Brexit: EU and UK agree deal on transition period

But Northern Ireland issue remains unresolved

Britain and the European Union have agreed the terms of the Brexit transition period during which the UK will temporarily remain in Brussels’ orbit after leaving the EU.

The two sides reached a compromise, with the EU saying it would allow Britain to sign its own trade deals during the transition, and the UK caving on full free movement rights for EU citizens who arrive during the period, as well as automatically implementing new EU rules drawn up without UK input.

EU chief negotiator Michel Barnier said the arrangement was a “decisive step” towards an overall deal on an orderly withdrawal but that it remained only a step in a longer process.

He reiterated warnings that continued failure to resolve the Northern Irish border issue could put the whole agreement in jeopardy, stating that “all the points are part of the same agreement and have to be agreed together” and that “nothing is agreed until everything is agreed”.

The two sides jointly published a draft withdrawal treaty showing areas where they agreed and disagreed. Different paragraphs were highlighted in either green, yellow or white – respectively representing areas where full agreement had been reached, political agreement had been reached but more clarity was needed, or where discussion was still ongoing.

Mostly green areas included citizens rights and the financial settlement, while large gaps of white were seen around around police and judicial cooperation. The Northern Ireland border section was swathed in yellow, representing the agreement struck in December but the lack of clarity on what that could mean in practice.

On Ireland, the UK confirmed it would accept the “backstop” solution of aligning with EU regulations to prevent a hard border if no other resolution could be found.

The deal struck also commits the UK to staying under the EU’s fishing policy until the end of the transition – a development likely to disappoint some MPs in coastal areas, who have pushed for an earlier exit. The deal states that the UK will be consulted on any changes to the policy.

EU national leaders are due to assess the deal at a meeting of the European Council in Brussels on Thursday and Friday, where they are expected to confirm the deal reached and lay out guidelines for negotiating the future trade relationship between the EU and UK.

Speaking from the European Commission, Mr Barnier said the joint legal text “constitutes in my mind a decisive step”.

“We were able this morning to agree, after all those days and nights of hard work, a large part of what will make up an international agreement for the ordered withdrawal of the United Kingdom,” he told reporters in Brussels.

“‘Decisive step’ remains a step. We’re not at the end of the road and there is a lot of work still to be done on important subjects including Ireland and Northern Ireland.”

The EU chief negotiator continued: “Our discussions over the last few days have made it possible to find complete agreement on a legal translation of the points which were agreed in December in the joint report: on citizens’ rights and on the financial settlement.”

Brexit Secretary David Davis said: “The deal we have struck today, on top of that agreed in December, should give us confidence that a good deal for the United Kingdom and the European Union is closer than ever before.”

He added trade talks should start “as soon as possible”.

“We need to get on with this now. We need to come to agreement on this as fast as we can,” he told reporters.

“That is in the interests of businesses within the European Union and businesses within the United Kingdom. This will be the biggest, most comprehensive, most effective trade deal ever.”

In a statement, Theresa May said: “Prior to December, people questioned whether we would get agreement then. We did. People questioned whether we would get agreement now. We have.

“I think what this shows is that with goodwill on both sides, working hard, we can get an arrangement for the future which will be in the interests of the UK and in the interests of the European Union and it will be good for all parts of the UK.”

The EU says a full deal needs to be sorted by October so that it can be signed off and ratified by EU and UK political institutions. The UK will fall out of the bloc at the end of March 2019 under the terms of Article 50, which Theresa May triggered nearly a year ago.