LONDON — A leaked European Parliament resolution reveals the tough task that awaits Prime Minister Theresa May in trying to negotiate a favourable Brexit deal with the European Union.
In the document seen by the Guardian newspaper, the resolution states that Britain will not be given a new trade deal with the EU within the two-year negotiation process and any transitional deal cannot last longer than three years.
In 11 pages of clauses, May is warned in no uncertain times that the EU will use Brexit talks as an opportunity to protect its interests and that a transitional deal will be “limited in scope” and not be as beneficial as EU membership.
It also states that the European Court of Justice (ECJ) will be responsible for ruling on any legal disputes that may arise during any transitional period that follows Britain dropping out of the 28-nation bloc.
Here are the key takeaways from the leaked resolution:
- A transitional deal for after 2019 is possible but these arrangements will not exceed three years and will be “limited in scope as they can never be a substitute for union membership.”
- The European Court of Justice will rule on any legal disputes that may arise during the transitional period.
- The UK will be able to revoke Article 50 but this must be “subject to conditions set by all EU27 so they cannot be used as a procedural device or abused in an attempt to improve the actual terms of the United Kingdom’s membership.”
- There will be “no future discussion” of an EU-UK trade deal if Britain tries to negotiate free trade deals with other countries while still an EU member state.
- No special deal for the City of London “providing UK-based undertakings preferential access to the single market and, or the customs union.”
- UK government must not enforce a cut-off date before 29 March 2019 after which EU nationals coming into the country would lose the automatic right to residency. To do so would break strict EU law.
- Britain must pay all its financial liabilities “arising from outstanding commitments as well as make provision for off-balance sheet items, contingent liabilities and other financial costs that arise directly as a result of its withdrawal.”
- Any final Brexit deal “cannot involve any trade-off between internal and external security including defence cooperation, on the one hand, and the future economic relationship, on the other hand.”
It is also worth remembering that the European Parliament can veto any final deal that British and EU negotiators agree at the end of the Article 50 process. The deal also must be backed by 72% of EU member states.
More from Business Insider UK:
- The pound is climbing higher against the euro and dollar as Article 50 is triggered
- The FTSE 100 drops as Article 50 triggered
- Article 50 has been triggered
- Everything you need to know about the Brexit nightmare that will follow Article 50
- EU leaked document: Britain can reverse Article 50
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