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Kamis, 24 Desember 2020

Brexit: How explosive negotiations led to EU-UK trade deal - Daily Mail

How the Brexit deal was done: A last minute mathematics bungle, songs from Les Miserables and negotiating sessions explosive enough ‘to go on Netflix’ got the agreement over the line

Michael Gove was given a Netflix-worthy dressing-down over Irish border row
EU 'went mental' over Downing Street tweet encouraging a Canada-style deal
British negotiators would sing Les Miserables to get through final days of talks
The Brexit announcement was delayed by 20-hours due to a mathematical error

Published: 01:11 GMT, 25 December 2020 | Updated: 02:48 GMT, 25 December 2020

Last minute mathematics bungles, using the Les Miserables soundtrack as a rallying cry and explosive negotiations worthy of being streamed on Netflix all managed to get a Brexit deal over the line.

Four-and-a-half years after Brits voted to leave the EU, Boris Johnson yesterday announced that a trade deal had finally been agreed.

The Prime Minister said it would be 'the basis of a happy and successful and stable partnership with our friends in the EU for years to come,' but negotiations were anything but jovial.

Senior ministers received dressing-downs that were worthy of being viewed on Netflix, sources said, while the EU 'went mental,' over a Downing Street tweet in the midst of negotiations.

And the Prime Ministers own announcement had to be delayed after officials spotted a last-minute mathematical error over fisheries.

Preparations began behind the scenes 12 months ago after Boris Johnson led the Conservatives to an historic election victory to secure a majority in Parliament.

Since then, 2020 has been a rollercoaster of activity during Brexit negotiations:

January

In January Lord David Frost was appointed chief Brexit negotiator, as the PM looked to take on a new negotiating strategy in the wake of Theresa May's failure to get a deal through Parliament.

Before Mr Johnson's Greenwich speech on February 3, the new negotiating team was trying out new methods, with Lord Frost and his deputies organising sessions for officials to defend British political positions under intense pressure.

Boris Johnson outlined his vision for a post-Brexit Britain in Greenwich on February 3 - but weeks before he took to the podium, the Government was preparing a new approach to negotiations with the EU

The sessions would help forge camaraderie amongst the team that lasted even in its darkest days.

Throughout the next 12 months, the team would rely on songs to lift their spirits, with One Day More from Les Miserables said to be their rallying cry when a deal looked less and less likely.

Meanwhile the EU was bullish about winning a deal that favoured its members.

Ireland's Leo Varadkar came out fighting, telling the BBC: 'The European Union is a union of 27 member states. The UK is only one country. And we have a population and a market of 450 million people.

'The UK, it's about 60million. So if these were two teams up against each other playing football, who do you think has the stronger team?'

February

Then came February 3, Boris Johnson outlined his vision for Britain in the wake of Brexit, while all-the-while, officials were readying themselves for the first official meeting in March.

Mr Johnson gave a speech that likened Britain to Superman, before laying out the key differences between the country and the EU.

He ended by saying: 'We are embarked now on a great voyage, a project that no one thought in the international community that this country would have the guts to undertake, but if we are brave and if we truly commit to the logic of our mission - open, outward-looking - generous, welcoming, engaged with the world championing global free trade now when global free trade needs a global champion,

Britain's chief negotiator to the EU Lord David Frost, pictured giving the thumbs up on Christmas Eve, took Brexit talks in a new direction at the start of this year. Giving a speech in February, he said the EU: 'Must find a way of relating to its neighbours as friends and genuinely sovereign equals'

'I believe we can make a huge success of this venture, for Britain, for our European friends, and for the world.'

On February 17, Lord Frost gave a speech that refused to cow to European pressure.

He said: 'I do think the EU needs to understand, I mean genuinely understand, not just say it, that countries geographically in Europe can, if they choose it, be independent countries.

'Independence does not mean a limited degree of freedom in return for accepting some of the norms of the central power.

'It means – independence – just that. I recognise that some in Brussels might be uncomfortable with that – but the EU must, if it is to achieve what it wants in the world, find a way of relating to its neighbours as friends and genuinely sovereign equals.

'So let me conclude. Michel Barnier said in Belfast in other week that “Not one single person has ever convinced me of the added value of Brexit”.

'So, Michel, I hope I will convince you when you read this to see things differently – and maybe even think that a Britain doing things differently might be good for Europe as well as for Britain.

Downing Street press office's tweet in February welcomed the possibility of a Canada-style free trade agreement, using the EU's own slide to promote it. EU negotiators 'went mental,' as a result, one British source said

The following day, Downing Street's press office dealt a hammer blow that would leave Michel Barnier's EU negotiation team reeling.

It tweeted a 2017 slide often used by the EU that highlighted the deal Britain faced.

Instead of the supposed benefits of staying a member, Britain would fall five steps down, holding a similar arragement with the EU as Canada and South Korea currently have.

The tweet read: 'In 2017 the EU showed on their own slide that a Canada type FTA was the only available relationship for the UK. Now they say it’s not on offer after all. Michel Barner, what’s changed?'

A senior British source told The Times: 'They went mental.

'After all the cakeism, they couldn’t believe that we were turning the tables on them. They couldn’t believe Frost was saying, "Canada? Yes please, give it to us, we’ll have thank you very much".'

March

Formal negotiations for a trade agreement began on March 2 - with British negotiators now briefed to back the claim that a bad deal was worse for Britain than no deal at all.

The message got through to Barnier. Britain was prepared to walk away without a deal if the EU wouldn't play ball.

One civil servant told The Times: 'Frost convinced us that we are part of something with national and historical importance. Something to be proud of.'

British negotiators are said to have used the soundtrack to Les Miserables as a rallying cry to boost morale whenever talks stagnated. One Day More is thought to have inspired officials

But as no reader will need reminding, March brought with it a severe rise in coronavirus cases and lockdowns across Europe.

Politicians and civil servants were taken off Brexit and told to deal with responding to the pandemic.

Talks were suspended for two months, but resumed remotely at the end of April.

April

As talks resumed over Zoom, negotiators were said to be more focussed on peering into one another's houses.

Sticking points remained very much the same, with the EU warning Britain could not enjoy the benefits of a single market and customs without some giving up some of its sovereignty - a level playing field debate that ultimately took talks to the wire.

May

Discussions between Britain and EU's chief negotiators turned public, as Lord Frost took an unusual move by penning a letter to Mr Barnier and publishing draft UK legal texts.

Highlighting the stage of negotiations, and Britain's position, Lord Frost wrote: 'Overall, at this moment in negotiations, what is on offer is not a fair free trade relationship between close economic partners, but a relatively low-quality trade agreement coming with unprecedented EU oversight of our laws and institutions.'

After Michel Barnier and David Frost exchanged public letters in June, Boris Johnson urged Ursula von der Leyen (pictured with Mr Barnier) and other EU leaders to put a 'tiger in the tank' and speed up talks

Mr Barnier replied the following day, signalling that the EU's negotiating position had changed and that a post-Brexit Britain 'will remain entirely free to set its own higher standards,' in areas such as state aid aid, competition, social/employment standards, taxation and climate change.

June

Boris Johnson urged EU leaders to put a 'tiger in the tank' to ensure they succeed following a meeting with President of the European Council Charles Michel, the President of the European Commission, Ursula von der Leyen, and the President of the European Parliament, David Sassoli on June 15.

In a joint EU-UK statement, it was agreed that 'new momentum was required,' to achieve a deal by December 31 and support plans to intensify talks from July.

The EU and UK agreed 'new momentum was required' in July, as the likes of Emmanuel Macron and Angela Merkel waited to see the results of negotiations

September

A quiet summer erupted after Britain unveiled the UK Internal Market Bill, which would have allowed Britain to break international law with respect to the Irish border in the event of no deal. It was later dropped - but not before dramatic scenes unfolded.

An awkward Michael Gove is said to have suffered a torrent of language from Maros Sefcovic, vice president of the EU Commission.

A row over the Irish border in September saw the Chancellor of the Duchy of Lancaster, Michael Gove, pictured on Monday, receive a dressing-down from the vice president of the EU Commission that was said to be worthy of appearing on Netflix

One official has since said the scene was worthy of being streamed on Netflix.

October

An EU summit in mid-October was set to be the deadline for trade talks to end - of course, they didn't

Lord Frost sent word to the PM that talks should step up as he believed they were progressing well.

But confidence was dealt a blow after an EU summit text made calls for the UK to make 'the necessary moves to make an agreement possible'.

French president Emmanuel Macron weighed in, warning 'under no condition can our fishermen be sacrificed during Brexit.

Michel Barnier helped get things back on track with a speech to the EU, which reminded them that the deal had 'respect for British sovereignty,' warning: 'What is at stake is the smooth organisation of our future relations after the divorce, which is now an established fact.'

December

By the start of this month, talks were thought to be closing on a breakthrough, only for the EU to arrive with new demands over fishing rights and a level playing field.

Talks were grinding to a halt with just weeks left to find a deal. They were suspended while the PM and Ms von der Leyen spoke over the phone to arrange an agreement.

On December 9 Mr Johnson travelled to Brussels to meet the commissioner.

Boris Johnson was ready to announce a Brexit deal on Wednesday night, but was forced to wait until Christmas Eve after officials spotted a mathematical error referring to Britain's fishing rights. Holding up the deal tonight, Mr Johnson said it will be the 'basis of a happy and successful and stable partnership with our friends in the EU for years to come'

The talks proved pivotal and two weeks later, a deal was ready to go.

On Wednesday, December 23, union flags and TV cameras were in place in Downing Street, ready for Boris Johnson to announce the landmark stop on the 'great voyage' he had discussed in February.

But his announcement was delayed.

Officials tasked with turning the agreement into a legal text discovered three per cent of Britain's fishing quota had gone missing, according to The Telegraph.

Then, on Christmas Eve, Boris Johnson was able to finally announce the deal.

After a tense final few weeks of negotiations, Britain and EU announced a trade deal on Christmas Eve

Speaking last night, he said: 'Glad tidings of great joy, because this is a deal. A deal to give certainty to business, travellers and all investors in our country from the first of January. A deal with our friends and partners in the EU.

'You remember the oven ready deal by which we came out on January 31? That oven ready deal was just the starter. This is the feast.'

He joked it was 'full of fish,' before adding: 'I believe it will be the basis of a happy and successful and stable partnership with our friends in the EU for years to come.'

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2020-12-25 01:11:00Z
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What Brexit deal means for me: Six bosses tell all - BBC News

The UK and European Union (EU) have finally reached a post-Brexit trade deal, ending months of disagreements over fishing rights and future business rules.

For companies already reeling from the impact of coronavirus, who feared disruption at the borders and the imposition of tariffs, or taxes on imports it's a major relief.

But from 1 January there will still be big changes for businesses. We talk to the bosses of six different firms about how they will be affected.

'It's worth tens of thousands of pounds to me'

Bryan Griffiths, a sheep farmer based in Devon, says a deal is "the best Christmas present I could have had. I'm delighted and relieved".

Mr Griffiths, who is the chairman of the National Sheep Association, has 900 breeding sheep that are in lamb. These lambs are due to be sold in the summer and autumn of 2021, so he is tied into "a long production cycle".

About 40% of British lamb is sent to the EU. If there had been no deal, reverting to World Trade Organization (WTO) tariffs would have driven down the price of lamb leaving sheep farmers with potentially large losses.

"It's worth tens of thousands of pounds to me. My livelihood, my income, was at stake here," he says.

"I now feel so much more confident that I can produce my lamb knowing I have a good tariff-free market for them."

'We need six months to prepare'

Jon Swallow is the co-founder of Jordon Freight in Felixstowe, Suffolk, a European transport specialist and freight forwarder.

He is concerned about the amount of additional paperwork that will be needed at the border, and how this will impact his customers and the 10,000 lorries that go backwards and forwards between France and the UK a day.

"I'm scratching my head - if they said they were giving people time to look at their businesses and how things are going to change, such as the time of deliveries, which will change massively, why wouldn't you add an implementation period on?," he asks.

"A high proportion of businesses have been waiting for this deal to see how to prepare. Now they can, they've got literally seven days and no one's in the offices. There needs to be an implementation period of at least six months."

He says a test was done in France a few weeks ago where they started checking drivers' passport details - which takes 30 seconds a person. The test "instantly" caused a tailback in Dover of about five miles.

"You're going to see an awful lot of drivers not returning to the UK because of this," he stresses.

"There are going to be people wanting their goods moved into the EU, but there won't be enough drivers. There are not enough drivers to move the goods right now.

"People have been paying astronomical costs to get their goods moved. It's going to be quite a hard sell to get them to come here."

'Postponed VAT payments is massive for us'

Stephen Britt is the managing director of Anchor Storage in Suffolk, a warehousing firm that stores imported goods and then sends them out to customers.

He says he feels "blessed relief" that the Brexit trade deal has been agreed, and that there will be zero tariffs and zero quotas with the EU.

In particular, Mr Britt is excited about the fact that from 1 January, there will now be a system in place for postponed VAT payments.

"For the longest time, you've had to pay out the VAT on import when the goods come across the border, but now you'll be able to account for this in your quarterly accounting instead," he says.

"Had we not left the EU, it is unlikely that the HMRC would have allowed it... it's a cash flow issue for them.

'This takes the brakes off doing business globally'

Julie Price is the managing director of Julie Price Insurance in Hinckley, south-west Leicestershire.

While the Brexit trade deal does not affect her firm directly, it has a key impact on the exporters and importer customers she insures and she says this will make it easier for them to trade.

With the trade deal done, Ms Price now hopes the government's focus will be on improving the economy.

"We need flexibility and we've always been good at doing business with people globally. This takes the brakes off," she says.

"We don't need 27 countries telling us what to do, let us go. This gives us the freedom."

'There is still hard work ahead'

Ed Salt, the managing director of Delamere Dairy in Cheshire, is relieved a deal has been done, but remains cautious about what lies ahead after 1 January.

"It is a backward step in respect to trade with regards to red tape - there's a huge amount of import paperwork that will be needed that previously wasn't," he says.

"Yes there are no tariffs, yes we have a free-trade agreement, but those processes are more arduous."

He points out that the deal will still need to be ratified by the 27 EU member states, and it is possible that the deal could be held up if the countries don't all agree, which happened during the EU-Canada deal, when part of the Belgian government opposed it.

"I'm delighted, but there is still hard work ahead. We have a trade deal but we're going to be trading in a different way going forward and we have to be prepared."

'How will this affect VAT on digital sales?'

Jo Smedley, the founder of Red Herring Games in Grimsby, creates and sells games such as murder mysteries to private and corporate clients.

Her firm does a lot of trade outside Europe, so she says the changes are unlikely to have an impact on her sales.

However, she believes if the trade deal means the scrapping of the current rules governing VAT on sales of digital services in the EU, that could provide a boost to smaller firms like hers.

"If that was being ditched, a lot of small businesses that were put out of work would be able to come back to the market place again."

As for her supply chain, at the moment it seems to be intact, as she mostly buys from UK sellers, but she says that if they are sourcing goods or materials from the EU, border delays after 1 January could eventually have a "hidden" impact on her business.

The basics

A Brexit deal has been agreed, days before a deadline. It means that the UK and the EU can continue to trade without extra taxes being put on goods - but we don't know all the details yet.
What took so long? The UK voted to leave the EU in 2016 and actually left on 31 January 2020, but leaders had until the end of 2020 to work out a trade deal.
There are big changes ahead. Although it's a trade deal that has been agreed, there will also be changes to how people travel between the EU and UK, and to the way they live and work.

What happens next with Brexit?

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2020-12-25 00:03:00Z
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Brexit trade deal finally agreed - BBC News - BBC News

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Brexit trade deal finally agreed - BBC News BBC News
BREAKING: "We have taken back control of our laws and our destiny" Sky News
UK and EU agree post-Brexit trade deal - BBC News BBC News
Boris Johnson has 'got Brexit done'. With a deal that will please no one The Guardian
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2020-12-24 22:55:18Z
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What's in the Brexit trade deal? - Sky News

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What's in the Brexit trade deal? Sky News
UK and EU agree post-Brexit trade deal - BBC News BBC News
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2020-12-24 19:40:18Z
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Keir Starmer says Labour WILL back Boris's deal but says 'consequences are yours!' - Daily Express

Keir Starmer said he will whip the Labour Party to back the deal despite the belief a better Brexit trade deal could be struck with the European Union. Sir Keir insisted the party "has to make it work" because of the consequences a no deal scenario would have on the UK economy. Speaking after the agreement with the EU was confirmed, the Labour leader said: "A better deal could have been negotiated but I accept that that option is now gone.

"The chance for renegotiation is over, there are just two paths now left for our country, to move forward with a deal or without one.

"Labour is against no deal, firmly and absolutely and the British people would never forgive us if we enabled a no deal outcome. There are some that argue Labour should be neutral on this issue, to abstain - I do not agree.

"Leadership is about taking the tough decisions in the national interest, it's about being a serious and responsible Opposition. A Government in waiting.

"This is the deal that Labour will inherit in 2024, it's something we will build on compared to the chaos of no deal."

JUST IN: Brexit deal DONE: UK secures its freedom from EU in historic moment for Britain

Sir Keir continued: "The public would expect a Labour Government to make it work, and the EU would expect us to make it work and to use it to protect our shared interests.

At a moment of such national significance, it's just not credible for Labour to be on the sidelines. And that's why I can say today that when this deal comes before Parliament, Labour will accept it and vote for it.

"But let me be absolutely clear and say directly to the Government - up against no deal, we accept this deal but the consequences of it are yours and yours alone.

"We will hold you to account for it every second you're in power for the promises you made, for the promises you break. No longer can you blame somebody else. Responsibility for this deal lays squarely at the door of Number 10."

The Labour Party leader claimed the Brexit trade deal Boris Johnson agreed to on Thursday is "thin" and fails to provide adequate protection to "manufacturing, our financial services, creative industries or workplace rights."

But Prime Minister Boris Johnson announced in the press conference confirming an agreement had been reached ensured the UK would " "take back control" "take back control" as promised in the 2016 EU referendum.

Mr Johnson said: "We have taken back control of our laws and our destiny. We have taken back control of every jot and tittle of our regulation in a way that is complete and unfettered.

"From January 1 we are outside the customs union and outside the single market.

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"British laws will be made solely by the British Parliament interpreted by British judges sitting in UK courts and the jurisdiction of the European Court of Justice will come to an end."

European Commission President Ursula von der Leyen said: "We have finally found an agreement.

"It was a long and winding road, but we have got a good deal to show for it.

"It is fair, it is a balanced deal, and it is the right and responsible thing to do for both sides."

Mrs Von der Leyen said the deal meant "EU rules and standards will be respected" with "effective tools to react" if the UK side tries to undercut Brussels to seek a competitive advantage.

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2020-12-24 17:18:00Z
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Brexit: Boris Johnson hails free trade deal with EU - BBC News

The EU and UK have reached a post-Brexit trade deal, ending months of disagreements over fishing rights and future business rules.

At a Downing Street press conference, Boris Johnson said: "We have taken back control of our laws and our destiny."

The text of the agreement has yet to be released, but the PM claimed it was a "good deal for the whole of Europe".

The UK is set to exit EU trading rules next Thursday - a year after officially leaving the 27 nation bloc.

It will mean big changes for business, with the UK and EU forming two separate markets, and the end of free movement.

But the trade deal will come as a major relief to many British businesses, already reeling from the impact of coronavirus, who feared disruption at the borders and the imposition of tariffs, or taxes on imports.

As the deal was announced, Mr Johnson - who had repeatedly said the UK would "prosper mightily" without a deal - tweeted a picture of himself smiling with both thumbs lifted in the air.

At his press conference, he said the £668bn a year agreement would "protect jobs across this country" and "enable UK goods to be sold without tariffs, without quotas in the EU market".

He acknowledged he had been forced to give ground on his demands on fishing.

"The EU began with I think wanting a transition period of 14 years, we wanted three years, we've ended up at five years," he said.

And he said the UK had not got all it wanted on financial services, a vital part of the UK economy, but he insisted the deal was "nonetheless going to enable our dynamic City of London to get on and prosper as never before".

The UK will no longer participate in the Erasmus student exchange scheme, which Mr Johnson said was because it is "extremely expensive" - but a British option called the Turing Scheme will provide an alternative, he added.

In a press conference in Brussels, European Commission President, Ursula von der Leyen said: "This was a long and winding road but we have got a good deal to show for it.

"It is fair, it is a balanced deal, and it is the right and responsible thing to do for both sides."

She added that now was "time to turn the page and look to the future" and that the UK "remains a trusted partner".

'Against Scotland's will'

The UK Parliament will be recalled on 30 December to vote on the deal - it will also need to be ratified by the European Parliament.

The opposition Labour Party - which is expected to back the deal - said it would be setting out its formal response "in due course".

The UK's chief trade negotiator Lord Frost said the full text of the free trade agreement would be published soon.

Wales First Minister Mark Drakeford said a deal was better than no deal but criticised the timing just a week before the UK exits the EU single market and customs union.

Scotland's First Minister Nicola Sturgeon said: "Brexit is happening against Scotland's will - and there is no deal that will ever make up for what Brexit takes away from us.

"It's time to chart our own future as an independent, European nation."

Taoiseach (Irish prime minister) Micheál Martin said he would study the text of the deal but added: "From what we have heard today, I believe that it represents a good compromise and a balanced outcome."

Brexit Party leader Nigel Farage - who played a leading role in the campaign to get the UK out of the EU in the 2016 referendum - tweeted that the deal was "not perfect" but it was a "big moment" and there was now "no going back".

But trade union leader Frances O'Grady, head of the TUC, said the deal was better than nothing "but not by much", warning that it would put "hard-won workers' rights on the line" and would not protect jobs.

The government's economic watchdog, the Office for Budget Responsibility, had warned that leaving without a deal would have shrunk the national income by 2% next year and led to major job losses.

Down to the wire

There were also concerns it would lead to higher prices in the shops for many imported goods.

Negotiations in Brussels went down to the wire over what EU fishing boats are allowed to catch in UK waters. Fishing makes up just 0.12% of the UK's economy.

There are still big question marks about what the deal will mean for the rest of British business.

Firms that trade with the 27 member states have carried on as normal for the past year during the so-called transition period that kicked in when Britain left the EU.

They will still face extra paperwork when the country leaves the EU single market and customs union next week.

But the threat of tariffs - import taxes - between the UK and its biggest trading partner will be removed.

How will Brexit affect you? Do you have any questions about the trade deal? Get in touch by emailing haveyoursay@bbc.co.uk.

Please include a contact number if you are willing to speak to a BBC journalist. You can also get in touch in the following ways:

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2020-12-24 17:08:00Z
52781259169935

Brexit: Boris Johnson hails free trade deal with EU - BBC News

The EU and UK have reached a post-Brexit trade deal, ending months of disagreements over fishing rights and future business rules.

At a Downing Street press conference, Boris Johnson said: "We have taken back control of our laws and our destiny."

The prime minister added that although arguments had been "fierce" it was a "good deal for the whole of Europe", driving jobs and prosperity.

EU chief Ursula von der Leyen said it was a "fair and balanced" deal.

In a press conference in Brussels, the European Commission president said: "This was a long and winding road but we have got a good deal to show for it.

"It is fair, it is a balanced deal, and it is the right and responsible thing to do for both sides."

She added that now was "time to turn the page and look to the future" and that the UK "remains a trusted partner".

There will be a five-and-a-half year transition period for the fishing industry, she indicated.

And co-operation will continue on issues including climate change, energy, security and transport.

In a statement, Downing Street said: "We have taken back control of our money, borders, laws, trade and our fishing waters."

Echoing Mr Johnson's general election slogan, it added "we have got Brexit done".

Mr Johnson tweeted a picture of himself smiling with both thumbs lifted in the air.

At his press conference, he said: "We have completed the biggest deal yet worth £668bn a year.

"A comprehensive Canada-style deal between the UK and the EU. A deal that will protect jobs across this country, that will enable UK goods to be sold without tariffs, without quotas in the EU market.

"A deal which will allow our companies to do even more business with our European friends."

Relief to businesses

He said he hoped the UK Parliament would be recalled on 30 December to vote on deal - it will also need to be ratified by the European Parliament.

The opposition Labour Party - which is widely expected to back the deal - said it would be setting out its formal response "in due course".

The full text of the free trade agreement is expected to be published in the coming days.

Wales First Minister Mark Drakeford said a deal was better than no deal but criticised the timing just a week before the UK exits the EU single market and customs union.

Scotland's First Minister Nicola Sturgeon said: "Brexit is happening against Scotland's will - and there is no deal that will ever make up for what Brexit takes away from us.

"It's time to chart our own future as an independent, European nation."

The deal will come as a major relief to many British businesses, already reeling from the impact of coronavirus, who feared disruption at the borders when the UK leaves EU trading rules next Thursday.