Brexit news: EU to cross 'red line' by imposing new rules on UK during transition period, leaked papers show

Theresa May and Donald Tusk met earlier this year to begin Brexit
AP
Patrick Grafton-Green26 November 2017
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The EU will impose new rules on the UK during any Brexit transition period in a move set to infuriate Theresa May, leaked papers show.

The position set out by Brussels' chief negotiator Michel Barnier would make the application of new EU rules a condition of a transitional deal.

This means Britain could be subject to further Brussels' regulations for about two years after leaving the bloc.

Accepting the imposition of new rules would go against the approach to an implementation period set out by the Prime Minister in her Florence speech, where she said the "framework for this strictly time-limited period... would be the existing structure of EU rules and regulations".

Negotiations: Britain's Secretary of State for Exiting the European Union David Davis and European Union's chief Brexit negotiator Michel Barnier
REUTERS

It could also trigger a revolt by Brexiteers, with Cabinet members like Boris Johnson, Michael Gove and Liam Fox determined 2019 should be the last year the UK accepts new rules from Brussels.

Foreign Secretary Mr Johnson has already indicated that accepting further regulations would cross a red line.

He told the Sun in September: "You heard the Prime Minister say very clearly in Florence that she envisages the transition period being run under existing arrangements – that was the phrase she used, 'The existing rules'."

Foreign Secretary Boris Johnson
Getty Images

Meanwhile Nigel Farage lashed out at the plans, saying: "Here is another set of unreasonable demands from Barnier making no deal seem more attractive.

"The European Commission are clearly not interested in genuine negotiations.

“It would be better for us to walk away and save a lot of time."

Nigel Farage with Michel Barnier in the European Parliament in April 2017.
AFP/Getty Images

The Prime Minister hopes to secure an implementation period between the UK's formal exit date and the commencement of any post-Brexit trade deal so that businesses have time to adjust to the new arrangements.

But the Independent obtained a presentation drawn up by Mr Barnier for representatives of the 27 remaining EU members which said a transitional deal would involve the "automatic application in the UK of new EU rules post-30 March 2019".

It also makes clear that after leaving the bloc the UK would have "no institutional rights, no presence in the institutions" and "no voting rights" – indicating that the UK would have no say over rules it would have to implement in the period.

The Prime Minister wants talks on a trade deal and an implementation period to be given the green light by EU counterparts at the European Council on December 14-15.

But she has been warned by European Council president Donald Tusk that while that was possible it would be a "huge challenge".

He has given her until December 4 to make progress on issues including the Brexit divorce bill and the thorny problem of the Irish border.

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Meanwhile the UK and EU's plans to share out quotas for cheap food imports from countries around the world after Brexit have come under fire from Australia.

Restrictions on how many products can be imported into the EU on favourable rates are set across the bloc and concerns have been raised internationally that exporters could take a financial hit when the UK quits.

The Government has agreed with Brussels to divide up the number of goods that can be brought in on low or zero tariffs based roughly on current rates.

Australian trade minister Steven Ciobo said the move would impose unacceptable restrictions on nations exporting to the bloc.

"The point is that you have a choice about where you place your quota at the moment," he told the BBC.

"Therefore, given that you could put it in the UK or you could put it into continental Europe, why would we accept a proposition that would see a decline in the quota available because of the Brexit decision?"

Other countries with concerns about the quota-splitting plan include the United States, New Zealand, Brazil and Canada.

A Department for International Trade spokesman said: "We want to ensure a smooth transition which minimises the disruption to our trading relationships with other WTO members and tariff rate quotas are one of the issues that we are discussing with them.

"This is largely a technical process and we will continue to engage WTO members including Australia in an open, inclusive and transparent way."

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