EU lead negotiator Michel Barnier has holed Theresa May’s ultra-soft Brexit plan below the waterline, rejecting her proposal — seen as a major concession by Brexiteers — for Britain to collect customs duties on the EU’s behalf.
The Prime Minister had sought to avoid the creation of a so-called ‘hard’ economic border between British Northern Ireland and the EU’s Irish Republic — billed as an absolute requirement in any deal, despite its relative unimportance to trade — by offering to collect tariffs for goods destined for the EU on the bloc’s behalf.
The proposal was seen as a major concession and even an unacceptable act of submission by Brexiteers — but the EU has elected to regard it as an imposition.
“Maintaining control of our money, law and borders also applies to the EU customs policy,” the Frenchman said at a press conference with the increasingly irrelevant new Brexit Secretary, Dominic Raab — a clear jibe at Brexit supporters and their goals.
“The EU cannot and will not delegate the application of its customs policy and rules, VAT and duty collection to a non-member who would not be subject to the EU governance structures,” he insisted.
“Any customs arrangements or customs union – and I have always said that the EU is open to a customs union – must respect this principle.”
Barnier: ‘The EU cannot — and the EU will not — delegate the application of its customs policy and rules, VAT and excise duty collections to a non-member who would not be subject to the EU’s governance structures’. Then says U.K. staying in Customs Union ok. EU aim from start.
— Andrew Neil (@afneil) July 26, 2018
Barnier indicated that the United Kingdom could maintain the so-called “frictionless” border with the Republic of Ireland by remaining in the EU’s Customs Union — although this would make it extremely difficult for Britain to take back control of its trade policy from Brussels even theoretically, and break a key Brexit pledge in Theresa May’s election manifesto.
Commentators such as BBC presenter and Spectator editor Andrew Neil have suggested the move indicates that the EU will attempt to squeeze the Prime Minister to the maximum possible extent, even after her Chequers plan already handed away swathes of control over the British economy to the EU.
“So the Brexit talks stand-off begins. Barnier rejects May’s Customs plans but indicates UK could stay in the Customs Union,” he observed.
“May knows she’s Tory toast if she agrees to that. So what next?”
Barnier also slapped down a suggestion by Raab that Britain’s agreement to pay the EU a massive exit settlement of at least £39 billion (maybe significantly more) was conditional on the EU agreeing on a constructive trade agreement, saying Brussels considered that a done deal already.
His statements lend weight to the concerns expressed by Raab’s predecessor, David Davis, that the Chequers proposals gave away too much and would just “lead to further demands for concessions”.
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