UK wins Brexit transition deal in return for Irish vow

By Gabriela Baczynska and Alastair Macdonald

 

Britain's Secretary of State for Exiting the European Union David Davis addresses a joint news conference with European Union's chief Brexit negotiator Michel Barnier in Brussels, Belgium March 19, 2018. REUTERS/Francois Lenoir

 

BRUSSELS (Reuters) - Britain and the European Union agreed on Monday to a transition period to avoid a "cliff edge"Brexit next year -- though only after London accepted a potential solution for Northern Ireland's land border that may face stiff opposition at home.

 

The pound surged on confirmation that Britain would remain effectively a non-voting EU member for 21 months until the end of 2020. Some business leaders, however, echoed a warning from EU negotiator Michel Barnier that the deal is legally binding only if London agrees the whole withdrawal treaty by next March.

 

That means solving outstanding issues, notably how to avoid a "hard border" that could disrupt peace in Northern Ireland. Britain says an EU-UK free trade deal to be sealed by 2021 can do that. But Dublin insists the Brexit treaty must lock in a "backstop" arrangement in case that future pact does not work.

 

Both sides are committed to keeping a free flow of people and goods over the intra-Irish border without returning to checkpoints, as during the three decades of violence in Northern Ireland. However, finding a practical solution for any customs checks needed post-Brexit has proved elusive so far.

 

The dispute with Ireland had threatened to derail May's hopes of a formal political endorsement of the transition deal by EU leaders when they meet in Brussels on Friday. A weekend of intensive talks, however, has broken the deadlock -- for now.

 

Prime Minister Theresa May, who relies on pro-British Northern Ireland members of parliament to pass her Brexitlegislation, had rejected a fallback proposed by Brussels three weeks ago. She said an EU offer to keep Northern Ireland under EU trade rules would isolate the province from the mainland.

 

However, her Brexit Secretary David Davis, in Brussels, has now signed up to following similar principles as negotiators resume work to find an "operational" compromise. Dublin said it was happy to accept as it bound London in to not "backsliding" on pledges May had made on the issue in December.

 

"We agree on the need to include legal text detailing the 'backstop' solution for the border," Davis told a news conference with Barnier. "But it remains our intention to achieve a partnership that is so close as to not require specific measures in relation to Northern Ireland."

 

The question will remain as to whether negotiations on the future trade partnership between Britain and the EU, which are expected to start only next month after EU leaders endorse Barnier's negotiating guidelines on Friday, can produce results -- and quickly enough to avoid having language in the withdrawal treaty that Britain, and May's Belfast allies, cannot accept.

 

Her Democratic Unionist Party allies said the "announcement" did not concern them as it left the border issue unresolved.

 

Longer term, the transition deal may buy people time but business still faces a "cliff edge" of uncertainty come 2021.

 

"DECISIVE DAY"

 

Davis agreed with Barnier that Monday's agreement was "decisive" and increased the odds on finding an orderly deal to avoid Europe's second biggest economy simply crashing out of the bloc in just over a year. He hailed the certainty that the deals on the transition and other issues, including rights for expatriate citizens, would offer businesses and individuals.

 

However, Barnier warned: "A decisive step remains a step; we are not at the end of the road and there still remains a lot of work to be done, including on Ireland and Northern Ireland."

 

The two sides issued a new, 129-page draft withdrawal treaty that was awash with green highlighter denoting final agreement on large areas of the legal text, including transition. Diplomats put the level of "green" agreement at over 80 percent.

 

The pound rose as much as one percent against the dollar to $1.4088 <GBP=D3>, its strongest since Feb. 16.

 

TRADE BENEFITS

 

Davis, who unlike May campaigned for Brexit, said he was pleased with EU agreement to let Britain negotiate and sign trade deals with other countries while remaining covered by EU common trade policy during the transition. Those deals would then take effect once Britain was free to do so in 2021.

 

He also welcomed wording that gives Britain some say in EU policy during the transition, notably on fishing quotas, and an ability to refuse to implement things it did not agree with -- some of his Conservative party allies have complained that the transition deal would leave Britain a "vassal state" of the EU.

 

The Leave Means Leave campaign accused him of "caving in" on the Irish border. Brexit firebrand Nigel Farage said "Theresa the Appeaser" had "let people down again" by agreeing to EU demands to keep free immigration during the transition.

 

More troublingly for May's prospects of steering the treaty through parliament, her own party's leader in Scotland, fierce Brexit critic Ruth Davidson, said the transition was a bad deal -- for letting the EU retain power over British fishing grounds.

 

The EU secured agreement that Britain would offer residence rights to EU citizens who arrive after Brexit but before 2021. However, Britain also notched some gains it had pushed for.

 

The 27 other EU member states have remained closely aligned, though they have differing interests which diplomats say are starting to emerge in discussions about future trade. All have backed Irish demands on the border, although some of Britain's nearest neighbours, with most trade to lose from Brexit, also pushed for a quick transition deal to help their own businesses.

 

But many EU diplomats said they felt London had largely agreed to their terms on most issues because of May's political imperative to get a transition deal that may calm the fears of businesses contemplating moving investments out of Britain.

 

One EU diplomat said: "The Brits have just given in on everything, so big was their drive to get the transition."

 

(Additional reporting by Elizabeth Piper in London, Phillip Blenkinsop, Samantha Koester and Alissa de Carbonnel in Brussels, Conor Humphries in Dublin and Jan StrupczewskiWriting by Alastair Macdonald; editing by David Stamp, William Maclean)

 

-- © Copyright Reuters 2018-03-20

Well if this is true, then the British people have once again been shafted, by our own treacherous politicians.

 So much for democracy.

 

 

 

Either way, Britain is on the path of FREEDOM!

Good for the pound,

3 hours ago, webfact said:

The pound rose as much as one percent against the dollar to $1.4088 <GBP=D3>, its strongest since Feb. 16.

which is all I care about, being a selfish S.O.B; well, that and the NHS. We all sit on our own ass as they say. 

 

https://www.gov.uk/government/news/david-davis-statement-eu-uk-article-50-negotiations-brussels-monday-19-march-2018

Sensible concessions by U.K. 

 

At least we will remain in the customs union!

Europe 2, UK 0.

Eire exploited the border prior to joining the EEC themselves, I guess they don't want the reverse happening.

https://www.gov.uk/government/uploads/system/uploads/attachment_data/file/691625/PM_Pres_Tusk_19.03.2018_001.pdf

As long the Brits are not able to solve the Irish border problem the Irish will still have their VETO to the whole treaty.

And the Brits will have to follow EU rules if they want to have a trade treaty later. So where is the freedom or any slight advantage or benefit??? It's a road of stupidity and blindness

5 hours ago, nausea said:

Good for the pound,

which is all I care about, being a selfish S.O.B; well, that and the NHS. We all sit on our own ass as they say. 

Screamed upwards 0.3 of a baht. Keeps going like this I might get that extra beer a month, sometime. ???

It's more kicking the can down the road a couple more years and avoiding having to make decisions now. Mainly, I suspect, because there are no good options.

 

Irish border means we will either have to accept a Brexit in name only and stay in CU and SM or separate Northern Ireland from rest of UK. Signing up for this now means the government can get people to accept it as a fait accompli when everyone realizes what we just agreed too.

43 minutes ago, sawadee1947 said:

As long the Brits are not able to solve the Irish border problem the Irish will still have their VETO to the whole treaty.

And the Brits will have to follow EU rules if they want to have a trade treaty later. So where is the freedom or any slight advantage or benefit??? It's a road of stupidity and blindness

 

What will they do? Veto Brexit?

 

Then what?

The UK government has already  has agreed a solution to the  Irish border problem. Lacking any marvelous technical solution which manages  escape from the woodwork over the next 2 years. NI will maintain regulatory alignment with the rest of the EU.

 

So we either have a border in the Irish Sea or rest of UK stay in regulatory alignment to. 

 

That is what we just agreed to.

1 hour ago, billd766 said:

 

What will they do? Veto Brexit?

 

Then what?

Don't ask me. I'm not a Brit as you know. Brits have to face even the most unexpected. If there would be a hard border.....no treaty, no Brexit. Easy as that. But wait,,,,Corbyn will mend it.

1 hour ago, tebee said:

separate Northern Ireland from rest of UK.

Yeah......REUNIFICATION of IRELAND.....that's it!

8 hours ago, nausea said:

Good for the pound,

which is all I care about, being a selfish S.O.B; well, that and the NHS. We all sit on our own ass as they say. 

I know you don't want it but with a soft Brexit the pound will recover greatly.  With a hard Brexit it will likely fall further.  Not trying to score points here, just appealing to your "selfish S.O.B side". 

 

2 hours ago, tebee said:

The UK government has already  has agreed a solution to the  Irish border problem. Lacking any marvelous technical solution which manages  escape from the woodwork over the next 2 years. NI will maintain regulatory alignment with the rest of the EU.

 

So we either have a border in the Irish Sea or rest of UK stay in regulatory alignment to. 

 

That is what we just agreed to.

More complex that that.  If NI maintains autonomy with the EU then Scotland will demand the same.  Davis and May have pledged no hard border with Ireland and none between NI and the rest of the UK.  By doing that they put themselves in an impossible position.  Then by agreeing to the EU's backstop red line (to get the transition period agreed) they are once again on the back foot.

 

Britain has been paddling their way up the creek and they have now thrown away the paddle!

 

 

11 hours ago, nontabury said:

Well if this is true, then the British people have once again been shafted, by our own treacherous politicians.

 So much for democracy.

 

 

 

Well some of us have been saying from day one that you simply cannot achieve a successful Brexit based on the criteria laid down above without creating chaos and financial suicide.

 

With the latest state of play (could change tomorrow) it looks like the customs union stays, in one form or another and that means free movement of people.  The billions of pounds for leaving has also been agreed.  It also means that Britain will have to abide by EU rules as far as trade is concerned. AND no seat at the table. Begs the question, yet again, what is Brexit actually achieving?

58 minutes ago, dunroaming said:

........ what is Brexit actually achieving?

Pretty well zilch, other than costing a  ton of money and peoples jobs.

 

But they'll be able to say we've left the EU - even though we haven't really.

2 hours ago, dunroaming said:

autonomy with the EU

Do you mean that? 

21 minutes ago, Grouse said:

Do you mean that? 

Well for no border as such means that NI stays in the customs union and single market and continues to abide by EU laws.  Maybe not autonomy as such but I was having a rant 

34 minutes ago, dunroaming said:

Well for no border as such means that NI stays in the customs union and single market and continues to abide by EU laws.  Maybe not autonomy as such but I was having a rant 

Indeed! May has boxed herself into a corner. NI must surely remain.

 

Scotland will demand the same

 

Then London

 

Its surely all over isn't it?

5 hours ago, sawadee1947 said:

Yeah......REUNIFICATION of IRELAND.....that's it!

Well that would be one solution, unfortunately for you and your kind, the majority of the inhabitants of the north are very much against unification. And the credit for that must surely go to the IRA.

3 hours ago, dunroaming said:

Well some of us have been saying from day one that you simply cannot achieve a successful Brexit based on the criteria laid down above without creating chaos and financial suicide.

 

With the latest state of play (could change tomorrow) it looks like the customs union stays, in one form or another and that means free movement of people.  The billions of pounds for leaving has also been agreed.  It also means that Britain will have to abide by EU rules as far as trade is concerned. AND no seat at the table. Begs the question, yet again, what is Brexit actually achieving?

I tend to agree with the gist of what you say. The so called negotiations have been a complete farce, orchestrated by a remoaner in the form of T.M.

 

 

 

5 hours ago, sawadee1947 said:

Yeah......REUNIFICATION of IRELAND.....that's it!

 

 

Nice..... how do you see that working out?

The demographics are such that there will soon be a majority  in the North supporting reunification. Indeed in one recent poll, if the choice was between staying in the EU by reunification or leaving with the rest of the UK, there was strong support for reunification now.  

https://www.huffingtonpost.co.uk/entry/northern-ireland_uk_5a4d0d92e4b0df0de8b06eaf

46 minutes ago, nontabury said:

I tend to agree with the gist of what you say. The so called negotiations have been a complete farce, orchestrated by a remoaner in the form of T.M.

 

Orchestrated by May indeed but look at the people who backed her for PM including Johnson and Rees Mogg.  Then consider that she appointed dedicated Brexiteers like Davis, Gove and Fox to oversea the divorce.  Then consider her rhetoric threatening to walk away if she didn't get a good deal and the infamous "Brexit means Brexit" but never saying what Brexit actually meant.

 

At the moment (and for some time) May has been severely weakened and a leadership challenge today would see her gone in a heartbeat.  The perfect opportunity for RM or Johnson to strike.  But will they?  I doubt it very much.  They have seen the way the EU have dug their heels in over trade deals and taken the hard line they threatened to take from day one.  They know they couldn't pull off a Brexit success either.

 

What about a snap election?  Well that would see May gone but also, probably, the Conservatives so it is unlikely to happen.

 

So what now?  Carry on conceding? keep kicking the can down the street? walk away with no deal at all?  Still keep chanting "We are leaving, get used to it"?

 

I am as upset as any Brexiteer.  This is not what any of us want.

 

 

Orchestrated by May indeed but look at the people who backed her for PM including Johnson and Rees Mogg.  Then consider that she appointed dedicated Brexiteers like Davis, Gove and Fox to oversea the divorce.  Then consider her rhetoric threatening to walk away if she didn't get a good deal and the infamous "Brexit means Brexit" but never saying what Brexit actually meant.
 
At the moment (and for some time) May has been severely weakened and a leadership challenge today would see her gone in a heartbeat.  The perfect opportunity for RM or Johnson to strike.  But will they?  I doubt it very much.  They have seen the way the EU have dug their heels in over trade deals and taken the hard line they threatened to take from day one.  They know they couldn't pull off a Brexit success either.
 
What about a snap election?  Well that would see May gone but also, probably, the Conservatives so it is unlikely to happen.
 
So what now?  Carry on conceding? keep kicking the can down the street? walk away with no deal at all?  Still keep chanting "We are leaving, get used to it"?
 
I am as upset as any Brexiteer.  This is not what any of us want.
 
 

Interesting take on this from Bloomberg earlier on this:

https://www.bloomberg.com/news/articles/2018-03-20/why-is-rees-mogg-being-so-reasonable-on-brexit-deal-simple-math


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To be honest, I've not really been following all the machinations, but I'm surprised the DUP agreed to this.