Major Brexit blow to Theresa May as EU chief Michel Barnier flatly rejects her customs plan
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Loading... - Eugenie Jolie
- 26 Jul 2021
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Theresa May’s Brexit plan was dealt a major blow today, as the EU flatly rejected her suggestion for a customs deal.
The Prime Minister’s Chequers proposals suggested a situation where the UK would collect excise duties at the border on the EU’s behalf.
But after a day of negotiations with Brexit Secretary Dominic Raab, Brussels chief negotiator Michel Barnier unceremoniously killed the idea.
At a press conference following the day’s negotiations, he said: “The EU cannot and will not delegate 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.
“Any customs arrangements or customs union - and I’ve always said the EU is open to a customs union - must respect this principle.
“And in any case, a customs union, which would help to reduce friction at the border, would come with our common policy for goods.”
He added: “The UK wants to take back control of its money, law and borders, and we will respect that,
"But the EU also wants to keep control of its money, law and borders and the UK should respect that."
Mr Barnier said that he wanted to "bring new energy into these negotiations" over the coming weeks ahead of the EU summit in October at which it is hoped to finalise the Withdrawal Agreement and reach a political declaration on a future relationship.
He said that UK proposals on security marked "a real step forward" and welcomed the acknowledgement in Mrs May's White Paper that the European Court of Justice is the only arbiter of EU law.
He said he was "particularly pleased" with progress on foreign policy and external security.
But he said: "In contrast, on our future economic relationship, it comes as no surprise that finding common ground between the EU27 and the UK is more difficult."
Mr Barnier said future market access for financial services would be governed by autonomous decisions on both sides.
"We recognise the need for this autonomy not only at the time of granting equivalence decisions but also at the time of withdrawing such decisions and we agreed to have close regulatory cooperation," he said.
And he said the backstop on the Irish border must be resolved and raised concerns about the UK's position.
He said: "We have no objection in principle to this but we have doubts that it can be done without putting at risk the integrity of our customs union or commercial policy our regulatory policy."
Mr Barnier said they had had an "open and frank and therefore useful discussion" about the issue.
"We must advance and agree on the legally operative backstop to conclude the withdrawal agreement."
