In the absence of rapid progress, the British government threatened, on Thursday, February 27, to slam the door in June of the post-Brexit negotiations with the European Union (EU), excluding an alignment on the community rules demanded by Brussels in exchange for a advantageous free trade agreement.
After the UK's exit from the European bloc at the end of January, the publication of the British negotiating mandate confirmed the deep disagreements between the two parties, even before the start on Monday of complex discussions on the future relationship between London and the 27 countries of the Union.
Despite the difficulty of the task, the British and Europeans have ten months to agree on their new relationship, before the end, on December 31, of the transition period, during which the United Kingdom continues to apply European rules, and which London categorically excludes from extending. "This leaves enough time, albeit limited, for the UK and the EU to reach an agreement", said the conservative-led Boris Johnson executive.
But for lack of serious prospects of agreement in June, London threatens to withdraw from the negotiations, raising the specter of a "No deal" with potentially disastrous economic consequences on both sides of the Channel.
Avoid unfair competition
One of the stumbling blocks is Brussels' demand that the United Kingdom continue to comply with certain EU rules over the long term, in particular with regard to State aid, the environment, labor law or of taxation, in return for a very wide opening of the European market, in particular without customs duty for goods.
"The government will not negotiate any arrangement where the UK has no control over its own laws and political life", is it written in the British mandate. "This means that we will not accept any obligation for our laws to align with those of the EU, or for the European institutions, including the Court of Justice, to be competent in the United Kingdom. " It is however specified that a "Friendly cooperation" between two parties "Sovereign and equal" is desired.
The goal of the Twenty-Seven is to avoid unfair competition on their doorstep. But the government of Boris Johnson does not hear this ear: the purpose of Brexit was precisely to ensure "Economic and political independence" from the UK, even if it means having more trade barriers.
In particular, the country wants to have control over its own state aid regulations. But he said he was open to “Reciprocal commitments not to weaken or reduce the level of protection” existing in labor law or the environment.
Fishing, one of the stumbling blocks
Another bone of contention is the highly sensitive issue of fishing. The EU wants "Maintain reciprocal access" in the territorial waters of both parties. A position difficult to accept for London, despite the warning from the EU, which conditions the conclusion of a commercial partnership to a fisheries agreement.
Insisting on their will to become again "An independent coastal state" at the end of 2020, the british intend to negotiate access to its waters with the eu each year, as Norway or Iceland do today.
Boris Johnson has repeatedly said he wants a basic trade deal like the one negotiated by the EU with Canada that will preserve his country's economic autonomy. Difficult, judge Brussels: accessing the single market requires respecting its rules. And the United Kingdom is a special case because of the deep ties forged over five decades of membership in the EU, its first trading partner.
The two parties said they were ready for the possibility of a lack of agreement, which would imply that economic relations between Brussels and London are governed by the rules of the World Trade Organization (WTO), much less advantageous because they set customs duties for the goods.