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Theresa May will vow to secure the most comprehensive trade deal “anywhere in the world” as she sets out five tests any Brexit agreement must meet.
She will pledge to secure the unprecedented deal covering goods and services in her latest major Brexit speech on Friday – but has already been accused by domestic critics of proffering “empty slogans”.
Even as she put finishing touches to her text, top EU politicians also claimed she can only seek a less ambitious trade deal “based on the foundation of realism”, given her refusal to compromise on key issues.
It was also reported on Thursday that there is still disagreement in her Cabinet on whether her speech should offer a “binding commitment” to align with some EU rules in the future.
The speech follows days in which Ms May has clashed with EU leaders over the UK’s insistence that it can keep an all but open border between Northern Ireland and the Republic, while also leaving the EU’s customs union.
It had originally been scheduled to take place in the North East but the venue was changed at the last minute with storms and snowy weather hampering travel.
Instead, the Prime Minister will go to Mansion House in London, where she will say: “What I am seeking is a relationship that goes beyond the transactional to one where we support each other’s interests.
The biggest issues facing UK on leaving EUShow all 8 1 /8The biggest issues facing UK on leaving EU The biggest issues facing UK on leaving EU Post-Brexit immigration workers sorting radishes on a production line at a farm in Norfolk. One possible post-Brexit immigration scheme could struggle to channel workers towards less attractive roles - while another may heighten the risk of labour exploitation, a new report warns.
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The biggest issues facing UK on leaving EU Customs union A key point in the negotiations remains Britain's access to, or withdrawal from, the EU customs union. Since the referendum there has been hot debate over the meaning of Brexit: would it entail a full withdrawal from the existing agreement, known as hard Brexit, or the soft version in which we would remain part of a common customs area for most goods, as Turkey does? No 10 has so far insisted that “Brexit means Brexit” and that Britain will be leaving the customs union, but may be inclined to change its position once the potential risks to the UK’s economic outlook become clearer.
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The biggest issues facing UK on leaving EU Northern Ireland-Irish border Though progress was made last year, there has still been no solid agreement on whether there should be a hard border between Northern Ireland and the Republic of Ireland. To ensure borderless travel on the island, the countries must be in regulatory alignment and therefore adhere to the same rules as the customs union. In December, the Conservative Party’s coalition partners, the DUP, refused a draft agreement that would place the UK/EU border in the Irish Sea due to its potential to undermine the union. May has promised that would not be the case and has suggested that a “specific solution” would need to be found.
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The biggest issues facing UK on leaving EU Transition period Despite protests from a small number of Conservative MPs, the Government and the EU are largely in agreement that a transitional period is needed after Brexit. The talks, however, have reached an impasse. Though May has agreed that the UK will continue to contribute to the EU budget until 2021, the PM wants to be able to select which laws made during this time the UK will have to adhere to. Chief negotiator Michel Barnier has said the UK must adopt all of the laws passed during the transition, without any input from British ministers or MEPs.
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The biggest issues facing UK on leaving EU Rights of EU citizens living the UK The Prime Minister has promised EU citizens already living in the UK the right to live and work here after Brexit, but the rights of those who arrive after Brexit day remains unclear. May insists that those who arrive during the transition period should not be allowed to stay, whereas the EU believe the cut-off point should be later.
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The biggest issues facing UK on leaving EU Future trade agreement (with the EU) Despite this being a key issue in negotiations, the Government has yet to lay out exactly what it wants from a trade deal with the EU. Infighting within the Cabinet has prevented a solid position from being reached, with some MPs content that "no deal is better than a bad deal" while others rally behind single market access. The EU has already confirmed that access to the single market would be impossible without the UK remaining in the customs union.
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The biggest issues facing UK on leaving EU Future trade agreements (internationally) The Government has already begun trying to woo foreign leaders into prospective trade agreements, with various high profile state visits to China, India and Canada for May, and the now infamous invitation to US President Donald Trump to visit London. However the UK cannot make trade agreements with another country while it is still a member of the EU, and the potential loss of trade with the world's major powers is a source of anxiety for the PM. The EU has said the UK cannot secure trade deals during the transition period.
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The biggest issues facing UK on leaving EU Financial services Banks in the UK will be hit hard regardless of the Brexit outcome. The EU has refused to give British banks passporting rights to trade within the EU, dashing hopes of a special City deal. However according to new reports Germany has suggested allowing trade on the condition that the UK continues paying into the EU budget even after the transition period.
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“So I want the broadest and deepest possible agreement – covering more sectors and co-operating more fully than any free trade agreement anywhere in the world today.”
Her “five tests” approach echoes Gordon Brown ’s for joining the Euro – but unlike the ex-Labour PM’s proposals, Ms May’s tests set out equivocal principles that should be met instead of specific economic ones.
The first is that the deal must respect the referendum result, and allow the UK to “take control of our borders, laws and money” – a likely reference to her plan to remain outside of any customs union, the European Court’s reach and stop payments to EU coffers.
The second is that “the new agreement we reach with the EU must endure…[and that the UK and EU] must not find ourselves back at the negotiating table because things have broken down”, which one insider said aimed to urge the EU to be reasonable in its demands.
The others are “protecting our security and prosperity”, “delivering an outcome that is consistent with the kind of country we want to be”, and “bringing our country together”.
The Prime Minister will also say her vision is one of a UK that is a “champion of free trade based on high standards”, in a bid to allay fears that Britain will become a Singapore-style economy off the coast of mainland Europe.
Brexit so far: in picturesShow all 53 1 /53Brexit so far: in pictures Brexit so far: in pictures Brexit campaign Boris Johnson led the VoteLeave campaign
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Brexit so far: in pictures Brexit campaign Boris Johnson MP, Labour MP Gisela Stuart and UKIP MP Douglas Carswell address the people of Stafford in Market Square during the Vote Leave Brexit Battle Bus tour on 17 May 2016. Their lead line on the tour was: “We send the EU £350 million a week, let's fund our NHS instead.”
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Brexit so far: in pictures Voting day A man shelters from the rain as he arrives at a polling station in London on 23 June 2016. Millions of Britons voted in the referendum on whether to stay in or leave the European Union
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Brexit so far: in pictures Referendum results Leader of Ukip, Nigel Farage, reacts at the Leave EU referendum party at Millbank Tower in central London as results indicated that it was likely the UK would leave the European Union
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Brexit so far: in pictures Protesting the result A young couple painted as EU flags and a man with a sign reading “I’m not leaving” protest outside Downing Street against the voters decision to leave the EU on 24 June 2016
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Brexit so far: in pictures David Cameron resigns British Prime Minister David Cameron resigns on the steps of 10 Downing Street on 24 June 2016 after the results of the EU referendum were declared and the United Kingdom voted to leave the European Union
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Brexit so far: in pictures Theresa May Becomes the new Conservative Party leader Theresa May receives a kiss from her husband Philip, after becoming the new Conservative Party leader on 11 July 2016. May became Prime Minister two days later and although she voted to remain in the referendum was keen to lead Britain’s Brexit talks after her only rival in the race to succeed David Cameron pulled out unexpectedly. May was left as the only contender standing after the withdrawal from the leadership race of Andrea Leadsom, who faced criticism for suggesting she was more qualified to be prime minister because she had children
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Brexit so far: in pictures Lancaster House keynote speech on Brexit British Prime Minister Theresa May delivers her keynote speech on Brexit at Lancaster House in London on 17 January 2017. Where she spoke about her offer to introduce a transition period after the UK formally leaves the European Union in March 2019. Despite repeating the pro-Brexit mantra of “no deal is better than a bad deal”, the Prime Minister claimed she wanted a “tone of trust” between the negotiators and said Britain was leaving the EU but not Europe. She said there should be a clear double lock needed for the transitional period to make sure businesses had time to prepare for changes to their trading relationships with the EU
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Brexit so far: in pictures Triggering of Article 50 British Prime Minister Theresa May in the cabinet, sitting below a painting of Britain's first Prime Minister Robert Walpole, signs the official letter to European Council President Donald Tusk invoking Article 50 and the United Kingdom's intention to leave the EU on 29 March 2017
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Brexit so far: in pictures Gibraltar nonsense Tensions have risen over Brexit negotiations for the Rock of Gibraltar. The European Council has said Gibraltar would be included in a trade deal between London and Brussels only with the agreement of Spain. While former Conservative leader Michael Howard claimed that Theresa May would be prepared to go to war to protect the territory. Spain's foreign minister stepped in only to assert that there was no need for the dispute
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Brexit so far: in pictures Shock snap election Soon after triggering Article 50, Theresa May called on 18 April 2017 for a snap general election. The election would be on 8 June and it came as a shock move to many, with her reasoning to try to bolster her position before tough talks on leaving the EU
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Brexit so far: in pictures Dissolution of Parliament for General Election Campaign Prime Minister Theresa May makes a statement in Downing Street after returning from Buckingham Palace on 3 May 2017. The Prime Minister visited the Queen to ask for the dissolution of Parliament signalling the official start to the general election campaign
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Brexit so far: in pictures Conservatives lose parliamentary majority An arrangement of British daily newspapers showing front page stories about the exit poll results of the snap general election. British Prime Minister Theresa May faced pressure to resign on 9 June 2017 after losing her parliamentary majority, plunging the country into uncertainty as Brexit talks loomed. The pound fell sharply amid fears the Conservative leader would be unable to form a government
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Brexit so far: in pictures Labour gains Britain’s opposition Labour Party leader Jeremy Corbyn gives a tumbs up as he arrives at Labour headquarters in central London on 9 June 2017 after the snap general election results showed a hung parliament with Labour gains and the Conservatives losing their majority
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Brexit so far: in pictures Brexit negotiations begin Brexit Minister David Davis and European Commission member in charge of Brexit negotiations Michel Barnier address a press conference at the end of the first day of Brexit negotiations in Brussels on 19 June 2017
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Brexit so far: in pictures May speaks in Florence British Prime Minister Theresa May speaks on 22 September 2017, in Florence. May sought to unlock Brexit talks after Brussels demanded more clarity on the crunch issues of budget payments and EU citizens' rights
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Brexit so far: in pictures EU council summit – insufficient progress German Chancellor Angela Merkel joins other EU leaders for a breakfast meeting during an EU summit in Brussels on 20 October 2017. The EU spoke about Brexit and announced that insufficient progress had been made
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Brexit so far: in pictures DUP derails settlement on the withdrawal part of Brexit DUP Deputy Leader Nigel Dodds walks off after speaking to members of the media as a protester holding flags shouts after him outside the Houses of Parliament on 5 December 2017. British Prime Minister Theresa May was forced to pull out of a deal with Brussels after the DUP said it would not accept terms which see Northern Ireland treated differently from the rest of the UK
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Brexit so far: in pictures May suffers defeat over EU (Withdrawal) Bill Theresa May suffers defeat in parliament over EU (Withdrawal) Bill on 13 December 2017. The Government was defeated by Conservative rebels and Labour MPs in a vote on its key piece of Brexit legislation. MPs amended the EU (Withdrawal) Bill against Theresa May's will, guaranteeing Parliament a “meaningful” vote on any Brexit deal she agrees with Brussels. Ms May's whips applied pressure on Conservative rebels who remained defiant in the Commons throughout the day and in the end the Government was defeated by 309 votes to 305
Brexit so far: in pictures EU council summit – sufficient progress Britain's Prime minister Theresa May arrives to attend the first day of a European union summit in Brussels on 14 December 2017. European leaders discussed Brexit and announced there was finally sufficient progress at the end of the two days
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Brexit so far: in pictures The game moves to transition Brexit Secretary David Davis gives evidence on developments in European Union divorce talks to the Commons Exiting the EU Committee in Portcullis House, London, on 24 January 2018
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Brexit so far: in pictures Trade deal is what May wants French President Emmanuel Macron gestures to Britain's Prime Minister Theresa May after they hold a press conference at the Royal Military Academy, Sandhurst, on 18 January 2018. May and Macron agreed a new border security deal, through which the UK will pay more to France to stop migrants trying to reach British shores on 18 January 2018
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Brexit so far: in pictures Transition period agreed The UK and EU agree terms for Brexit transition period on 19 March, 2018
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Brexit so far: in pictures No agreement on Irish border The EU and UK however failed to reach an agreement on the Irish border during the successful talks on other Brexit issues
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Brexit so far: in pictures EU attacks May’s ‘fantasy’ strategy For months after the March deal is struck there is little significant progress in talks. One senior EU official tears into Britain’s ‘fantasy’ negotiating strategy and accuses Theresa May of not even having a position on a variety of important issue
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Brexit so far: in pictures UK releases Ireland plan Britain releases a new customs plan to solve the Northern Ireland border but Michel Barnier says it leaves ‘unanswered’ questions and would not prevent a hard border
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Brexit so far: in pictures Chequers plan agreed The cabinet agrees on a plan known as the "Chequers deal" on July 6 2018. The plan seeks regulatory alignment on goods and food, divergence on services, freedom from the European Courts of Justice and an end to free movement. Many were surprised that the hard Brexiteers of the cabinet would agree to this plan
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Brexit so far: in pictures Chequers plan sparks resignations Brexit Secretary David Davis and Foreign Secretary Boris Johnson and numerous ministers resign in the days following the Chequers agreement
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Brexit so far: in pictures Davis out, Raab in On 9 July, Dominic Raab replaces David Davis as Brexit Secretary. Raab is a keen Brexiteer and was a housing minister before taking over from Davis
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Brexit so far: in pictures Barnier's "deal like no other" EU chief negotiator Michel Barnier claims on August 29 2018 that they are prepared to offer Britain a trade deal like no other, though he stressed that they will not divide or change the single market to accommodate Britain
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Brexit so far: in pictures "My deal or no deal" In an interview on Panorama on September 17, the Prime Minister insists that any Brexit deal will be offered to the EU on her terms. She asserts this amongst continued attacks on her approach to Brexit by Boris Johnson and the European Research Group, headed by Jacob Rees Mogg
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Brexit so far: in pictures EU leaders reject Chequers Quite the blow was dealt to the Prime Minister at a EU leaders summit in Salzburg on September 20. European Council President Donald Tusk stated that the Chequers deal "will not work"
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Brexit so far: in pictures May demands respect Following the rejection of her Chequers plan the day before, the Prime Minister voiced her anger that the EU had dismissed it without offering an alternative. She stated that “throughout this process, I have treated the EU with nothing but respect. The UK expects the same. A good relationship at the end of this process depends on it."
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Brexit so far: in pictures People's Vote march As the People's Vote campaign and The Independent's Final Say campaign gain traction, 700,000 people turn out in London to demand a final say on the UK's Brexit deal on October 20 2018
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Brexit so far: in pictures More resignations As the Prime Minister settles on a Brexit deal, Brexit secretary Dominic Raab resigns along with Work and Pensions secretary Esther McVey and many other ministers
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Brexit so far: in pictures Final Say petitions delivered to Downing Street People's Vote supporting MPs Chukka Umunna, Justine Greening and Caroline Lucas and The Independent editor Christian Broughton deliver over a million signatures in favour of a People's Vote to the Prime Minister at 10 Downing Street on December 3 2018
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Brexit so far: in pictures May delays vote On December 10, the Prime Minister delayed the vote on her Brexit deal as it was near certain not to pass through the Commons due to Tory rebels and lack of DUP support
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Brexit so far: in pictures No confidence motion Tory MPs triggered a confidence vote in the Prime Minister on December 12. She won by 200 votes to 117
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Brexit so far: in pictures Commons rejects the deal Following the delay, the Prime Minister's deal was rejected in the Commons by a historic 230 votes
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Brexit so far: in pictures Corbyn tables a no confidence motion Following the rejection of the Prime Minister's deal, opposition leader Jeremy Corbyn tabled a motion of no confidence in the government, which the government won by a margin of 19
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Brexit so far: in pictures Plan B The Prime Minister won the support of the commons to return to Brussels to renegotiate the backstop on January 29. In the same sitting, MPs also voted against a no-deal Brexit in a non-legally binding motion
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Brexit so far: in pictures EU council president savages Brexit campaigners who failed to plan for departure: ‘Special place in hell’ There is a “special place in hell” for pro-Brexit campaigners who demanded Britain leave the EU without explaining how it should happen, Donald Tusk has said. The European Council president launched the scathing attack as he accused anti-EU campaigners of pushing for Brexit “without even a sketch of a plan how to carry it out safely.” Mr Tusk also dismissed suggestions that the EU could reopen negotiations over the controversial Northern Ireland backstop, dealing a blow to Theresa May‘s hopes of securing fresh concessions as she tries to get her exit deal through parliament. Speaking in Brussels alongside Irish taoiseach Leo Varadkar, Mr Tusk said: “I’ve been wondering what a special place in hell looks like for people who promoted Brexit without even a sketch of a plan how to carry it out safely.” He also tweeted the accusation moments later
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Brexit so far: in pictures EU and UK announce talks to restart after Theresa May visits Brussels Both have agreed to restart Brexit talks to find “a way through” the deadlock in Westminster, following a visit by Theresa May to Brussels. In a joint statement the British government and European Commission said Ms May had had a “robust but constructive” meeting with president Jean-Claude Juncker, and that the pair would meet again before the end of the month. But the EU again refused to reopen the withdrawal agreement and its controversial backstop – with any negotiations expected to focus on the future relationship between the UK and EU instead
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Brexit so far: in pictures Brexit strategy lost MPs voted down May's Brext plans, with a majority of 45. The prime minister did not appear in parliament to see another defeat
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Brexit so far: in pictures Labour and Conservative MPs resign and create the Independent Group Back row of Chris Leslie, Gavin Shuker, Chuka Umunna and Mike Gapes, middle row of Angela Smith, Luciana Berger and Ann Coffey and front row of Sarah Wollaston, Heidi Allen, Anna Soubry and Joan Ryan
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Brexit so far: in pictures Non-biding votes on amendments to Brexit motion On February 27 he house held a series of votes, unanimously calling for the UK and EU to guarantee citizens rights in a no-deal scenario
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Brexit so far: in pictures Attorney General publishes legal advice A hammer blow for May as Geoffrey Cox said her renegotiated deal can still leave UK in backstop against its will. Mr Cox did say the prime minister’s efforts had reduced the risk of the UK being trapped in the backstop indefinitely. MPs went on to vote against her deal by 391 to 242
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Brexit so far: in pictures No-deal off the table MPs rejected a no-deal Brexit by 43 votes on March 13, with cabinet ministers rebelling in another humiliating defeat for Theresa May. A day later they voted in favour of the prime minister seeking an extension to Article 50
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Brexit so far: in pictures House speaker bans May from third Commons vote on same Brexit deal John Bercow sensationally told Theresa May he would stop her making another attempt to pass her Brexit deal unless she has secured changes. The Speaker said a further ‘meaningful vote’ would be ruled out of order if the motion was “the same or substantially the same’ – under an ancient convention to stop the government bullying parliament on issues MPs have rejected
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Brexit so far: in pictures May writes to Tusk The prime minister wrote to Donald Tusk, president of the European Council, to ask for a three-month extension to give her more time to try to get her deal through parliament. However the European Commission advises the EU27 should offer a short extension to May 23 or a longer one meaning the UK would participate in European elections
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Brexit so far: in pictures European Council summit Theresa May’s request to extend triggering Article 50 until the end of June was rejected by the EU, and instead offered a shorter time frame. She accepted the offer of a delay until May 22 if her withdrawal deal is approved by Parliament. If MPs rejected it for a third time, the EU said Britain must propose a new plan by April 12. Ms May said she will not support a long delay because it would mean Britain participating in elections for the European Parliament
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Brexit so far: in pictures Brussels confirms preparations for a no-deal Brexit are completed They warned that it is “increasingly likely” the UK will crash out. In a statement the European Commission (EC) said “preparedness and contingency work”, which the EC has been conducting since December 2017, was now finished. The announcement came days after EU leaders agreed to a request by Theresa May to extend the UK’s Brexit date
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Brexit so far: in pictures May resigns
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Critics immediately rounded on the Prime Minister, with Labour MP Chuka Umunna MP, leading supporter of the Open Britain campaign, saying: “They are still pretending we can have our cake and eat it – this is fantasy land.”
Former Labour transport secretary Lord Adonis said: “After 20 months of chaos, this speech shows the Prime Minister still doesn’t have a credible Brexit policy.
“It’s just more empty slogans appealing to both sides in the Tory civil war, followed by surrender.”
Ms May and her Cabinet spent two hours reading and discussing the text at a meeting at Number 10 on Thursday morning.
Theresa May says 'no Prime Minister would ever agree' to EU’s proposal for Northern Ireland to remain aligned with the Republic after Brexit While the official line is that they unanimously agreed the speech is a “real step forward”, officials accepted that the speech would only be “finalised” after the meeting, indicating changes were possible.
One point of contention said to have arisen relates to whether the UK should make a ‘binding commitment’ to align with EU rules and regulations in certain sectors – something Foreign Secretary Boris Johnson and Brexit Secretary David Davis pushed back on.
One Brexiteer Cabinet Minister told The Independent he had made suggestions for changing the speech which he believed the Prime Minister had taken on board, adding: “I’m happy with it.”
Ahead of a meeting with Ms May at Number 10, EU Council President Donald Tusk warned that any trade deal would not deliver the same benefits as the single market.
Michel Barnier says Customs checks could be imposed between Great Britain and Northern Ireland to avoid hard border “There can be no frictionless trade outside of the customs union and the single market”, he said, echoing the phrase used by Ms May.
“Friction is an inevitable side-effect of Brexit by nature.”
With the intervention just hours away, chief EU Negotiator Michel Barnier said the UK had to seek a deal “based on the foundation of realism” and could not avoid making hard choices.
He told business groups he hoped Ms May’s address would “help us move the negotiation forward”, but he warned: “Any vision of the future must take into account the fact that the EU cannot and will not compromise on its founding principles.”
Ms May’s approach to Brexit has seen her insist the UK can leave the EU and its customs union while also keeping the border in Ireland all but open, something which is seen by many as critical to peace in the region.
But earlier this week Mr Barnier published a draft withdrawal agreement text, which proposes a “common regulatory area” across Ireland if other solutions to avoid a hard border fail.
It would create a customs border in the Irish Sea unless Ms May agrees to full alignment across the UK – effectively keeping the entire UK in the EU customs union and single market , which she has ruled out.
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