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Brexit deal: Britain must accept European Court of Justice rulings until 2021, EU says

Laura Hughes, political correspondent Steven Swinford, deputy political editor 15 DECEMBER 2017 • 1:39PM
http://www.telegraph.co.uk/news/2017/12/15/theresa-may-applauded-eu-leaders-made-big-effort-jean-claude/

* EU leaders give their approval for Brexit talks to move to phase 2
* UK to remain under jurisdiction of the ECJ during transition
* Theresa May applauded by 27 member states
* PM to continue to drive the process forward despite Commons defeat
* Brexit will be delivered 'very successful and very timely way'
* What happens next in the Brexit talks ?
* Tory rebels have increased the chances of a 'no deal'

Britain will be forced to accept the jurisdiction of the European Court of Justice until 2021 and could be unable to sign trade deals, the EU has suggested.

The European Union's Brexit guidelines say that Britain will have to "continue to comply with EU trade policy" during a two-year transition period after Brexit.

It will lead to concerns that Britain may be unable to negotiate and new trade deals until the end of the transition period.

The guidelines also state that the UK must accept the "competence of the Court of Justice" during the transition period, which is likely to anger eurosceptics.

There could also be potential clashes over the EU's limited commitment to make a "political declaration" about a future trade deal in March 2019.

David Davis, the Brexit Secretary, has previously said that negotiations on a future trade deal can be completed by that time.

Jean-Claude Juncker, the European Commission president, praised Mrs May as a "tough, smart, polite and friendly negotiator" and revealed he spent "many days and indeed nights thrashing out all the problems" in phase one.

He added: "Now it's up to us to draft a Withdrawal Agreement together with our British friends and I hope that this withdrawal treaty will be approved and by the European Parliament and by the House (of Commons) in London."

The guidelines pour cold water on Brexiteers' hopes of a swift movement to detailed negotiations on a free trade agreement with the EU.

They confirm that agreement on a future trade relationship can only be finalised once the UK has formally left the EU.

And they state that the EU is currently ready only to engage in "preliminary and preparatory discussions with the aim of identifying an overall understanding of the framework for the future relationship" after additional guidelines have been adopted at a future summit in March.

In a key passage hinting at the obstacles which lie ahead of a trade deal, the document notes that the UK has expressed its desire to leave the single market and customs union, and that the EU will therefore have to "calibrate" its approach on trade and economic co-operation to "ensure a balance of rights and obligations, preserve a level playing field, avoid upsetting existing relations with other third countries, and ... preserve the integrity and proper functioning of the Single Market."

The EU position set out today make clear that any transition period agreed by Brussels "must be in the interest of the Union, clearly defined and precisely limited in time".

Under the proposals, the UK will be required to follow the EU rulebook in its entirety - including laws adopted during the transition period - while playing no part in the decision-making processes of the European institutions.

They confirm that agreement on a future trade relationship can only be finalised once the UK has formally left the EU.

It came as European leaders have given their approval for Brexit talks to move on to the next phase of the negotiations.

Donald Tusk, European Council president, tweeted: "EU leaders agree to move on to the second phase of #Brexit talks. Congratulations PM @theresa-may."

Theresa May was in Brussels on Thursday night for the start of a two-day European Council summit at which she was applauded by leaders of the other 27 member states for her speech over dinner.

She told them that she wanted to approach the remaining stages of EU withdrawal with ambition, creativity and perseverance.

Mrs May said: “A particular priority should be agreement on the implementation period so that we can bring greater certainty to businesses in the UK and across the 27.”

The Prime Minister said she "makes no secret of wanting to move on to the next phase and to approaching it with ambition and creativity", adding: "I believe this is in the best interest of the UK and the EU.

"A particular priority should be agreement on the implementation period so that we can bring greater certainty to businesses in the UK and across the 27."

http://www.telegraph.co.uk/news/2017/12/15/theresa-may-applauded-eu-leaders-made-big-effort-jean-claude/