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Despite the EU’s chief negotiator Michel Barnier describing progress made in trade talks with the UK as disappointing, senior government ministers in the UK continue to insist that there will be no extension to the Brexit transition period.
In a meeting this week with a Westminster committee of MPs looking at the future relationship with the EU, British cabinet minister Michael Gove outlined his belief that it was “entirely possible” to conclude negotiations by the end of this year.
He told MPs he was confident a trade deal would be done, putting odds on that of “better than 2 to 1”.
Gove was asked on a number of occasions about calls from industry, including from some in agri-food, for an extension to the transition period, given the pressure everyone is under due to COVID-19.
However, while accepting the impact of the virus, he suggested many of these organisations were against Brexit in the first place – “There is a constituency that want to remain under the EU legal order,” responded Gove.
He went on to argue that many political leaders across Europe actually want the issue dealt with, so that they can move on to building their post-coronavirus economies next year.
In addition, he said an extension would only reduce the incentive to get a trade deal done, and it would lengthen the period that the UK is subject to EU law, without any say over those laws.
It would also mean the UK continuing its contributions to the EU budget, which he said would cost billions of pounds. This money would be better spent on the NHS and supporting the UK economy, suggested Gove.
Sticking points
In terms of the two major issues to be overcome, he talked about the EU insistence on a level playing field when it comes to the likes of state aid, and also the problem area of fishing rights.
The EU wants indefinite access to UK coastal waters, similar to the current situation, while the UK wants that access to be negotiated annually, as is done with the likes of Iceland, Norway and the Faroe Islands.
The argument put by Gove is that the UK should be seen by the EU as an independent country, and offered the same free-trade deals as the likes of Canada or Japan. “We are asking for a series of ‘off the peg’ arrangements that should be relatively rapid to secure. We are not going to change our position on this – we are being treated more like a country that is hoping to join the EU” he said.
If the UK is to extend the Brexit transition period (by up to one or two years), this needs to be requested before the end of June.
Spat over EU office in Belfast
UK cabinet office minister Penny Mordaunt has written to senior EU officials rejecting a request from them to establish a permanent office in Belfast for EU officials.
The primary role of the EU officials would be to oversee the UK implementation of the Irish protocol, and specifically the checks done on goods entering NI from Britain. Under the protocol, agreed by the UK and EU last year, NI will be required to follow EU rules for goods, allowing frictionless trade to continue across the Irish border.
When asked about the EU request for a Belfast office, Minister Gove retorted that there was no need to establish “a mini EU embassy in Belfast”.
He said the text of the protocol clearly set out that checks were to be done by UK officials, although EU counterparts do have a right to be present.
During MP questions, Gove also acknowledged that food-based products of animal origin could face more friction when going from Britain to NI, than is currently the case. Trade in the opposite direction would be “unfettered” he said.
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