Brexit round-up – 07/05/20

UK could give up on “zero-tariff, zero-quota” deal

Michael Gove has insisted that there will be no extension to the transition period and in order to reach a trade deal with the EU by the end of the year the UK may be willing to accept tariffs on goods. He said the UK was “prepared to modify our ask”, to regain autonomy over “level playing field” regulations on workers and the environment. “It is one of the ways in which we would be prepared to show leg.” In giving evidence to the Lords EU Committee he said that the UK might “end up like Canada with tariff on a possible number of goods.” He confirmed that there would need to be border checks in the Irish Sea and suggested there may be “flexibility” that might extend the settled status scheme for EU citizens in the UK if necessary, because of the impact of the coronavirus pandemic.

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Progress “has not been good” in negotiations

Simon Coveney has warned that the coronavirus pandemic has made securing a comprehensive post-Brexit trade deal even more important but said that trade talks progress is not good. With the UK and the EU having only two more scheduled negotiation rounds ahead of an assessment he said that “Time is short and there’s an awful lot to do.” He further said that “In order to get a trade deal we need to know there’s a level playing field so businesses in Ireland are not disadvantaged.” He said that he is concerned that unless significant progress was made soon, the UK and EU would reach “another crisis point” in the negotiations.

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US-UK trade talks begin

Trade talks between the UK and the US began this week, after a delay due to coronavirus, and are expected to last for two weeks with further sessions set to take place approximately every six weeks. The first round of discussions will cover trade in goods and services, digital trade, two-way investment and support for small and medium-sized businesses. Donald Trump has said he hopes to negotiate a quick deal but UK Ministers say they will drive a “hard bargain” as they seek to lower tariffs on exports and boost trade in services. International Trade Secretary Liz Truss said “Increasing transatlantic trade can help our economies bounce back from the economic challenge posed by coronavirus.” As we sit down at the negotiating table, be assured that we will drive a hard bargain to secure a deal that benefits individuals and businesses in every region and nation of the UK.” Shadow International Trade Secretary Emily Thornberry said “Labour will insist that any proposed trade deal is subject to proper scrutiny, and we will not let the interests of the British people be sacrificed to boost the profits of US corporations.”

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If you have any questions about any of the issues which are raised, or would like to discuss your own organisation’s options during the Brexit process, please do not hesitate to get in touch.