The UK intends to leave the EU at the end of March 2019. It wants the freedom to negotiate trade deals in its own right with the rest of the world; to be able to restrict immigration from the EU; control its borders; no longer be bound by ECJ decisions or automatically accept new EU laws. Being able to strike trade deals means it cannot be in the customs union, yet it wants a bespoke deal which mirrors being in the customs union but without this key restriction. It wants to have control of its borders but wants a “frictionless” border with the EU between the Republic of Ireland and the UK (Northern Ireland). It wants near frictionless trade with the EU and wants a bespoke trading deal with the EU which mirrors single market membership but, ideally, doesn’t cost the UK anything…
For its part, the EU has consistently stated that the UK will not be allowed to “cherry pick” its relationship with the EU. It has required that the first phase of discussions must find solutions in three areas before the future trading relationship can be discussed: the rights of EU citizens resident in the UK and those of British citizens resident in the EU; the status of the Norther Ireland-Irish Republic border (and its implications for the Good Friday Agreement); and the financial settlement of existing obligations that the UK has to the EU.
The UK has hoped to be able to discuss trade in parallel with the other topics, but it is the EU that sets the agenda and it has said that adequate progress must be made on the three areas before it will move on to trade.
The Uk’s chief negotiator, David Davis, has reaffirmed his hopes that the EU27 will allow talks to move on to trade when they meet next week and “build on the spirit of co-operation we now have”. Davis claimed that progress on citizens’ rights had moved the discussion “even closer to a deal”.
For his part, the EU negotiator, Michel Barnier, stated simply: “I am not able in the current circumstances to propose next week to the European Council that we should start discussions on the future relationship”. Whilst Barnier acknowledged “new momentum” in the discussions he pointed out that there had been no negotiations in the current session on the financial settlement, noting: "On this question we have reached a state of deadlock which is very disturbing for thousands of project promoters in Europe and it's disturbing also for taxpayers."
One could be forgiven for wondering if they were speaking of the same meeting and to the same audience, but then Davis’s comments were intended for a UK audience that he seems to believe has no other source of information on the Brexit discussions. Mr Davis can be as optimistic as he likes about the outcome of the Council of Europe meeting, but the EU has made it clear that they will be following the recommendations of M. Barnier.