EU rejects UK's plan for post-Brexit trade

The European Union has rejected Britain’s proposals for post-Brexit trade, according to the bloc's draft negotiating position.

Draft guidelines for a trade deal with the UK showed the EU wants tariff-free and quota-free trading of goods. But the document demanded continued access to UK fishing waters and said there could be no cherry-picking or “partial participation” in the single market.

The document said the EU would work towards an arrangement similar to its trade deal with Canada. That means services will only be included with restrictions.

The EU said it was ready to soften its position if the UK scraps its so-called red lines such as leaving the single market and no longer being subject to the European Court of Justice.

“Being outside the customs union and the single market will inevitably lead to frictions,” the EU said in the draft. “Divergence in external tariffs and internal rules as well as absence of common institutions and a shared legal system, necessitates checks and controls to uphold the integrity of the EU single market as well as of the UK market. This unfortunately will have negative economic consequences.”

Work must continue on the Irish border and a transition period and other issues will only be agreed as part of the final deal, the paper said.

The bloc also intends to resist May’s suggestion of some sort of associate membership of the EU's agencies, including in aviation. “The European council further reiterates that the union will preserve its autonomy as regards its decision-making, which excludes participation of the United Kingdom as a third-country to EU institutions, agencies or bodies”, the draft document said. “The role of the court of justice of the European Union will also be fully respected.”