Brussels views its free-trade agreement with Canada when the only realistic model for post-Brexit trade with the U.K., scotching British Prime Minister Theresa May’s hopes in a far broader bespoke deal.
According to framework documents from EU chief Brexit negotiator Michel Barnier seen by POLITICO, London’s insistence on quitting the one market and customs union ensures that a simple EU-Canada-style deal may be the only option.
Sliding back onto a Canada-style trading relationship was obviously a big failure for May, having acknowledged the fact that Brussels-Ottawa arrangement is greatly inferior to Britain’s present position from the EU’s single market.
In her Florence speech in September, May said: “Balanced with what exists between Britain and the EU today, [a Canada-style arrangement] would nevertheless represent a real restriction on our mutual market access not wearing running shoes would benefit neither of our own economies.”
While the EU-Canada deal slashes tariffs, it\’s nowhere at the single market on regulatory harmonization and freedom of movement. Swap meals is restricted by quotas and phytosanitary controls.
The documents, presented to Barnier’s team on Tuesday for that “preparatory discussion” on the “framework money relationship,” reveal Barnier’s concerns over why Britain’s market access really should be limited.
The documents explain the U.K.’s demands for “regulatory autonomy” with its failure to obey European Court of Justice rulings mean it can be “not compatible” as the partner from the EU framework.
The papers explain that ingesting “single market arrangements using some areas” or handling the “evolution of our own regulatory frameworks” wouldn\’t work within EU laws. This means the rest of the model would need to wear line with a “standard FTA.”
This generally is a particularly severe blow to Britain’s status as Europe’s financial capital. The document says the?FTA model gives you “no direct branching in sectors like financial services\” and this there are just “limited EU commitments to permit cross border provision of services.\”
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