The European Union will reject the proposal by British Prime Minister Teresa Mai for a comprehensive trade agreement. Instead, the Block will prepare a more limited document similar to the CETA agreement with Canada.
The document presented by the European Commission on Wednesday states that it is only a basic free trade agreement for the United Kingdom.
Brussels will stick to the basic agreement in question and will not agree to a comprehensive one if the Government of May fulfils its promise to leave the Single Market and the customs union.
“To be outside the customs union and the Single Market will inevitably lead to friction. Differences in external duties and internal rules, as well as the lack of common institutions and a shared legal system, checks and controls, will have negative economic consequences,” the EC document says.
British lawmakers and business leaders warned the government in London that a similar agreement would not be suitable for Britain after Brexit since it does not cover the service area. They are 80% of the British economy.
The question of the border between Ireland and Northern Ireland also continues to be an obstacle on the path of negotiations. The EU proposal is to provide a “single regulatory space between the EU and the United Kingdom with regard to Northern Ireland”. It is stated that there will be no internal borders, duties and restrictions on imports and exports in this area.
However, this option has sparked debates in Britain because, according to the supportive Brexit politicians, this represents a border between Northern Ireland and the rest of the United Kingdom, and so London will not be able to leave the EU entirely.
Meanwhile, Donald Tusk gave a press conference in Luxembourg, where it commented on the guidelines of the work framework for future relations with the United Kingdom.
“A non-member country to choose and mix is an approach that we will not discuss. We will not sacrifice these principles. This is not in our interest,”
added Tusk, bearing in mind the wish of Britain to gain privileged access to the single market in some sectors, but to leave differences in others. Later, Tusk said “we do not want to build a wall” with Britain, but Brexit means separation.
He explained that the country would be the closest neighbour and the EU wants to remain a friend and partner in London.
The document, which is still to be approved by the Member States, outlines the path of negotiations for a future Free Trade Agreement with London.
