Brexit Update: 21st August 2020
Cian Hassett, UK Market, Bord Bia - The Irish Food Board
EU’s Michel Barnier says Brexit deal looks ‘unlikely’ at this stage. The European Union and U.K. raised serious doubts about the chances of striking a deal on their future relationship after a testy week of negotiations that saw little progress. “At this stage an agreement between the U.K. and the EU seems unlikely,” the bloc’s chief negotiator Michel Barnier said after talks broke up on Friday. “Too often this week it felt as if we were going backwards more than forwards.” Michel Barnier has said an agreement is required by the end of October so it can be ratified before the UK's current post-Brexit transition period ends, in December. The UK has ruled out extending the December deadline to reach an agreement.
The U.K. tried to unlock the deadlock this week by submitting a confidential draft of the final deal, setting out where the major differences remain. The EU had resisted doing this, saying the two sides were still too far away on the fundamental issues. Brussels has rejected the UK’s opening demands for continued wide-ranging access to the EU for British truckers. The European Commission has told EU member states that the British request for trucking access was “fundamentally unbalanced”.
The UK wants British truckers to be allowed to continue making pick-ups and drop-offs both inside EU member states — known as “cabotage” — and between them, according to two people familiar with the negotiations. The commission has warned member states that the UK request for cabotage rights is too similar to pre-Brexit levels of access to the EU single market and does not commit to enough level playing-field guarantees to ensure EU hauliers are not undercut.
This week's talks are the last scheduled negotiating round ahead of the autumn, although both sides have previously said talks would continue in September.
Northern Ireland Protocol
The UK government published guidance on the movement of goods on Friday the 7th of August under the NI protocol. It is important to note that this is not the whole of the guidance yet. Some of the key topics are still under discussion with the EU.
Northern Ireland to/from the EU
- There will be no change for the movement of goods covered by the Protocol between Northern Ireland and EU Member States, including Ireland. That means there will be no new paperwork; no tariffs, quotas or checks on rules of origin; nor any barriers to movement within the EU Single Market for goods in free circulation in Northern Ireland.
- Northern Ireland businesses will therefore enjoy unfettered access to the whole of the UK market as well as the guaranteed ability to trade freely within the EU Single Market.
- This unique arrangement, providing Northern Ireland businesses with both unfettered access to the UK market and free access to EU markets, reflects the unique circumstances of Northern Ireland and the Belfast (Good Friday) Agreement.
- More information can be found here.
What’s next – Key Dates:
24th August: Further informal talks expected between EU and UK.
7th September: Round 8 of UK-EU negotiations in London (informal talks w/c 14th & 21st September)
28th September: Round 9 of UK-EU negotiations in Brussels
15th – 16th October: Meeting of the European Council
Nov-Dec: Potential period for ratification of a deal and preparations for implementation OR scaling up of UK readiness to trade on WTO terms.
31st December: Transition period ends and UK reverts to trading on WTO terms if no deal is secured.
1st Jan 2021:
- NI Protocol comes into effect
- Phased UK Border Operating Model comes into effect – detailed record keeping required and declarations/tariffs (can be deferred up to 6 months)