Thread by @JamesCrisp6

Some quick thoughts on David Frost's speech in Brussels tonight. The UK's chief negotiator said that agreeing to align to EU rules after Brexit would render Brexit pointless. The reason for Brexit is to have the freedom to diverge, he said.
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He argued that the EU's demand for more stringent level playing field guarantees on state aid, tax, labour rights and environment were unreasonable.

They also lacked democratic legitimacy as rules would not be laid down by Britain, he said.

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He said the UK wanted guarantees on fair competition to be made on the model used in other free trade agreements.

Canada has LPF on environment and state aid for example but this is not enforceable by trade deal enforcement mechanism and it is not dynamic alignment.
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EU negotiating mandate as it stands calls for dynamic alignment on state aid, which means UK rules change with EU's, despite having no say in drafting.

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Commission wants non-regression (meaning it won't fall below current standards) in other areas but EU governments moving to toughen that up. Trying to find a way for UK to update standards to futureproof FTA (but not call it dynamic alignment).

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Frost insisted the model used in other FTAs is only one suitable and that would respect sovereignty. He also said that there was no chance UK would become low standard economy.

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EU anxious UK will undercut EU standards for unfair competitive advantage. Frost said it is possible to be a competitor as well as political partner and this would bring economic boon to Europe as well as UK

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That won't wash with EU, which wants to protect its businesses. Brussels insists on stricter LPF guarantees, citing UK's proximity and interconnectedness with EU economy.

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It will also point to the political declaration, joint UK-EU document, setting goals for FTA. It calls for "robust" guarantees on fair competition.
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Frost said he hopes to change Michel Barnier's mind over his view that Brexit is damage limitation. He claimed "unproved" impact on trade would be offset by "implausible" burst in UK productivity which would spur more trade.
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Objectively Frost has a point when he says there is no point in doing Brexit and then not diverging from EU rules.

He also has a point that the FTA has unprecedented asks of Britain.

BUT.
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The fact is that the EU is the gatekeeper to its own market. It is under no duty to offer the same deal on the same terms as it has to other countries. The terms of access are its gift alone.
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As @DavidHenigUK & @SamuelMarcLowe point out right and wrong isn't a thing here.. it is just the EU doing what it does, guarding the interests of its members.

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@DavidHenigUK @SamuelMarcLowe So how to bridge the gap? The commission's asks, as opposed to tougher member states, appear more do-able and Frost talked of building a new relationship. Could that point to an acceptance of non-regression clauses?

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Still with France and European Parliament demanding dynamic alignment across the board, a compromise seems far off. And with trade talks starting in March and finishing at end of year - which is v v short - the clock is... well you know.

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It appears we at a stage where both sides are talking across each other without really listening. Perhaps that is what motivated this speech, which is pretty unusual for an advisor to give.
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Some EU diplomats are pessimistic, questioning what the point is of discussing an EU mandate for the trade talks that appears, unless someone moves, destined for the dustbin.
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If we take Frost's speech at face value & that divergence is central to UK vision of post-Brexit future, it looks like we will be headed for a very basic trade deal indeed.

No zero quotas and tariffs as EU offers (with LPF strings) but something a bit better than WTO terms
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If UK talk of Australia style deal (WTO terms) is genuine and not chest-beating, then it looks very possible.

And that's without talking about fishing.
telegraph.co.uk/politics/2020/…
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Frost said the UK will publish its vision for the future trade deal next week. Which will possibly be before the EU finalises its mandate on 25 Feb.

The scale of the divides should be made very stark then.

We reported this plan here in early Feb.
telegraph.co.uk/politics/2020/…
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Here's the write-up of tonight's speech, which did not particularly surprise some EU sources I spoke to. The commission may push back tomorrow at the midday press briefing..
ENDS
telegraph.co.uk/politics/2020/…

With apologies to @pmdfoster .