“The EU effectively ended trade talks last week” - Michael Gove tells Marr “door is ajar if EU changes it’s position - but we are ready to leave on Australian terms”...
Marr: “but could be called Mongolian or Afghan terms”
Gove says he backs promising UK during referendum “we hold all the cards” though he tells Marr “we hold cards”
Marr: “Do you think the public is going to thank you for leaving the EU without any trade deal the middle of a global pandemic?”
Gove: “Public like me would rather we had an FTA but would not thank us if Eu still in control .. ultimately want us to take back control”
Gove made argument in 2016 when he said UK needed and would get a deal, he meant withdrawal deal, not a trade deal... Marr picked him up on that and was this a “tell”? Marr: We haven’t got a trade deal? “Not yet” said Gove a few moments after saying negotiations over...
For those trying to divine how much is theatre - can’t do much better than on record on camera from France’s Europe minister/ Macron confidant. He’s started tweeting extracts from his interview with me on Friday night - interesting what he chooses to stress - “ready to negotiate”
But also his quotes on French fishermen in Portbessin matter as much as those in Dover, that things will change on Jan 1 deal or no deal and he says, No deal worse for UK than EU ....
Here’s my thread on full interview where we got to talk in depth about the crunch point on state aid, fishing, whether France would be “pragmatic” on checks post a No Deal, indeed how soon negotiations might restart after that
Government: “it’s a question of semantics at the end of the day, sure” on the use of the phrase “Australia-style terms” to describe no trade deal/ tariffs with EU - also was headline of the overnight press release
use of “Australia-terms” is even more puzzling, because it is obviously designed to reassure...
But actual point of campaign launched today is to get 10,000s of UK businesses to prepare & react.
Surely they want to say very directly “prepare for tariffs”...“prepare for checks”?
Similar issue Govt ad campaign, which some say looks more like kwik-fit tyre change ad - is Govt communicating this is a really big deal, potentially major business risk which will require weeks of prep? Or is it something you can sort out on the way back home from shops one Sat?
Coming up on @BBCNewsnight with me - exclusive first UK TV interview with Macron’s Europe minister Clement Beaune responding to No 10 saying talks over & Barnier should not come to London. on fish, state aid, internal market bill, and a “misunderstanding” about Canada ...
So progress made over past week, areas of compromise were starting to open up on state aid/ governance.
But PM’s Oct 15 deadline gambit all about getting EU summit to adapt Barnier mandate - didn’t happen... in that respect it is worth careful look at what minister told me yday:
1. Asked reaction to “talks over” & Barnier shouldn’t travel to London @Cbeaune tells me “still willing to discuss” & “now up to UK to say whether its worth discussing”.. if UK say “we’re ready to do another round of discussion” we “willing and happy”
Charles Michel EUCO President specifically singles out level playing field and uses example of car industry, and the UK wanting freedom to subsidise (ie state aid) at same time as expecting full tariff free access to single market, says it risks 100,000s of jobs
Barnier - “our positions have been crystal clear from day 1 - if you want access to our market of 450 million, there must be a level playing field” says EU27 remain united and calm
It was often said privately in the aftermath of the 2014 referendum, at SNP conferences etc, that they’d have to wait until polling got to 60% before a renewed referendum push. This is one poll, but overall trend in polls is clear...
Also might interact with trade negotiations..
Within Cabinet - argument about Union weighing heavy on those leaning for deal...
Even the perception No Trade Deal would create specific additional problems herr for Govt ahead of elections next May, could affect how likely EU side see as UK actually going for “Australia terms”
NEW
UK push on tariff free electric/ hybrid car trade with non-European battery rejected in EU draft circulated with member states, obtained by BBC.
Essentially some UK car exports to EU will attract tariffs with or without deal from Jan, after rejection of 70% foreign parts ask
UK asked for a transition of vehicles with up to 70% non-European parts (essentially Japanese batteries/ hybrid systems) to be eligible... after specific asks from within UK car sector.
EU draft says 45% from January (ie majority UK & EU)... (same as petrol/diesel)
... EU draft goes further, from 2027, any electric or hybrid would have to have EU or UK battery, to be eligible for tariff free trade..
Clear strategic effort to prevent UK from being offshore assembly hub for Single market for cars with Chinese or SE Asian electric systems
Stressing this is not a full national lockdown... but cant accept “intolerable death toll” of letting disease rip damaging NHS.
Can’t shield elderly while letting it rip in younger population.
Very High alert level, closing pubs and bars, but leaving open retail, schools and universities - applies to Liverpool City Region from Wednesday. Gyms, betting shops also to close there.