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The first big Cliff is OVERSHIPD. Great Britain and EU have found compromises on three important issues concerning Brexit. Until last, every word was wrestled in joint Declaration. With today’s agreement, way is clear for second phase of negotiations. The main aim is to create a new free trade agreement between EU and United Kingdom.
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What does compromise look like? What happens to EU citizens in UK? How weak is Theresa May? What’s going on now? Time online gives answers to most important questions about Brexit deal.
Why is decision so important today?
Britain has two years to negotiate with EU on conditions of EU exit and to clarify broad lines of a new free trade agreement. At latest at end of March 2019 it comes to Brexit. The negotiations are divided into two phases: in first phase, it was necessary to clarify how rights of EU citizens in UK and British are respected in EU, extent to which UK fulfils its payment obligations to EU and how Issue of Irish border is resolved. Only if re were sufficient progress on se issues was EU willing to enter into negotiations on a future free trade agreement.
This should now be done in Phase 2: What is future relationship? Today, on Friday morning, re was a breakthrough and thus conclusion of first phase: “There has been enough progress so that we can now enter second phase of negotiations,” said EU Commission President Jean-Claude Juncker.
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Both sides have agreed that border between Norrn Ireland and Republic of Ireland will remain a green border. The peace process and so-called Friday Agreement are not to be jeopardised in any case, it is stated in joint document by EU and United Kingdom. Thus, goods and persons can continue to pass border unhindered.
At same time, document notes that Britain will uphold integrity of its own internal market. No new controls will be introduced in trade between Norrn Ireland and British mainland. This calms Norrn Irish DUP, adversary, who had torpedoed provisional agreement from beginning of week and is now back behind Prime Minister Theresa May.
But how does this fit in with British goal of leaving United Kingdom to leave EU internal market and customs Union? A solution is to bring future free trade agreement. It is already clear: this agreement will have to bind Britain closely to EU. The United Kingdom will have to comply with rules of EU internal market and customs regulations – as in case of Norway – so that status of Irish border can be maintained.
The decisive sentence in agreement between EU and United Kingdom is: “If no agreement is reached, United Kingdom will fully comply with all rules of EU internal market and customs union.” In or words, eir EU and United Kingdom agree on a free trade agreement, which UK is practically linking to internal market and customs union, or Britain will have to abide by rules of internal market and Customs union in future. A hard Brexit, scenario of “no Deal” propagated by hardliners, and illusion of being able to act exclusively according to rules of World Trade Organization, is off table.
Britain will not remain a member of customs union and internal market, like Norway, through European Economic Area. But deal ultimately goes beyond a very similar solution. The next few months will show how vague wording is translated into concrete trade rules that give more clarity to economy, industry and trade.
EU negotiator Michel Barnier summed up state of negotiations on Ireland very well in one sentence: we need a lot of flexibility and creativity for a definitive solution.
