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BREXIT
BRIEF
Brexit Brief Issue 91
8 July 2020
Introduction
The Brief seeks to provide up-to-date information on the progress and content of the UK-EU
negotiations, and bring together relevant statements and policy positions from key players in
Ireland, the UK and the EU.
The Brief is part of a wider communications programme covering the work of the IIEA’s UK
Project Group – including commentaries, speeches, texts and event reports – which are
highlighted on the Institute’s website. (www.iiea.com)
Section One: State of Play of social benefits for EU citizens in the UK and
British citizens in the EU.
Negotiations Round 5
Significantly, the agenda made provision for
On Monday 29 June 2020, in Brussels, the EU two two-hour sessions devoted to direct,
and UK negotiating teams began the first of face-to-face meetings between the Chief
six scheduled rounds of week-long talks, five Negotiators, Michel Barnier and David Frost,
between now and the end of July, with the and a four-hour time slot for what was
final round scheduled for 17 August 2020. described as ‘cross-work-stream discussion
and other follow-up’.
On the agenda for the first week were:
governance and horizontal arrangements; In the event, the talks ended a day early,
fisheries; level playing field for open and without the final get-together of the Chief
fair competition; trade in goods; trade in Negotiators and without the cross-work-stream
services and investment; criminal law and discussion. An EU official commented that it
judicial cooperation; energy and transport was not a “huge issue” that Mr Barnier and Mr
networks; participation in EU programmes Frost had not met and that the other session
such as science and research; social security; had been included in the agenda to permit
thematic cooperation; and, continued mobility time for discussion of “extra questions” which
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had not arisen. Both sides issued statements David Frost, in a brief statement, said that the
on the afternoon of Thursday 2 July. two sides had completed their discussion of
the full range of issues in just over three days.
Michel Barnier said that: “Our goal was to “Our talks were face-to-face for the first time
get negotiations successfully and quickly on since March and this has given extra depth and
a trajectory to reach an agreement. However, flexibility to our discussions. The negotiations
after four days of discussions, serious have been comprehensive and useful. But
divergences remain. The EU side had listened they have also underlined the significant
carefully to UK Prime Minister Boris Johnson’s differences that still remain between us on
statements in recent weeks, in particular, his a number of important issues. We remain
request to reach a political agreement quickly.” committed to working hard to find an early
He made it clear that the EU recognised the understanding on the principles underlying an
UK’s red lines: “no role for the European Court agreement out of the intensified talks process
of Justice in the UK; no obligation for the UK during July.”
to continue to be bound by EU law; and an
agreement on fisheries that shows Brexit Michel Barnier’s references to Boris Johson’s
makes a real difference.” red lines reflect a readiness to find solutions
to issues such as how the UK will run its State
Mr Barnier said that his team engaged aid regime after the transition period. The EU
constructively, as had been the case in has asked the UK side to set out its plans in
the earlier rounds in June. However, the this critical area to reassure Brussels that it
EU’s position, based on the agreed Political does not intend to undercut EU interests. Mr
Declaration, remained as follows: “There Barnier has also indicated a willingness to look
will be no economic partnership without: at alternative models for the level playing field
robust guarantees for a level playing field – concept and to move from a hard-line position
including on State aid – to ensure open and on arrangements for fishing. On the European
fair competition among our businesses; a Court of Justice (ECJ), the UK must show that it
balanced, sustainable and long-term solution understands the necessity of “an overarching
for our European fishermen and women; institutional framework and effective dispute
an overarching institutional framework and settlement mechanisms.” Furthermore, the
effective dispute settlement mechanisms.” UK needs to show an understanding of the EU
The EU continued to insist on parallel progress red lines.
in all areas.
Responding to Michel Barnier’s remark about
Mr Barnier concluded: “The EU expects, in the need to respect the EU’s positions, Prime
turn, its positions to be better understood and Minister Johnson told a radio audience: “I’m
respected in order to reach an agreement. not remotely disrespectful of Michel or the EU
We need an equivalent engagement by the system, which I know well and understand.”
United Kingdom. We continue to believe that He added that he had held “very good
an agreement is possible and in everyone’s conversations with friends and colleagues
interest. In the meantime, and as agreed, around the EU” and that he was “a bit more
we will continue our discussions in London optimistic” than Barnier about reaching a deal
next week.” in the coming months.
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Talks will continue next week in London as and the UK remains a vital focus in the
agreed in the revised terms of reference coming months. Preparing for the end of
published on 12 June. transition is a national priority and I will
be working closely with the Taoiseach,
An Irish Times article, by Paul Gillespie, has Minister Coveney, other colleagues
argued that Ireland is being weaponised by across government and my European
the UK in the negotiations insofar as the threat counterparts to plan and be ready for this
of a no-deal Brexit puts particular pressure on next phase of the Brexit process.
Ireland, since recourse to WTO rules would
lead to high (more than 50%) UK tariffs on The British Prime Minister, Boris Johnson, spoke
Irish beef exports which currently amount to to the Taoiseach on 30 July to congratulate
as much as 40% of output. Another malign him on his appointment. The Prime Minister
scenario, involving non-implementation of “underlined the closeness of the relationship
the Northern Ireland Protocol, could see the between the UK and Ireland” and the two
imposition of a hard border on the island to leaders resolved to work closely to further
defend the EU Single Market. strengthen links between the countries.
On the UK’s departure from the EU, Prime
Coalition Government in Office Minister Johnson “stressed his determination
to reach an agreement as soon as possible,
The new Irish Government, led by Taoiseach
but emphasised that the UK’s fundamental
Micheál Martin TD, entered into office on 27
principles will not change, and explained that
June 2020. Simon Coveney TD, although no
the UK remains committed to implementing
longer Tánaiste, retains his position as Minister
the Northern Ireland protocol.”
for Foreign Affairs and also becomes Minister
for Defence. The Fianna Fáil TD for Meath David Frost Appointment
East, Thomas Byrne, takes over the position
of Minister of State for European Affairs from On 28 June 2020, Prime Minister Boris Johnson
his constituency colleague, Fine Gael’s Helen announced the appointment of David Frost
McEntee TD, who becomes Minister for Justice. as National Security Adviser. David Frost is
Regarding his new role, Mr Byrne said: currently the Prime Minister’s Europe Adviser
and the UK’s Chief Negotiator in the EU-UK
I am delighted to be taking on the role talks. He will succeed Sir Mark Sedwill, who
as the Minister of State for European has served as the National Security Adviser
Affairs. I look forward to working with since April 2017. The Prime Minister, with the
my EU colleagues on a number of key approval of HM The Queen, has nominated
issues for Ireland – most immediately David Frost for a life peerage.
the negotiations for the new EU Budget
(Multiannual Financial Framework) David Frost commented: “I am delighted and
where I will emphasise the importance of honoured to have been appointed the next
maintaining and safeguarding the CAP. National Security Adviser. I look forward to
helping deliver the Prime Minister’s vision for
Brexit and the outcome of the current a global Britain, with real influence around the
negotiation process between the EU world. I will of course remain Chief Negotiator
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for the EU talks and these will remain my top Northern Ireland businesses have been calling
single priority until those negotiations have for comprehensive and timely information
concluded, one way or another.” from government on all aspects of the special
arrangements for Northern Ireland agreed
The Guardian commented that: “The timing in the context of the Withdrawal Agreement.
of Frost’s appointment could not have been Clarity about the final form of the system
more pointed. Giving the post to someone outlined in the HMRC documents and of
who is leading arguably the most important its implementation are seen as critical for
international talks since the Iraq war in 2003 planning and management by firms.
sends a strong message to Brussels that the
UK is prepared to walk away if a deal cannot Draft deal on UK Land Bridge
be struck in summer talks. Frost is due to take
up his new role in September and this cuts Irish and EU officials have reached a draft
perilously short the time in which to seal the agreement on the movement of Irish food
comprehensive and ambitious deal Johnson products and live animals to continental EU
claims he wants before the end of the Brexit countries via the UK Land Bridge. While it
transition period.” has been accepted that Irish goods must
be exempt from the checks that will apply
Goods moving between Northern to British goods after Brexit becomes fully
Ireland and Great Britain effective it has been clear that implementation
will require a system that can distinguish Irish
Details have emerged of a system for goods from British goods as they arrive at
checks on goods moving across the Irish Rotterdam, Cherbourg or Zeebrugge.
Sea between Northern Ireland and Great
Britain from next January – a system which The agreement provides that Irish food
Prime Minister Boris Johnson had insisted exports will access “green lanes” when they
would never apply to trade between the two come off the ferries from British ports. There
parts of the United Kingdom. The system will be a pre-notification and certification
is required because of the provisions of the regime which will recognise that, as an EU
Withdrawal Agreement designed to avoid a Member State, Ireland is compliant with all
border on the island of Ireland. EU food safety legislation. The deal requires
technical changes in EU rules on surveillance
Internal UK Revenue & Customs documents of food products entering the Single Market
provide for a system whereby firms in Great and must be approved by the Member States.
Britain will be obliged to complete a range
of customs, security and transit forms on This development is separate to the EU-
all goods moving from the rest of the UK to UK negotiations and relates only to the
Northern Ireland. These procedures will be procedures applicable to goods arriving in
carried out electronically. Goods going from continental ports. It has been pointed out that
Northern Ireland to Great Britain, meanwhile, questions remain over requirements on the
will continue on the present basis, with part of the UK authorities such as filing exit
Northern Ireland firms retaining unfettered declarations or other documentation. The EU
access to the rest of the UK market. is seeking special arrangements for Irish trade
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to avoid long delays at UK ports but there has These choices have consequences. The
been no progress to date. Tony Connelly, in UK cannot keep the benefits of the Single
the Irish Times, notes: “The UK may be in Market without the obligations.
no mood to offer Irish trucks Ryanair-style
priority boarding at Dover just because they In the EU’s view, our future cooperation
are moving EU produce from one part of the should be voluntary and based on trust.
Single Market to another.” We would like to set up a voluntary
framework for dialogue among regulators
Section Two: The Evolving and supervisors that would allow for
Debate intensive exchanges on regulatory and
prudential issues. We already have well-
Barnier Speech at Eurofi General
functioning dialogues of this kind with
Assembly
other major financial services jurisdictions.
On 30 June 2020, Michel Barnier spoke to
German Presidency of Council
the General Assembly of Eurofi, a European
platform for exchanges of views between Germany took over the rotating Presidency
the public and private sectors on financial of the Council of the EU on 1 July 2020.
regulation and trends affecting the financial Chancellor Merkel addressed the Bundestag
industry. In his remarks, Mr Barnier addressed on the first day and made specific reference
the future of financial services trade between to the EU-UK negotiations, arguing that the
the UK and EU: EU must prepare for the possibility that the
talks will not secure an agreement: “To put it
As part of our negotiations, we are
mildly, progress in the negotiations has been
proposing to include, in our future
very limited. I will continue to press for a good
agreement, a chapter on financial
solution. But we in the EU and also in Germany
services, in line with what we have in
must and should prepare for the event that an
other Free Trade Agreements. Our
agreement is not reached after all.”
proposals would give UK operators
legal certainty that they would not The Chancellor gave a wide-ranging interview
face discrimination when establishing to The Guardian and a number of other
themselves in the EU. And the same for European newspapers. On Brexit, she was
EU operators in the UK. The UK, however, asked whether a no-deal outcome in the UK
is looking to go much further. I will be negotiations would be a personal defeat for
blunt: its proposals are unacceptable. her. She replied:
Let me be clear: The UK chose to no longer No. It would, of course, be in Britain’s
be a Member State. It chose to leave the and all EU Member States’ interests to
EU Single Market and stop applying our achieve an orderly departure. But that
common ecosystem of rules, supervision can only happen if it is what both sides
and enforcement mechanisms. In want. What matters is not our wishes
particular, it refuses to recognise any but only the reality before us, in other
role for the European Court of Justice.
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words, first of all, what Britain wants. the Withdrawal Agreement, including
With Prime Minister Boris Johnson, the the protocol on Ireland and Northern
British Government wants to define for Ireland. I thank Presidents von der
itself what relationship it will have with Leyen and Michel and the Union’s
us after the country leaves. It will then negotiator, Michel Barnier, and his team
have to live with the consequences, of for their continued skill and measured
course, that is to say with a less closely handling of these negotiations.
interconnected economy.
I believe that a deal with the UK is still
If Britain does not want to have rules on possible and I expressed my hope that
the environment and the labour market or an intensified engagement over the
social standards that compare with those summer will reveal the landing zone
of the EU, our relations will be less close. for an agreement. I was among several
That will mean it does not want standards leaders to acknowledge the importance
to go on developing along parallel lines. of early and comprehensive contingency
planning, given the possibility of no trade
We need to let go of the idea that it is for deal on the future relationship being
us to define what Britain should want. That is reached. Any deal will entail significant
for Britain to define – and we, the EU27, will disruption to our supply chains, business
respond appropriately. models and market access and a
significant impact on the cost of doing
Leo Varadkar in Dáil Éireann 24 June business with the UK. We need to be wise
2020 to that. It will also impact our fishermen
and seafood industry. The arrangements
The then-Taoiseach Leo Varadkar reported to
we have now in this regard cannot
Dáil Éireann on the video conference meeting
possibly be as good in the future.
of the European Council on 19 June 2020. He
made specific reference to the Brexit element Mr Varadkar’s successor as Taoiseach, Micheál
of the Council deliberations: Martin, commented:
While the primary focus of the meeting With regard to Brexit, the lack of progress
was the MFF and the Next Generation on trade negotiation is a major concern.
EU fund, Presidents von der Leyen and The position of the London Government
Michel provided a readout of the high- has not inspired hope that we can avoid
level conference on Brexit that took major economic disruption in January. At
place with Prime Minister Johnson on 15 the very least, it does not appear to be
June. At that conference, they took stock accepting the proposals made last year
of the limited progress made to date in as the basis for a permanent agreement.
the future partnership negotiations. In There is no positive purpose to be served
a joint statement afterwards, both sides by spending time now questioning its
agreed to intensify negotiations with a motivation and tactics. What we can
view to building new momentum. Both do is to state once again that the core
sides also confirmed their commitment principles adopted by the European Union
to the full and timely implementation of are founded on the perfectly reasonable
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basis that one does not get to pick and mandate and for the lead negotiator,
choose which elements of the Single Michel Barnier.
Market one respects.
Implementing what was agreed by the
Now that the blockade of the Northern UK and the EU in the Protocol on Ireland/
Ireland Assembly has been ended, Northern Ireland is also vital. Some
the representatives of the people of progress has been made but much more
Northern Ireland have been loud and detailed work is required for the Protocol
clear in calling for London to respect to be fully operational on 1 January
their wish for enough time and space to 2021. Clarity on this work is particularly
be allowed for negotiations. They quite important to give reassurance and
rightly object to arbitrary limits on the certainty to people and businesses in
transition being imposed by London. In Northern Ireland, and indeed across the
terms of our preparation for Brexit, the island of Ireland. I look forward to the
situation in January was that we were upcoming meeting of the Specialised
not ready for a possible WTO trading Committee expected in mid-July.
relationship with Britain. In tandem with
support for recovery from the impact Ireland is continuing to work with citizens
of the pandemic, we need an urgent and businesses to make sure that we
programme for making sure that, at the are ready for the changes that will come
end of this year, Irish companies are with the end of the transition period.
ready and supported to survive whatever This includes extensive work at our ports
happens once the transition ends. and airports to prepare for additional
controls from 1 January 2021. Rest
Minister Coveney speaks to EU assured that Ireland will play our part
Ambassadors in protecting the Single Market. I would
like to thank colleagues here today who,
On 30 June 2020, the Minister for Foreign in cooperation with their capitals, have
Affairs, Simon Coveney, gave his annual supported our work to ensure that the
address to the EU Ambassadors in Dublin. He UK Land Bridge remains an effective and
commented on the on-going EU-UK talks. efficient route linking Ireland with the
rest of the Single Market.
There may be real challenges in the period
ahead as we face another critical juncture UK Business ‘Warning’ to Prime
of the talks. It would be detrimental to all Minister
of our interests to allow this pressure to
undermine EU solidarity. In the face of More than one hundred business leaders have
the UK approach to the talks, and their written to Prime Minister Johnson warning
attempt to create a public narrative of that it would be “hugely damaging” to the
unreasonable EU asks, it is vital that we UK economy if the country departs from the
all maintain our unity. This is our greatest European Union at the end of the year without
strength. From Ireland’s perspective, a deal. The letter was delivered to No. 10 on
this means continuing to voice support 30 June 2020, the deadline for a UK request
for a unified EU position in line with the to extend the transition period.
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The letter states that a no-deal outcome Section Three: Background
would result “in more people out of work Material and Further Reading
and lower living standards.” It emphasises
that businesses “simply do not have time or
Background Material
capacity to prepare for big changes in trading
rules by the end of the year – especially European Commission Statement by Michel
given that we are already grappling with the Barnier following the restricted round of negotiations
upheaval caused by coronavirus” and argues for a new partnership between the European Union
that global tensions and focus on developing and the United Kingdom, 2 July 2020. https://
local supply chains “will make promised trade ec.europa.eu/commission/presscorner/detail/en/
with US, China and others more difficult.” speech_20_1262
It calls for “the best possible trading GOV.UK David Frost’s statement following the
arrangements with the EU […] upholding conclusion of the round of negotiations with the
common high standards currently applicable on EU, w/c 29 June. https://no10media.blog.gov.
both sides in the areas of State aid, social and uk/2020/07/02/david-frosts-statement-following-
employment standards, environment, climate
the-conclusion-of-the-round-of-negotiations-with-
change and tax.” It adds that the UK financial
the-eu-w-c-29-june/
services sector urgently needs “assurance of
an equivalence agreement with the EU that is European Commission Remarks by Michel
broader than the traditional arrangements and
Barnier at Eurofi General Assembly, 30 June 2020.
gives them much greater certainty.”
https://ec.europa.eu/info/sites/info/files/speech-
barnier-eurofi-30062020_en.pdf
EU Coronavirus Vaccine Plan
The UK Government is in discussions on joining Government of Ireland Minister Coveney address
an EU programme designed to secure deals to Dublin based EU Ambassadors, 30 June 2020.
with international drugs companies for supply https://www.dfa.ie/news-and-media/speeches/
of an eventual coronavirus vaccine. The scheme speeches-archive/2020/june/minister-coveney-
seeks to achieve efficiency and solidarity in addresses-dublin-based-eu-ambassadors.php
bringing about timely access to vaccines for the
populations of the Member States. It involves GOV.UK Prime Minister call with Irish Taoiseach
a commitment to massive spending through Micheal Martin, 30 June 2020. https://www.gov.uk/
advance purchase agreements. government/news/pm-call-with-irish-taoiseach-
micheal-martin-30-june-2020
The UK was invited to join the EU programme
in the context of the Brexit Withdrawal EU-UK Agenda: Future relationship Negotiations;
Agreement and a decision is expected in 29 June-03 July 2020 (Brussels) https://
the near future following a debate between ec.europa.eu/info/sites/info/files/brexit_files/info_
Departments on the issue on the political site/20200625_-_restricted_round_agenda.pdf
sensitivities around participating, or not,
in an EU scheme. It has been argued that GOV.UK Appointment of Prime Minister’s National
involvement could complicate the ongoing EU- Security Adviser, 28 June 2020. https://www.
UK negotiations because of potential further gov.uk/government/news/appointment-of-prime-
financing commitments. ministers-nationl-security-advisor
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The Guardian EU parliament leader: Boris The Parliament Michel Barnier says EU is open to
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The Guardian How does David Frost’s new
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irish-food-movement/
Irish Times Brexit: System agreed for Irish goods
to skip checks on UK trade. IT, 4 July 2020. https://
www.irishtimes.com/business/economy/brexit-
system-agreed-for-irish-goods-to-skip-checks-on-
uk-trade-1.4295296
The Guardian First details emerge of system for
checks on goods crossing Irish Sea. Guardian, 2
July 2020. https://www.theguardian.com/uk-
news/2020/jul/02/first-details-emerge-of-system-
for-checks-on-goods-crossing-irish-sea
Irish Times Newton Emerson: Why we need to
talk about Dublin and Belfast. IT, 24 June 2020.
https://www.irishtimes.com/opinion/newton-
emerson-why-we-need-to-talk-about-dublin-and-
belfast-1.4287376
Irish Times Brexit: Port of Larne preparing to
become border control post, says Wilson. IT,
25 June 2020. https://www.irishtimes.com/
news/ireland/irish-news/brexit-port-of-larne-
preparing-to-become-border-control-post-says-
wilson-1.4288217
Further Reading
Bond, Smith and Wallace. Eminent
Europeans. The Greycoat Press.
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