Euroscepticism in the United Kingdom

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The UK-EU future relationship negotiations: process and issues

The UK and EU begin negotiations over their future relationship this week. This paper outlines the UK and EU's objectives, the main issues of contention and the process being followed in the negotiations

Background

• The WA dealt with the orderly exit of the UK from the EU, including, for example, the financial settlement.
• The WA also included the Protocol on Ireland/Northern Ireland which ensures no return to a hard border in Ireland.
• The UK and EU agreed a Political Declaration (PD) alongside the WA.
• This non-binding document sets out the broad framework for the future relationship between the parties.
• The UK is still subject to EU rules during this period even though it is no longer a Member State.

Scope of the negotiations

The negotiations are expected to cover a range of issues such as the future trade relationship, fisheries, aviation, security co-operation, governance and dispute resolution.

Timetable

• Many have commented that this is a very tight timetable and have contrasted it with other trade agreements which have taken several years to negotiate.
• The European Commission has published a timetable which envisages an initial agreement by October 2020, leaving time for ratification at the end of the year, and with negotiations on outstanding issues to continue in 2021.
• If this is not the case, the Government may walk away from the negotiations.

The Role of Parliament

• Parliament will have a limited formal role in negotiating and approving the future relationship with the EU.
• The provisions of the Constitutional Reform and Governance Act 2010 (CRAG) will apply.
• The original (October 2019) version of the EU (Withdrawal Agreement) Bill included provisions giving the House of Commons a role in approving the Governments negotiating mandate and the agreements themselves.

EU procedures for negotiations

The EU is conducting negotiations on the same legal basis as its other negotiations with non-EU countries. Future agreements will require approval by Member States in the Council of the EU and the European Parliament. Where agreements go beyond the EU’s exclusive competences they will also require ratification by national and (in some cases) regional parliaments.

UK objectives

• This would involve no tariffs or quotas on UK-EU trade, although a few tariffs remain on EU-Canada trade under their trade agreement.
• The UK is ruling out regulatory alignment with the EU, jurisdiction of the Court of Justice of the EU (CJEU) and supranational control over the UK in any area of the proposed agreements.
• In particular, the UK will not agree to be bound by level playing field obligations, such as, for example, rules on government subsidies to industry, workers rights and environmental protection.
• The Government has made it clear that the UK is leaving the EU single market and customs union and, as noted, will not agree to regulatory alignment.
• This will allow the UK greater economic and regulatory freedom, including an independent trade policy.

EU objectives

• The EU has said it wants to have a partnership with the UK which is as close as possible.
• These would be under a single overarching governance structure with a dispute resolution system in which the CJEU provides interpretations of questions of EU law.
• The EU agrees that the aim of the negotiations should be to ensure zero-tariff and zero-quota trade between the UK and EU.
• The EUs detailed objectives are set out in its Negotiating Directives of 25 February 2020.

Contentious areas

• The inclusion of level playing field commitments is likely to be one of the main areas of contention.
• Furthermore, the UK argues that it has used state aid less than other EU countries and has higher standards than the EU in some areas.
• The EU is concerned that the UK could gain an unfair advantage if its regulations diverge from those of the EU.
• Fisheries is also likely to be a contentious area.
• The role of the CJEU could be contentious, depending on whether the UK accepts a role for the court in matters of interpretation of EU law (as is the case with the WA) as distinct from an enforcement or dispute resolution role.



Commons Briefing papers CBP-8834

• The Secretary of State for Trade gave a statement to the House today on UK/US trade deal negotiating objectives.
• In recent news the government has estimated a post-Brexit trade deal with the United States would boost the UK economy by 0.16% over the next 15 years.
• The Secretaryexplained that these documents comprise the Government's negotiating objectives, it's response to the public consultation and an economic scoping assessment.
• "The UK stands at a historic moment, building it's independent trade policy for the first time in almost half a century.

• The EU Financial Affairs Sub-Committee hears evidence from John Glen MP, Economic Secretary to the Treasury and City Minister, inthe final evidence session of its inquiry onfinancial services after Brexit.
• Wednesday 4 March 2020 in Committee Room 4A, Palace of Westminster
  John Glen MP, Economic Secretary to the Treasury and City Minister, HM Treasury
  How should the EU's equivalence regime be improved?
• How should future UK-EU regulatory cooperation in financial services work in practice?
• What can be expected in the Government's upcoming White Paper and Financial Services Bill?

• Michael Gove updates the House on the future relationship ofthe UK and the EU after Brexit, whichtook placeon 31 January 2020.
• Mr Gove told the House that over the next 9 months the Government will negotiate a new relationship with the EU, "based on free trade and friendly cooperation".
• He said that the Governments plans are set out in their policy paper, 'Our approach to the Future Relationship with the EU '.
• "We want the best possible trading relationship with the EU, but in pursuit of a deal we will not trade away out sovereignty."