The European Union and Great Britain are nearing an agreement on sweeping trade concessions, according to the draft statement for the EU-UK summit on November 20, as reported by Handelsblatt. Both sides intend to largely abolish border controls for foodstuffs, link their emissions trading schemes, and allow young people to live and work in the other economic area for up to three years.
While negotiations covering these three agreements are reportedly complete, the overall package remains conditional. According to EU diplomats, the negotiated accords will only come into effect once Great Britain meets the EU’s demands regarding tuition fees. Brussels requires that EU citizens pay the same fees at British universities as domestic students. A high-ranking EU official noted to the newspaper that nothing is truly decided until everything is finalized.
The proposed agricultural deal aims to eliminate most border checks on food and agricultural products. In return, Great Britain would adopt European food standards and import restrictions applicable to non-EU countries. Furthermore, connecting the emissions trading systems would allow for mutual exemptions under the carbon border adjustment mechanism.
In industrial policy, both Brussels and London seek closer cooperation. Great Britain must adopt trade defense measures against third countries, such as China, in areas like steel, electric cars, and critical technologies, similar to those employed by the EU.
