According to Davis, some EU guidelines are based on an agreement without Brexit
According to the British Minister for Brexit negotiations, some European Union institutions provide guidance to the business sector that does not expect London and the EU to reach an agreement on the relationship between the post-cessation of UK membership.
David Davis, a Financial Times spokesman, said last month wrote a complaint letter to British Prime Minister Theresa May. In a confidential transcript on the London Economic Day, Davis informed the Head of Government that, in his view, the EU institutions treated Britain with this practice, albeit from other EU countries, even though British EU membership has not yet disappeared and this damages the British business sector.
The letter from the head of the Department of the Departure of the United Kingdom (DExEU) led the EU to take a number of steps that could lead to the loss of agreements and treaties, and British companies may be relocated to other EU countries if the Brexit negotiations are concluded without compromise.
The quoted fragment does not reveal what concrete actions Davis is objecting to. However, according to the minister, the European Commission also makes “unilateral declarations” in such diverse areas as corporate law, civil law, international private law and the transport and protection of live animals.
Davis informed the Head of Government in the letter that he asked for legal advice on the matter and invited the European Commission to amend the EU Guidelines, which also took into account the possibility of establishing a bilateral trade agreement.
However, according to the Financial Times comment, it is unlikely that the EU would modify its Brexit guidelines to companies. The paper recalls that Michel Barnier, a Brexit chief negotiator in the committee, already stated in November: he does not know whether the UK business sector has “explained the whole truth” about the concrete consequences of UK membership.
In addition, the British government itself is barely prepared for the possibility of Brexit without agreement. The Finance Minister, Philip Hammond, announced the budget bill for the new financial year, announcing that the British government will allocate £ 3 billion (more than one thousand billion forints) to any future additional financing needs in connection with the termination of British membership.
Hammond added that the cabinet is preparing for “all possible end-uses” of the negotiations on the conditions of termination of British membership in the EU.
However, after the announcement of the December agreement on the conditions for expiry of British membership in the EU, David Davis said: “With the compromise on the first stage of the Brexit negotiations,” the risk of Britain leaving the European Union out of the European Union without a comprehensive trade agreement is dramatically reduced ” there is also a risk that the rules of the World Trade Organization (WTO) will apply to British trade with the EU after Brexit.
Under WTO rules, customs and non-tariff barriers would increase between the United Kingdom and the European Union, which is now virtually total duty-free trade of almost EUR 640 billion a year.