UK wins Brexit transition deal in return for Irish vow

BRUSSELS (Reuters) – Britain and the European Union agreed on Monday to a transition interval to keep away from a “cliff edge” Brexit subsequent 12 months — although solely after London accepted a possible answer for Northern Ireland’s land border which will face stiff opposition at home.

The pound surged on affirmation that Britain would stay successfully a non-voting EU member for 21 months till the top of 2020. Some business leaders, nonetheless, echoed a warning from EU negotiator Michel Barnier that the deal is legally binding provided that London agrees the entire withdrawal treaty by subsequent March.

That means fixing excellent points, notably the right way to keep away from a “hard border” that would disrupt peace in Northern Ireland. Britain says an EU-UK free commerce deal to be sealed by 2021 can do this. But Dublin insists the Brexit treaty should lock in a “backstop” association in case that future pact doesn’t work.

Both sides are dedicated to preserving a free stream of individuals and items over the intra-Irish border with out returning to checkpoints, as throughout the three many years of violence in Northern Ireland. However, discovering a sensible answer for any customs checks wanted post-Brexit has proved elusive to date.

The dispute with Ireland had threatened to derail May’s hopes of a proper political endorsement of the transition deal by EU leaders once they meet in Brussels on Friday. A weekend of intensive talks, nonetheless, has damaged the impasse — for now.

Prime Minister Theresa May, who depends on pro-British Northern Ireland members of parliament to cross her Brexit laws, had rejected a fallback proposed by Brussels three weeks in the past. She mentioned an EU provide to maintain Northern Ireland below EU commerce guidelines would isolate the province from the mainland.

However, her Brexit Secretary David Davis, in Brussels, has now signed as much as following related rules as negotiators resume work to search out an “operational” compromise. Dublin mentioned it was glad to simply accept because it certain London in to not “backsliding” on pledges May had made on the problem in December..

“We agree on the need to include legal text detailing the ‘backstop’ solution for the border,” Davis informed 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 query will stay as as to if negotiations on the long run commerce partnership between Britain and the EU, that are anticipated to begin solely subsequent month after EU leaders endorse Barnier’s negotiating pointers on Friday, can produce outcomes — and rapidly sufficient to keep away from having language within the withdrawal treaty that Britain, and May’s Belfast allies, can’t settle for.

Her Democratic Unionist Party allies mentioned the “announcement” didn’t concern them because it left the border concern unresolved.

Longer time period, the transition deal could purchase folks time however business nonetheless faces a “cliff edge” of uncertainty come 2021.

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


Davis agreed with Barnier that Monday’s settlement was “decisive” and elevated the chances on discovering an orderly deal to keep away from Europe’s second largest financial system merely crashing out of the bloc in simply over a 12 months. He hailed the understanding that the offers on the transition and different points, together with rights for expatriate residents, would provide companies and people.

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 brand new, 129-page draft withdrawal treaty that was awash with inexperienced highlighter denoting last settlement on massive areas of the authorized textual content, together with transition. Diplomats put the extent of “green” settlement at over 80 p.c.

The pound rose as a lot as one p.c towards the greenback to $1.4088 GBP=D3, its strongest since Feb. 16.


Davis, who not like May campaigned for Brexit, mentioned he was happy with EU settlement to let Britain negotiate and signal commerce offers with different nations whereas remaining lined by EU frequent commerce coverage throughout the transition. Those offers would then take impact as soon as Britain was free to take action in 2021.

He additionally welcomed wording that provides Britain some say in EU coverage throughout the transition, notably on fishing quotas, and a capability to refuse to implement issues it didn’t agree with — a few of his Conservative social gathering allies have complained that the transition deal would go away Britain a “vassal state” of the EU.

The Leave Means Leave marketing campaign accused him of “caving in” on the Irish border. Brexit firebrand Nigel Farage mentioned “Theresa the Appeaser” had “let people down again” by agreeing to EU calls for to maintain free immigration throughout the transition.

More troublingly for May’s prospects of steering the treaty via parliament, her personal social gathering’s chief in Scotland, fierce Brexit critic Ruth Davidson, mentioned the transition was a foul deal — for letting the EU retain energy over British fishing grounds.

The EU secured settlement that Britain would provide residence rights to EU residents who arrive after Brexit however earlier than 2021. However, Britain additionally notched some positive aspects it had pushed for.

The 27 different EU member states have remained carefully aligned, although they have differing pursuits which diplomats say are beginning to emerge in discussions about future commerce. All have backed Irish calls for on the border, though a few of Britain’s nearest neighbours, with most commerce to lose from Brexit, additionally pushed for a fast transition deal to assist their very own companies.

But many EU diplomats mentioned they felt London had largely agreed to their phrases on most points due to May’s political crucial to get a transition deal which will calm the fears of companies considering moving investments out of Britain.

One EU diplomat mentioned: “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; enhancing by David Stamp, William Maclean

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