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Europe Daily Bulletin No. 11757
INSTITUTIONAL / United kingdom

Theresa May wants to negotiate divorce settlement and free-trade deal at the same time

The divorce proceedings have begun.  At midday on Wednesday 29 March, the British ambassador to the EU, Tim Barrow, gave the president of the European Council, Donald Tusk, the letter in which the United Kingdom activates Article 50 of the EU Treaty to formally request withdrawal from the European Union.

The six-page letter has been awaited since the results of the 23 June 2016 referendum on the UK’s membership of the EU (see EUROPE 11580).  It was signed on the evening of the preceding day by the British prime minister, Theresa May.

Addressing British MPs on Wednesday, May said it was a historic event and there would be "no turning back".  She said better days were to come and she wanted to build a strong and deep partnership with the 27 other member states.

In the letter, she highlighted her desire to negotiate the divorce from the EU at the same time as a future trading and economic relationship with the EU27 in the form of a free-trade deal.

This request has already been rejected by the European Parliament, which wants the various stages to be respected – firstly a divorce, then negotiating a new relationship (see other article).  The German chancellor, Angela Merkel, took this view on Wednesday, saying that the terms of the divorce had to be settled before entering talks on future relations with London.

In the Article 50 activation letter, May said it was in the UK’s and EU’s best interests to use the process to come to achieve these objectives fairly and in an orderly manner, with as little disruption as possible to either side.  She said the UK wanted to ensure Europe remains strong and prosperous and is able to project its values, lead the world and defend itself against threats to security.  She said she wanted the UK, via a new special and profound partnership with a strong European Union, to play a full role in the achievement of these objectives.

May was very clear about what London expects from the negotiations, namely achieving a special and profound partnership between the UK and the EU, taking account of economic cooperation and cooperation on security issues.  She said they will need to discuss how to determine fair regulation for the UK’s rights and duties as an exiting member state, in line with the law and in the spirit of continued UK-EU partnership.

May said the EU and UK should work together to minimise disruptions and provide the greatest possible certainty.  Investment, companies and citizens in the UK and the other 27 member states, and those of other countries around the world, want to be able to plan.

Transition periods will be necessary in order to avoid confusion during the process of assessing the current and future partnerships.  People and companies in the UK and the EU, May said, would benefit from periods of implementation to adjust harmoniously to the new arrangements, and it would help the two sides to minimise unnecessary disruptions if the two sides agreed to this principle from the outset of the process.  She said it would also be necessary to agree relatively quickly on the unique relationship between the United Kingdom and the Republic of Ireland.

May’s letter can be found at: https://goo.gl/Nllvaf   (Original version in French by Solenn Paulic)

Contents

INSTITUTIONAL
ECONOMY - FINANCE - BUSINESS
SECTORAL POLICIES
EXTERNAL ACTION
NEWS BRIEFS