EU softens stance on trade deals as Brexit transition deal nears
European Union negotiators could allow the UK to make free trade deals during the Brexit transition period while remaining in the customs union and single markets, according to reports of the blocs plans ahead of a Sunday trip to Brussels for David Davis.
Although the UK will still need to have an authorisation by the union to do so and cannot contradict their policies, they will be able to participate in the World Trade Organisation in Geneva “in its own right”, The Times reported on Thursday, having seen a draft plan.
The draft still needs to be approved by the other 27 states and although the deal is more in tune with British expectations, there are still negative economic consequences that will affect UK business.
The diplomats have added a “good faith” clause in which it states that both sides will respect each others interest through the transition period. In return, the EU will also make a pledge so the UK has the same rights as a member country during that time.
A transition deal may be imminent as Brexit Secretary Davis is set to travel to Brussels on Sunday. The negotiating teams are due to work through the trading rules and regulations on the weekend and Davis will meet EU chief negotiator Michel Barnier on Monday.
Davis told the BBC overnight that he could “live with” a shorter transition period if it helped secure a better deal.
“That is more important to me than a few months either way. So, I'm not bothered too much about the question of whether it is Christmas 2020 or Easter 2021.”