The EU has just published its guidelines for negotiations on the future UK-EU agreement (goo.gl/96Xd9e). My thoughts:
1. It's ambitious: EU wants an extensive FTA, but also special partnerships on security and defence; law enforcement and judicial matters; exchange of information. UK gov. will be happy.
2. But there are conditions:
(i) *Lots more* similar rules (including on competition, tax, state aid). In other words, no to the UK gov's 'three baskets' approach.
(ii) a robust institutional set up to supervise and enforce rules & resolve disputes.
(i) *Lots more* similar rules (including on competition, tax, state aid). In other words, no to the UK gov's 'three baskets' approach.
(ii) a robust institutional set up to supervise and enforce rules & resolve disputes.
3. Why? EU wants to avoid institution-free bilateralism that Switzerland currently enjoys as trade can be inefficient: delays, friction and higher costs for businesses.
4. Not so new: EU firm that negotiations on future deal can only begin once all withdrawal issues have been resolved (NI/Irish border; Gilbraltar; citizens’ rights during transition).
5. EU will remain a constant focus for UK even after transition: UK gov will need to build up diplomatic presence in Brussels and member states. Regular dialogues not a substitute for seat at the table.
