Johnson Says U.K. Seeks `Special' EU Relationship: Brexit Update
Davis Says U.K. Won't Undercut EU on Regulations: Brexit Update
(Bloomberg) -- David Davis promised that the U.K. would lead a “race to the top” rather than undercutting the European Union by tearing up regulations, as Theresa May’s government shifts toward a final negotiating position on Brexit.
In a speech in Vienna, the Brexit secretary made the case for frictionless trade based on mutual trust between regulators on each side, pointing out that it could also offer a solution to the delicate Irish border issue. Soon after, the Cabinet minister in charge of agriculture, Michael Gove, stuck to the theme in a speech to the National Farmers’ Union in Birmingham, saying that no future trade deal would undercut environmental or animal standards.
It’s all happening before Prime Minister Theresa May gathers her core team this week to finally thrash out what kind of trade deal the U.K. will seek from the EU. It looks very much like staying close to EU rules in many cases -- very close in some -- while breaking free in others.
Foreign Secretary Boris Johnson is also taking questions in Parliament, and we’ll be following his comments here. Times stamps are London time.
Johnson: U.K. seeks ‘special relationship’ with EU (3:17 p.m.)
Foreign secretary also says “there’s no reason” why the U.K. and EU can’t have frictionless trade if Britain leaves both the customs union and single market.
Gove says no risk to standards from trade deals (12:08 p.m.)
“We won’t be signing trade deals that mean that British producers are undercut on environmental or animal welfare standards,” Gove says in Birmingham.
He also says he wants foreign farm workers to stay after Brexit, setting out plans to provide special immigration rules for those British farms that rely on migrant workers to ensure they remain profitable.
Davis says withdrawal agreement tied to trade deal (10:52 a.m.)
Asked about an exclusive by Tim Ross last night, that the government has a plan to withhold payments to the EU unless it secures a deal on trade, Davis said the withdrawal agreement and the future relationship are intertwined.
“Article 50 says that the withdrawal agreement has to take into account the future relationship, so you have to have the future relationship for that to happen. They are bound up in one, they’re not separate issues.”
Mutual rule recognition key to Ireland border (10:45 a.m.)
Davis also says the government is planning to conform to the Good Friday Agreement on Northern Ireland in any Brexit outcome.
“I’m not conscious of anybody talking down the Good Friday Agreement. Everything we are doing is aimed at ensuring we meet every aspect of it.”
No ‘Dystopian Fiction’ for U.K. after Brexit (10:35 a.m.)
There’s the key quote flagged by his office overnight. Davis says U.K. already exceeds EU regulations in some areas, and there has to be trust on both sides. Mutual recognition of each other’s regulations is key to the future economic relationship. Trade must be as open and “frictionless” as possible.
Davis also references Ireland for the first time, which will be a key test of just how frictionless trade can be.
U.K. and EU must not be ‘suspicious competitors’ (10:30 a.m.)
Both sides must be able to work together to develop new regulations in areas of technology. “This is an area where we should be respectful partners, not suspicious competitors”
Brexit is about preparing for more globalization (10:24 a.m.)
U.K. is facing a new global context, with a new phase of globalization imminent, Davis says. Robots, artificial intelligence means “we must be ready.” The government is trying to make sure the U.K. can lead that process and Brexit is a part of that, he says.
Though this isn’t answering the question that EU diplomats will have, which is why the U.K. has to leave the bloc to achieve this.
Davis starts with an olive branch on regulations (10:16 a.m.)
Davis says U.K. will remain “dependable, open, fair, a bastion of parliamentary democracy.” Wants the U.K. to continue to work together as partners and friends. U.K. is determined “to lead a race to the top in global standards.”
Davis already running 20 mins late (for now) (10:05 a.m.)
In the meantime, here’s a colorful profile of Davis in the Guardian which looks at whether the secretary has been overshadowed by May’s top Brexit adviser Oliver Robbins.
“For all those supporters who see him as a Brexit talisman, vital to keeping the show on the road, there are many who wonder if he has become the government’s fall guy; a lightning rod for criticism, whose substantive role as chief negotiator has been eclipsed by his former permanent secretary.”
He hasn’t even spoken, but some already react (9:52 a.m.)
On her way to a meeting of finance ministers in Brussels, Sweden’s Magdalena Andersson was asked about her thoughts on the U.K. sticking to standards and regulations after Brexit.
Question: Do you trust the U.K. to play by the rules after Brexit?
Answer: “I always trust the British politicians, of course. But what one politician says today, you might have new governments and new politicians in the years to come. So of course I will trust David Davis, but we don’t know who will come after him some day in the future.” Put diplomatically, the EU might be looking for something more than words.
Coming Up:
* Pro-Brexit Environment Secretary Michael Gove addresses National Farmers Union
conference at 10:15 a.m.
* Trade Secretary Liam Fox addresses manufacturing conference at 11:55 a.m.
* Labour leader Jeremy Corbyn speaks there at 1:30 p.m.
* Foreign Secretary Boris Johnson takes questions in Parliament at 2:30 p.m.
Earlier:
* U.K. Has Plan to Halt Brexit Cash If EU Backslides on Trade Deal
* U.K. Promises Not to Torch EU Regulation in Post-Brexit Britain
* Corbyn Vows to Stop Hostile Bids and Humble the City of London
* May Said to Set Out Brexit Vision to British Audience Next Week
* Theresa May’s Vision Starts to Emerge for Post-Brexit Reality
To contact the reporters on this story: Stuart Biggs in London at sbiggs3@bloomberg.net, Tim Ross in London at tross54@bloomberg.net, Boris Groendahl in Vienna at bgroendahl@bloomberg.net.
To contact the editors responsible for this story: Emma Ross-Thomas at erossthomas@bloomberg.net, Heather Harris at hharris5@bloomberg.net, Flavia Krause-Jackson at fjackson@bloomberg.net, Stuart Biggs
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