British companies want to participate in the negotiations on a new trade agreement with the European Union. This was announced by the largest employers' organization in the United Kingdom, in response to the recent meeting between EC President Ursula von der Leyen and British Prime Minister Boris Johnson.
Brussels states that it will be impossible to conclude a full trade agreement within the next eleven months. Johnson declared that it is "likely" that a comprehensive trade deal will be reached before the end of the year, although preparations are being made in case this does not succeed.
One of the sticking points concerns fisheries. The British want the trawlers of Danish, German, and Dutch fishermen to leave the new British fishing waters immediately after the UK's departure from the EU (December 31, 2020).
Reportedly, EU negotiator Michel Barnier has already indicated to London that talks with the EU about a broad, general trade agreement will only be possible if, first, the ‘fisheries agreement is dusted off’ in the coming months. The British will also first have to agree that the principle of 'level playing fields' will apply to all economic activities.
Great Britain could ultimately grant EU fishing fleets access to British waters in exchange for favorable terms on the mainland for financial transactions, suggested EU Trade Commissioner Philip Hogan. The Irish commissioner will be one of the key figures in the next round of Brexit talks. His suggestion will likely infuriate Brexiteers, who see fishing rights as an important part of British sovereignty, despite the marginal role of the fishing industry in the British economy, barely one-tenth of one percent of the British national gross product.
According to British Prime Minister Johnson, it is about building a "great new relationship" with the EU, and he has a great deal of confidence in success. Entrepreneurs are urging the British government to work "closely" with the business community. If it were up to CBI, companies should be involved in all phases of the negotiations. The organization has already done some groundwork and has several models of possible trade agreements ready.
The biggest fear of entrepreneurs is that at the end of this year there will still be an abrupt break in the trade relationship with the EU (no deal Brexit). That could occur if by that time no trade deal has been reached and the transition period is not extended.
Great Britain is expected to leave the EU on January 31, but will remain bound by European laws and regulations until the end of the year. Johnson has already indicated that he does not want to extend the transition period.
The European Parliament in Strasbourg has, in a non-binding draft resolution, called on the European Commission and the EU countries not to agree to a Brexit arrangement as long as all the rights of EU citizens in Great Britain are not guaranteed. The EU countries have already guaranteed Britons living and working on the continent that they will retain all their current rights after Brexit. The British government has not yet given such a guarantee to EU citizens.
As a result, EU citizens risk losing their voting rights in the UK if they do not register as immigrants. Europeans also risk losing some social rights regarding housing and healthcare costs. The resolution will be put to a vote on Wednesday in Strasbourg. The European Parliament is – alongside the EU Council of Ministers and the European Commission – one of the three EU institutions that must approve the Brexit agreement.
British anti-EU politician Nigel Farage has dismissed the European Parliament’s concerns and objections as a last attempt to prevent the British departure from the EU. The final vote on this is scheduled for the plenary session on January 29 in Brussels.