will not be fully out of the EU until December 31, 2020 – four and a half years after the historic referendum decision.
What happens next?
The draft agreement has to be approved by the remaining 27 EU countries, which could take place at this Friday’s summit.
If they accept the document then it means the Brexit negotiations can move on to the most important, and most tricky, phase; agreeing on a long-term trade deal - but both sides now have much more breathing room to get it done, as it doesn’t have to be agreed until the end of 2020.
“These will come into force when the implementation period is over, providing new opportunities for businesses across the UK and seizing one of Brexit’s greatest opportunities.”
The Brexit secretary also insisted Gibraltar will be covered by the transition, though his counterpart made clear this would only happen with the agreement of Spain.
Mr Barnier confirmed that EU nationals arriving during the transition will “enjoy the same rights and guarantees as those who arrived before Brexit day”.
And he said that trade talks with Britain can now begin as early as next month, once EU leaders have signed off on their negotiating guidelines.
EU citizens arriving in Britain during the transition period will have the same rights as EU nationals now.
And British citizens will be given the same rights when moving to member states.
Britain has its wish to force new arrivals from March 2019 who want to stay long term to register within three months. This will extend to three months after the transition which ends in December 2020.
VERDICT: COMPROMISE
He said: “We were able to agree on a large part of what will make up an international agreement for the ordered withdrawal of the UK.
“We are committed to working during this period in good faith and to continuing to respect the principle of loyal cooperation.”
Defending the deal on free movement, a UK official pointed out negotiators had received assurances from the EU over British expats’ rights and added they would continue to fight for onward movement.
He insisted: “It’s not that we rolled over and caved in. It’s a fully reciprocal deal.”
BRITAIN will be able to negotiate and sign free-trade deals during the transition, in a major win.
But these deals will only come into effect when the transition period ends.
The International Trade Secretary has already laid the foundations for bumper trade deals. Working groups are active with more than 20 countries, including the United States, South Korea and Australia.
VERDICT: WON
Yesterday eurocrats published a new colour-coded version of the proposed deal highlighting areas of agreement and divergence.
It shows the two sides have now fully locked in the terms relating to citizens’ rights and the divorce bill.
Negotiators said around three-quarters of the 53,000 word document have now been agreed upon.
However there are still significant differences over Ireland despite “good progress” in the last few days.
BRITAIN failed in its demand to take back control of fishing rights during the transition period.
Instead the 27 EU member states will continue to set quotas in UK waters – and Britain will only be “consulted”, with no voting rights.
But in a minor win for the Prime Minister, Brussels will not be able to reduce the UK’s quota during the transition period.
VERDICT: LOST
Yesterday morning the Irish foreign minister Simon Coveney met with Mr Barnier before the press conference to seek reassurances over the UK’s promises.
Britain has conceded a “backstop” will be included in the final withdrawal deal but the two sides are at loggerheads over what form it should take.
An EU official confirmed the UK has not agreed to Brussels’ proposal that would keep Northern Ireland within the Customs Union if a new trading relationship does not avoid the creation of a hard border.
He said: “The UK has accepted there needs to be a backstop. That’s an important political message.
THE Irish border remains the biggest sticking point.
The EU supports a “backstop” option, effectively keeping Northern Ireland in the customs union if no other solution is found.
This would see Ulster still aligned on EU regulations such as agriculture and energy. But Theresa May has insisted that she will not sign up to anything that jeopardises the union.
VERDICT: KICKED INTO LONG GRASS
“What that backstop is needs to be discussed. Who decides? Both parties. Technical solutions can help to implement the system, but you need to design the system.”
CBI Director-General Carolyn Fairbairn dubbed it “a critical milestone that will provide many hundreds of businesses with the confidence to keep investing in the UK”.
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