BRUSSELS – Negotiators got closer to an agreement on the future relationship between the UK and the European Union, officials from both sides said, although they remained far apart on one major stumbling block: EU boats’ access to UK waters.
With just over two weeks to reach and ratify a deal covering economic, trade and security arrangements, European Commission President Ursula von der Leyen told EU lawmakers it remains impossible to to say with certainty whether an agreement will be reached.
Failure to reach an agreement would mean tariffs would be applied to any trade between the UK and the EU for the first time in nearly half a century from January 1. The UK sends 43% of its exports to the block.
But in comments portraying the people involved in the negotiations, Ms. von der Leyen ticked off a range of issues where the two sides have narrowed or resolved differences related to a central demand from the EU: that the UK commit itself standards on issues such as state aid, labor and environmental regulations that ensure fair competition once Britain leaves the bloc.
That includes progress in defining and enforcing UK state aid decisions, and the EU’s ability to take punitive action if the agreement is breached.
Ms Von der Leyen also said the two sides had agreed on a ‘strong mechanism’ to ensure that the UK could not fall under current regulatory standards, citing progress in managing the deal, including the thorny question of how broad can be one party. retaliation if the other breaks the terms.
However, Ms von der Leyen, who has become increasingly involved in the negotiations in recent weeks, warned that the division over the fisheries was still grim.
“We have no doubts about the UK’s sovereignty over its own waters, but we ask for predictability and stability for our fishermen and our fisherwomen,” she said. “And frankly, it sometimes feels like we won’t be able to solve this question.”
Positions of both sides on fisheries have changed little since talks began in the spring.
British Prime Minister Boris Johnson said last week that no British prime minister could accept a deal that would leave the country without “sovereign control over his own fishing waters.”
The political significance of the issue diminishes its economic impact. The UK fishing industry was worth around £ 750 million in 2018, which equates to $ 1.01 billion, with around 6,000 vessels employing around 12,000 people. The EU fishing industry grossed € 4.3 billion in 2019, which equates to $ 5.23 billion, of which € 550 million comes from UK waters. For both economies, the sector is worth about 0.03% of the gross domestic product.
However, control of historic fishing waters is a politically stimulating issue in both the coastal states of Great Britain and the EU coastal states. The pro-Brexit side made fisheries independence a focal point, with one of the main cheerleaders, Nigel Farage, leading a fleet of fishing vessels along the River Thames in the closing days of the 2016 referendum campaign. The northwestern coastal regions of France are a political battlefield for President Emmanuel Macron.
The footage shows long lines of trucks waiting to cross the English Channel before the UK leaves the EU internal market on January 1. Some companies have stockpiled goods because the new trade rules are still in the dark. Photo: Andy Rain / Shutterstock
The UK is committed to a major overhaul of its fisheries relations with the EU, arguing that any deal should recognize the UK’s sovereignty over its waters and the ultimate right to block EU fishermen.
The UK has offered a short transition period to a new set of arrangements that would lead to a significant increase in the quota of UK-controlled vessels caught in UK waters. Currently, non-UK vessels catch more than half of the fish in their waters. London wants the basic cut in fisheries after the transition as outlined in the agreement and provides for annual negotiations that will determine precise shares for the UK and EU fishing states, including France, Denmark, Spain and the Netherlands.
The EU has accepted that a post-Brexit deal would lead to an increase in quotas for British fishermen, but expects only a modest increase after a transition of up to ten years. It wants future quotas to be agreed over multi-year periods to provide security for the sector.
Mr Macron has warned that French fishermen will not pay the price of Brexit, and French officials have threatened to veto an agreement that will make the fleet worse off.
Some officials doubt that the differences in the fishery will ultimately prevent a deal.
Without an agreement, the fishing sectors of both sides would be in great pain. British officials considered sending naval ships last week to keep non-British boats out of British waters if there is no deal. The EU, for its part, would be able to impose high tariffs on UK fish exports, which account for about 75% of the fish caught by British ships.
Write to Laurence Norman at [email protected]
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