Michel Barnier confirms Brexit transition has been agreed: UK will be able to negotiate trade deals while in Single Market, but has agreed to Irish border "backstop"
Barnier said it was a "decisive step forward" (Source: Getty)
Monday 19 March 2018 12:09pm
The UK and EU have agreed a "limited transition period" until 31 December 2020, Michel Barnier has confirmed as he welcomed a "decisive step forward" in Brexit talks.
The UK will be able to negotiate and strike trade deals during the period, while also remaining a part of the Single Market and customs union, however it will not participate in any decision making at an EU-level and must abide by EU laws for the duration of the period.
The pound climbed on the news, rising to a seven week high against the euro and breaking through the $1.40 mark against the dollar.
The EU will have to "consult" the UK over fishing quotas - but the UK will not regain control until after 2020.
Barnier announced the transition had been struck as the EU published a colour-coded draft withdrawal agreement, setting out where compromise had been reached,
The EU's chief negotiators said the two sides had reached "complete agreement" on citizens rights, giving reassurance to the millions of people who live either in the UK or the EU, and the divorce bill.
He said there was still a lot of work to do on the matter of the Irish border - but he confirmed that his "backstop" proposal would apply "unless or until another solution is found".
This would mean that unless an alternative is reached, Northern Ireland could remain part of the EU's customs union.
Citizens who arrive during transition will receive the same rights as those who arrive before, Barnier said.
David Davis said the transition deal gave "businesses certainty about the terms that will apply immediately after our withdrawal" but stressed it was also about the beginning of a longer-term partnership.
Davis confirmed the "backstop" proposal remained in play, but stressed his intention was to agree a deal that made the UK's relationship with the EU so close it would not be required.
He added the two sides were "steadfast" in their commitment to avoiding a hard border.
Both men praised their negotiating teams for making good progress, with Davis saying they had "locked down entire chapters" on financial settlement and citizens' rights.
During a visit in the Midlands, to announce a £90m fund to tackle inequality and youth unemployment, Prime Minister Theresa May said: "Prior to December people questioned whether we would get agreement then. We did. People questioned whether we would get agreement now. We have.
"I think what this shows is that with good will on both sides, working hard, we can get an arrangement for the future which will be in the interests of the UK and in the interests of the European Union and it will be good for all parts of the UK."
But not everyone was convinced.
Scottish Conservative leader Ruth Davidson said: "During these negotiations, we wanted to gain control over our waters from as early as the end of next year.
"The EU was not willing to move on this. That we now have to wait until 2020 to assume full control is an undoubted disappointment.
"Having spoken to fishing leaders today, I know they are deeply frustrated with this outcome. There is no ignoring the fact that this falls short of what they had hoped for in the short-term."
Bernard Jenkin, chair of the Public Administration and Constitutional Affairs Committee, told City AM there were "constitutional" issues arising from the draft agreement - such as how the ECJ would implement rules - that would require careful consideration.
He added: "I'm delighted that the EU has conceded on some pretty big principles, like being able to negotiate our own trade deals during the implementation period, but there are a lot of issues in the small print, such as how the ECJ applies EU jurisdiction.
"And a great many many colleagues are concerned about the fisheries point - this goes beyond the usual suspects. There is the question of whether we were lied to about registering EU citizens... and the whole Northern Ireland thing is ridiculous. The PM has been clear - no PM could put a customs frontier down Irish sea, but we are not going to be frogmarched into the customs union to avoid it."
But there was a sense that both sides had made compromises, and optimism it set a solid foundation for the next phase of talks.
Conservative MEP Syed Kamall told City AM: "As expected, concessions were made on both sides, but now the UK and the EU can move towards building a more honest and better relationship for the future."
