EU offers Brexit trade talks, sets tough transition terms

The European Union offered Britain talks this year on a future free trade pact but made clear in negotiating guidelines issued on Friday that London must first agree to EU demands on the terms of Brexit.

Those include paying tens of billions of euros and giving residence rights to some 3 million EU citizens in Britain, the proposed negotiating objectives distributed by EU summit chair Donald Tusk to Britain's 27 EU partners showed.

The document, seen by Reuters, also sets tough conditions for any transition period, insisting Britain must accept many EU rules after any such partial withdrawal. It also spelled out EU resistance to Britain scrapping swathes of tax, environmental and labor laws if it wants to have an eventual free trade pact.

People drink beer at a Pro-Brexit event to celebrate the invoking of Article 50, in London. REUTERS/Peter Nicholls
People drink beer at a Pro-Brexit event to celebrate the invoking of Article 50, in London. REUTERS/Peter Nicholls

The guidelines, which may be revised before the EU27 leaders endorse them at a summit on April 29, came two days after Prime Minister Theresa May triggered a two-year countdown to Britain's withdrawal in a letter to Tusk that included a request for a rapid start to negotiations on a post-Brexit free trade deal.

"Once, and only once we have achieved sufficient progress on the withdrawal, can we discuss the framework for our future relationship," Tusk told reporters in Malta -- a compromise between EU hardliners who want no trade talks until the full Brexit deal is agreed and British calls for an immediate start.

"Starting parallel talks on all issues at the same time, as suggested by some in the UK, will not happen," Tusk said, while adding that the EU could assess as early as this autumn that Britain had made "sufficient progress" on the exit terms in order to open the second phase of negotiations, on future trade.

Brussels has estimated that Britain might owe it something of the order of 60 billion euros on departure, although it says the actual number cannot be calculated until it actually leaves.

What it does want is to agree the "methodology" of how to work out the "Brexit bill", taking into account Britain's share of EU assets and liabilities. Britain disputes the figure but May said on Wednesday that London would meet its "obligations".

The Union's opening gambit in what Tusk said would at times be a "confrontational" negotiation with May's government also rammed home Brussels' insistence that while it was open to letting Britain retain some rights in the EU during a transition after 2019, it would do so only on its own terms.

Britain would have to go on accepting EU rules, such as free migration, pay budget contributions and submit to oversight by the European Court of Justice -- all things that drove last June's referendum vote to leave and elements which May would like to show she has delivered on before an election in 2020.

Reuters

Other News

Vietnam supports UNESCO's people-centred approach, multilateral cooperation: official

Vietnam supports UNESCO's people-centred approach, multilateral cooperation: official

Van affirmed Vietnam’s support for the UNESCO80 reform roadmap, focusing on the organisation’s core mandate, priority areas, interdisciplinary approach, and the special status of the Vietnam National Commission for UNESCO, and UNESCO representative offices, alongside efforts to diversify resources and strengthen global partnerships to enhance the organisation’s effectiveness.

Regional media highlight significant step in Vietnam’s leadership structure

Regional media highlight significant step in Vietnam’s leadership structure

Under General Secretary and President Lam’s leadership, Vietnam is expected to maintain a balanced foreign policy, strengthen its regional standing and accelerate economic development, thereby improving living standards and creating new opportunities for international investors, according to the India-based platform Devdiscourse.

Laos identifies 10 key tasks to build independent, self-reliant economy

Laos identifies 10 key tasks to build independent, self-reliant economy

Laos will step up agricultural production to ensure food security, meet domestic demand and expand exports; encourage the development of agro-processing industries, including those related to rubber, aquatic products, cassava and sugarcane, as well as fertiliser and animal feed production, in order to increase added value and create jobs in rural areas.

Malaysia steps up cyber security resilience

Malaysia steps up cyber security resilience

To ensure accountability, Malaysia plans to finalise the Cybercrime Bill this year which addresses both cyber-dependent and cyber-enabled offences, introducing stricter penalties and prison terms to enhance deterrence.

US public opinion positive about PM Pham Minh Chinh’s visit

US public opinion positive about PM Pham Minh Chinh’s visit

Public opinion in the US is generally positive about Vietnamese Prime Minister Pham Minh Chinh’s trip to the US from September 17-23 to attend the 78th session of the United Nations General Assembly, which took place immediately after the upgrading of the Vietnam - US relations to a comprehensive strategic partnership on the occasion of US President Joe Biden’s official visit to Vietnam.