Theresa May promises Chequers will result in ‘substantial way forward’ on Brexit as leaked papers suggest US-UK deal restricted under new proposals
Theresa May has said tomorrow’s Chequers meeting will result in a “substantial way forward” as leaked papers suggest the UK is willing to concede on alignment to such a degree that it may undermine a US deal.
Speaking from Berlin, where she was meeting German Chancellor Angela Merkel, the Prime Minister said the plan – which will form the basis of a white paper to be published next week – would be good for both the UK and the European Union.
“Tomorrow I will be bringing my Cabinet together to discuss and decide a substantial way forward which will enable the pace and intensity of the negotiations to increase,” May said.
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Merkel noted that time was pressing for an agreement, but stressed that the Commission was leading on talks – a pointed reference to the UK government’s efforts to circumvent chief negotiator Michel Barnier.
“Negotiations will now enter a crucial phase,” she said.
But May’s confidence could yet be misplaced. This morning it was reported that David Davis had written to the Prime Minister warning that her third way on customs – called the future customs arrangement, or FCA – would be rejected by Brussels.
Earlier in the week, her chief EU adviser Olly Robbins briefed Cabinet that Brussels would only contemplate an EEA-style report or the basic free trade agreement, which would exclude services.
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This afternoon, Cabinet ministers received key papers ahead of the meeting, which is expected to last the full day – although not overnight.
According to The Spectator, the papers state that “The UK should maintain a common rulebook for all goods including agri-food” – and that the UK would make “an upfront choice to commit by treaty to ongoing harmonisation with EU rules on goods”.
The government has repeatedly ruled out the UK remaining in the Single Market, which Brexiters fear would hinder the UK’s ability to strike free trade deals, even on a partial basis.
However, the paper notes that this deal “would not allow the UK to accommodate a likely ask from the US in a future trade deal’ as the UK would be unable to recognise the US’s ‘array of standards”.
On services, which make up the vast bulk of the UK economy, the paper states that “we would strike a different arrangement for services, where it is our interests to have regulatory flexibility, recognising this will result in reduced market access”.