The Key Points of the Draft BREXIT Deal
The UK and the EU have agreed to the final bit of their BREXIT deal, setting out a vision for close economic ties in a draft that hands Prime Minister Theresa May some Key political wins.
EU Council President Donald Tusk said the draft had been agreed in principle, pending leaders’ sign off Sunday. Mrs. May briefed her Cabinet and announced the deal outside of her 10 Downing Street residence.
“The British people want this to be settled. They want a good deal that sets us on course for a brighter future. That deal is within our grasp and I am determined to deliver it,” she said.
The GBP (pound sterling) surged as investors saw the final stage of negotiations falling into place.
Mrs. May’s challenge now is to convince a skeptical Parliament to back it in a vote that will probably take place next month. She’s already hitting on her best argument to win over politicians:
Voters want it done and they care little for the dramatic party politics that has dogged the BREXIT debate since the historic referendum in Y 2016.
The deal offers Mrs. May some points to help her sell it at home.
1st, it gives industry what it wanted as it points the way to easy trade for goods, calling for ‘a free trade area, combining deep regulatory and customs cooperation.’
For Brexiteers, her most vocal opponents, it hints that the UK will be able to pursue its own trade policy and also stop free movement of people.
It also offers a way out of the most toxic part of the deal: the Irish backstop that opponents of all political colors oppose as it risks keeping the UK shackled to the EU’s orbit indefinitely.
And for Brexiteers there is also a line about how technology will come into its own in the future, solving problems that hardliners have long said hi-tech could fix.
Now it depends whether Mrs. May’s opponents want to be convinced or not. The text is not legally binding, unlike the treaty that governs the divorce, which is where the most unpalatable bits of the agreement are lodged.
Mrs. May is due back in Brussels Saturday for a meeting with EU Commission President Jean-Claude Juncker before a Key summit with other leaders Sunday, when the leaders are expected to sign off.
Below are the Key points in the deal, as follows:
- The Parties envisage comprehensive arrangements that will create a free trade area, combining deep regulatory and customs cooperation, underpinned by provisions ensuring a level playing field for open and fair competition.
- It should build and improve on the single customs territory provided for in the Withdrawal Agreement which obviates the need for checks on rules of origin.
- Cross-border financial services will be based on equivalence. Work will start as soon as possible to avoid disruption
- Parties to explore possibility of cooperation between UK and regulatory agencies such as EMA, EASA.
- On the Irish backstop: The Parties recall their determination to replace the backstop solution on Northern Ireland by a subsequent agreement that establishes alternative arrangements for ensuring the absence of a hard border on the island of Ireland on a permanent footing.
- In another boost for Brexiteers, the draft refers to “all available facilitative arrangements and technologies,” to ease customs procedures.