Agreement forged after nine months of tense negotiations
U.K. and European Union flags are seen ahead of the meeting of European Commission President Ursula von der Leyen and British Prime Minister Boris Johnson in Brussels on Dec. 9. © Reuters
LONDON (Financial Times) — U.K. Prime Minister Boris Johnson and Ursula von der Leyen, European Commission president, agreed the deal after nine months of negotiations, culminating in Christmas Eve haggling over fishing rights.
“The deal is done,” Johnson wrote on Twitter, as Downing Street said in a statement that the agreement meant the country had “taken back control of our money, borders, laws, trade and our fishing waters”.
“Everything that the British public was promised during the 2016 referendum and in the general election last year is delivered by this deal,” the Downing Street statement continued. “We have got Brexit done and we can now take full advantage of the fantastic opportunities available to us as an independent trading nation, striking trade deals with other partners around the world.”
Von der Leyen said: “This moment marks the end of a long voyage.” The agreement will give a new relationship “solid foundations,” she said. “We can finally leave Brexit behind us, Europe continues to advance.”
It will come into force on Jan. 1, guaranteeing tariff-free trade on most goods and creating a platform for future co-operation on issues such as crime-fighting, energy and data sharing.
In a sign the deal might calm the bitter debate on Europe that has dominated British politics for decades, Nigel Farage, Brexit party leader, declared: “On the big stuff, the war is over.”
Sterling had traded near its highs of the year against the dollar on Thursday as expectations grew of a deal announcement. The currency rose 0.5% in early London trading to $1.3559.
Although it will not come close to replicating Britain’s existing trade relationship with the EU — the U.K. is leaving the customs union and single market — the deal is likely to be welcomed by business groups.
The agreement means the two sides have negotiated an amicable divorce, which should help to alleviate potential chaos at the border on Jan. 1, when trade will become subject to customs declarations and checks.
It is the biggest trade agreement the U.K. is likely to strike: in 2019 Britain sold 294 billion pounds ($398 billion) of goods and services to the EU — 43% of the country’s total exports. More than half of U.K. imports, worth 374 billion pounds, came from the 27-country bloc.
However, the deal does little for services and Pascal Lamy, former head of the World Trade Organization, noted this was the first trade negotiation in history that started with free trade and focused on erecting barriers.
The agreement was sealed after all-night talks on the allocation of post-Brexit fishing rights in U.K. waters which dragged into Thursday afternoon. Johnson and von der Leyen held four “very frank” negotiating sessions on Wednesday, officials said.
Another final sticking point was about cars: Johnson sought a deal to help U.K.-based Nissan and Toyota factories develop electric cars with parts imported from Japan, which might have attracted heavy tariffs.
Von der Leyen said that, for her, the deal meant “quiet satisfaction and frankly speaking relief.”
“I know this is a difficult day for some,” she added. “And to our friends in the U.K. I want to say, parting is such sweet sorrow.”
Source: asia.nikkei