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08 January 2020

City AM: EU chief von der Leyen: Time too short for comprehensive post-Brexit deal by 2021


The new head of the European Commission has said there will not be enough time for the UK and European Union to reach a comprehensive trade agreement by the end of 2020, saying the two sides “must prioritise”.

However, in a broadly conciliatory speech at the London School of Economics this morning, she said the UK and EU’s post-Brexit partnership could be “unprecedented in scope”.

Von der Leyen’s address to her old university came ahead of a key meeting with Prime Minister Boris Johnson in Downing Street later today in their first head-to-head since she took the reins from Jean-Claude Juncker. [...]

Yet von der Leyen said: “Without an extension of the transition period beyond 2020, you cannot expect to agree on every single aspect of our new partnership.”

She added: “It’s not an all or nothing thing, it’s a question of priorities.” Von der Leyen and Johnson’s respective positions leave open the possibility of a bare-bones trade deal being reached by the end of 2020, which could be added to later.

Tough negotiations

Addressing the negotiations, von der Leyen warned that the more the UK diverges from the EU’s standards, the less access it will get to “the world’s largest single market”.

She said she wants a trade deal that features “zero quotas, zero tariffs, and zero [product] dumping”, but said this means the UK would have to promise to stick to the current “level playing field” agreements.

Level playing field rules ensure the UK is aligned with the EU on things like labour and environmental standards. Many in the Conservative party argue that the UK should diverge from these rules, which they see as overly onerous.

Yet von der Leyen said: “Whatever diverges from level playing field decreases uncomplicated access to the single market.” [...]

Full article on City AM

Full speech for the LSE

 



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