Get 40% Off
👀 👁 🧿 All eyes on Biogen, up +4,56% after posting earnings. Our AI picked it in March 2024.
Which stocks will surge next?
Unlock AI-picked Stocks

EU's draft new deal envisages close ties with Brexit Britain

Published 13/03/2020, 13:08
Updated 13/03/2020, 13:11
EU's draft new deal envisages close ties with Brexit Britain

By Gabriela Baczynska

BRUSSELS (Reuters) - The European Union's new deal with Brexit Britain envisages a tight trade and security relationship, according to a draft seen by Reuters on Friday, despite London saying it is seeking looser ties.

Britain left the EU in January and is in negotiations with the bloc over a new partnership to take effect after a status-quo transition period runs its course at the end of the year.

The draft, prepared by the bloc's executive Commission before a second round of talks next week, includes a reference to so-called "level playing field" provisions to ensure fair competition by keeping rules aligned, which London rejects.

"The Parties recognise that the establishment of conditions that ensure a level playing field between the Parties is necessary for trade and investment," the 441-page draft read.

On fisheries, another contentious point between the estranged allies, it envisages reciprocal access to waters. Negotiations would be held each year by Dec. 10 on fishing opportunities for the following year.

In case of trade disruptions, the bloc would be allowed to impose protective measures as soon as 15 days after notifying Britain, it also read.

The draft comes with an accompanying 17 pages of a proposed new partnership on "foreign policy, security and defence", which recognises, however, that "the United Kingdom has expressed clearly that it does not wish to engage" in such negotiations.

While the EU is pushing to keep Britain in close touch from 2021, Prime Minister Boris Johnson has said he is prepared to default to World Trade Organization rules, which include tariffs and quotas, if London and the bloc are unable to seal a deal.

3rd party Ad. Not an offer or recommendation by Investing.com. See disclosure here or remove ads .

Johnson also demands that Britain leave the jurisdiction of the EU's top court. The EU draft envisages an arbitration panel to resolve disputes with Britain, but says the panel must be bound by rulings on EU law by the European Court of Justice.

Britain has said it would present its own draft of the future deal before the second round, which is due to start on March 18. Face-to-face talks have now been cancelled because of the coronavirus epidemic.

"We are looking at how the discussions can take place using an alternative forum such as video conferencing," a spokesman for Johnson said on Friday.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.