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Friday 5 June 2020

EU Trade Talks on the Brink

by Louise Mclean


After yet another week of talks with the EU, no significant progress has been made. Watching Michel Barnier deliver his remarks at a press conference today, I felt quite sickened by the inability of the EU to budge one single inch from its position, while trying to give the impression of being totally reasonable and civil.

I think the only reason for any civility is because the EU does not want to lose the £39 billion if we decide to go for No Deal and WTO rules.

They are absolutely intransigent.  Barnier whines that we are not sticking to the Withdrawal Agreement and Political Declaration, those hated documents cooked up by the EU with Theresa May's acquiescence.  She certainly got us into a very difficult position.  If Boris Johnson had been our Prime Minister since the 2016 Referendum, I am sure he would not have negotiated such a terrible agreement. 

Once again the main areas of contention are fisheries, a 'level playing field' and the ECJ.

Why should we allow European fishermen into our waters to take our fish at will?  Why should we maintain a 'level playing field', and continue abiding by their selection of EU rules and regulations that suit them?  Why should we have the European Court of Justice adjudicating over our laws?

If we are genuinely leaving the EU, we should be a free and sovereign country.

The other thing the EU is terrified of, is Britain becoming competitive and more successful than its member states.  This will of course happen when we make our own trade deals with the USA and all the Commonwealth countries, but they hate the idea.

They want us to comply with their State Aid rules, so we can't bail out ailing UK companies that need help (which we couldn't under their laws).

There is another meeting on 19th June with Boris Johnson, Ursula von der Leyen, the EU Commission's President, and Charles Michel of the European Council.  I will bet that every last bit of pressure will be applied to Boris on that day to make him agree to an extension.

So far, Boris and chief negotiator David Frost have been absolutely clear that they will not have an extension to the transition past 31st December.  This is set down in law. Up until that date we have to abide by all EU laws.  Of course they would want it extended by another 2 years, and longer if they could!

The final date for an agreement to an extension is 1st July 2020.  I sincerely hope that Boris does not cave in.

If I were Boris Johnson, I would walk away right now.  There is no possibility of any agreement being made with the EU that will be beneficial to the UK.  So he should walk away and declare that we are leaving on 31st December on WTO rules.  

If the EU want to agree to the GATT 24 regulations, then we would have the next 10 years to negotiate a trade deal with no changes to the current tariff system that is in place already!  What's wrong with that?  But the EU is so impossible to deal with, would they even agree to that excellent solution?  I doubt it.  

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