( A FIVE MINUTE READ OF HARD FACTS.)
A transit period is going to lead to a massive EU and British taxpayers loss.
Instead what is needed is a moratorium on the implementation of the final deal, not a flexible transit deal, which will see circumstances changing on both sides.
The issue the UK needs to decide is how to deal with the over 750 international agreements, including trade deals the EU already has. During the transition or indeed a moratorium, the UK will be bound by them, meaning it will have to collect tariffs and make sure EU standards are upheld at its borders.
However, the third partners will have a say in how much the UK can benefit from those existing deals.
It is blatantly obvious that these 750 trade deals are EU international agreements that benefit the members of the EU.
London will have to decide whether to ask the EU to help in rolling over these existing agreements. This should not stop the UK from being able to negotiate their own trade deals during the transition or moratorium period, but these agreements cannot come into force unless the EU-27 agrees or the moratorium expires.
Because it will be politically very sensitive both in England and the EU, making any kind of compromise especially difficult.
Because as the realities hit home England will (as it is its right) endeavour to reinterpret what it has agreed, as will the EU.
Because while trade talks could begin alongside the formal exit negotiations, EU law means that they cannot be concluded until the UK officially exited the EU.
The UK would then revert to being a “third country”.
This would imply the UK would face a period in which it is outside the EU but does not have a new trade deal with the single market. In this case, it would have to rely on World Trade Organization (WTO) rules until the final deal is concluded.
So England does have the right to set the groundwork for a free trade agreement between it and other nations.
It is reasonable to expect that countries with a vested interest in maintaining trade links with the UK may wish to begin informal negotiations.
Under EU law, the bloc cannot negotiate a separate trade deal with one of its own members, as rules have to apply to all member states equally. Similarly, individual member states cannot make trade deals with individual member states, with third countries on their own.
This suggests that, because the UK will remain a full member of the EU throughout the negotiating period set out in Article 50, it could only formally sign trade deals with other countries once it has left.
The UK could insist it has a different legal status now that it notified the EU of its intention to leave. However, there is no legal precedent for such a situation, as Article 50 has never been triggered before.
Since the UK is going to be in a different situation, it could be argued the normal rules can’t really apply and the UK should be able to have informal trade negotiations that could be enforced from the day it leaves, but this is largely hypothetical at the moment.
As for whether the UK could open informal trade talks with non-EU countries like India or China, the UK could make the same legal argument about the change in its status. But we have no way of knowing whether the UK could successfully argue this position regarding trade with EU or non-EU countries.
I say “First, you exit and then you negotiate the new relationship, whatever that is”
What a future trade deal with the EU might look like, and how long it will take to conclude, will be a matter for Parliament and the next prime minister.
So when the BBC news stated recently that Theresa May has done a trade deal with China is this false News or is Britain in breach of the Lisbon Treaty, and if so should negotiations be suspended.
Today we learn that THE CHINESE prime minister has hailed a new high point in UK-China relations after Theresa May signed a cooperation agreement on trade and investments.
Dress it up how you like this is a blatant breach of EU Laws.
The alarm bells are ringing:
All human comments appreciated