LONDON – Britain and the European Union on Monday reached a landmark dealon a transition phase that will see London follow the bloc’s rules fornearly two years after the Brexit divorce.
Chief EU negotiator Michel Barnier and his British counterpart David Davissaid the agreement, which European leaders will sign at a summit this week,was a “decisive step”.
The two sides also agreed on a “backstop” solution for the thorny issue ofthe future of the Irish border, just weeks after Prime Minister Theresa Maysaid no British premier could ever accept such an idea.
The deal, secured after what Frenchman Barnier called an “intensive”weekend of talks in Brussels, paves the way for talks on a future tradedeal to start next month and sent the pound surging.
“We were able this morning to agree, after all those days and nights ofhard work, on a large part of what will be an international agreement forthe orderly withdrawal of the United Kingdom,” Barnier told a pressconference with Davis.
The transition will begin on Brexit day — March 29, 2019 — and last untilDecember 31, 2020. During that period, Britain “will no longer participatein the European Union decision-making process,” Barnier said.
“Nevertheless, it will preserve the benefits, the advantages of the singlemarket and the customs union… and will therefore be required to respectall the European rules just like all member states do.”
Standing against a backdrop of British and EU flags, Davis told the newsconference that the 21-month transition “gives the certainty demanded bybusinesses and citizens across Britain and the European Union.” Firmsacross Europe that need to plan their business years in the future havebeen clamouring for both sides to reach a deal to avoid a cliff-edgedeparture, and Davis said it was “near enough” the full two years Britainhad demanded.
Davis said Britain would be able to sign trade deals with other countriesduring the transition, despite EU rules saying it should not be whilesubject to the bloc’s customs rules.
He added that Britain would now allow EU citizens moving to Britain duringthe transition phase to have the same rights to work and live in thecountry as those who arrived before, a policy London previously rejected.
May, who reached an outline deal on the divorce with the EU in December,said in a statement that the deal showed that “we can get an arrangementfor the future which will be in the interests” of both sides.
Both sides wanted the transition deal in place so that it could be signedoff by EU leaders at a Brussels summit on Friday, allowing the unlocking oftalks on the future British-EU relationship in April.
Britain meanwhile agreed to the EU’s “backstop” plan for the status of theIrish border, under which British-ruled Northern Ireland would remain partof the EU’s customs union if there is no better idea.
The thorny issue will, however, require further talks to be fully resolved,the two sides said. – Agencies