Brexit Talks Marred by Accusation U.K. Is Running Down the Clock

Barnier Criticizes U.K. for Failing to Engage in Brexit Talks

Ian Wishart

25 Apr 2020, 07:14 PM IST

(Bloomberg) -- A row over whether the U.K. is deliberately running down the clock on Brexit negotiations by refusing to engage with the European Union overshadowed the first round of talks since the coronavirus outbreak stopped face-to-face meetings.

After a week of discussions by video link, EU chief negotiator Michel Barnier accused the U.K of failing to engage “substantially” in several key areas while refusing to extend the deadline to reach a deal. London countered by saying it won’t sign up to terms the EU doesn’t demand of other countries.

With officials struggling to do much more than identify the areas of disagreement, the chances of the talks failing or being delayed are increasing. Prime Minister Boris Johnson has refused to extend the post-Brexit transition period beyond the year-end, meaning Britain is increasingly likely to leave the bloc without a trade deal in place, spelling disruption for businesses already grappling with the coronavirus crisis.

“The U.K. didn’t wish to commit seriously on a number of fundamental points,” Barnier told a news conference in Brussels on Friday after the end of the talks. “The U.K. cannot refuse to extend the transition and at the same time slow down the discussion on important areas.”

Gamblers at online betting exchange Smarkets Ltd. now put the probability of the talks failing at 85%, and the likelihood of a delay at 69%. Failure to strike an accord by Dec. 31 would mean the return of tariffs and quotas as well as the imposition of bureaucratic barriers for businesses. Aviation, counter-terrorism cooperation and arrangements for people living and working in each other’s countries all risk being left in limbo.

Fundamental Disagreements

Although the U.K. formally left the EU three months ago, it has a period of grace until the end of the year for the two sides to draw up an agreement on their new relationship. But the disagreements are fundamental, with even the structure of the potential deal a major stumbling block.

In summary: the four areas of disagreement
The level playing field. The EU wants the U.K. to commit to measures to prevent unfair competition. The U.K. argues the EU hasn’t made these a requirement in previous trade deals. Governance. Britain wants to strike a free trade agreement and leave other issues to a series of mini deals. The EU wants a single agreement. Judicial co-operation. The U.K. says it wants to withdraw from the European Court of Justice and the European Convention on Human Rights, something the EU opposes. Fishing. The U.K. refuses to sign up to a deal that would see its fishing industry placed under the same restrictions it was subject to as an EU member.

In summary: the four areas of disagreement

The level playing field. The EU wants the U.K. to commit to measures to prevent unfair competition. The U.K. argues the EU hasn’t made these a requirement in previous trade deals.
Governance. Britain wants to strike a free trade agreement and leave other issues to a series of mini deals. The EU wants a single agreement.
Judicial co-operation. The U.K. says it wants to withdraw from the European Court of Justice and the European Convention on Human Rights, something the EU opposes.
Fishing. The U.K. refuses to sign up to a deal that would see its fishing industry placed under the same restrictions it was subject to as an EU member.

U.K. officials said it would be easy to strike a quick free trade agreement -- if the EU withdraws its demands on other topics, particularly on the so-called level playing field.

“Limited progress was made in bridging the gaps between us,” the British government said in a statement after Barnier spoke. “We will not make progress on the so-called ‘level playing field’ and the governance provisions until the EU drops its insistence on imposing conditions on the U.K. which are not found in the EU’s other trade agreements and which do not take account of the fact that we have left the EU as an independent state.”

Barnier said the U.K. team keeps telling him they are negotiating as the EU’s “sovereign equals” -- but “the reality of this negotiation” is that is it one between a market of 66 million consumers and the EU’s 450 million, he said.

The U.K. insisted it is ready to keep talking but will not agree to the EU’s “unprecedented” demands which “do not take account of the fact that we have left the EU as an independent state,” it said in a statement. “We will continue to negotiate constructively to find a balanced solution which reflects the political realities on both sides.”

Only two more rounds of virtual talks, the next on May 11, are scheduled before a summit between Johnson and the EU in June. That’s the deadline for the U.K. to seek an extension beyond 2020 and for the two sides to get an agreement on fishing, which the EU has made a condition for an overall deal.

Here, no progress has been made. The U.K. argues the current system is unfair because it allows EU boats to catch more in British waters than domestic vessels -- but European countries are keen to keep the status quo.

“The EU will not agree to any future economic partnership that does not include a balanced, sustainable and long-term solution on fisheries” Barnier said. “That should be crystal clear to the U.K.”