UK and EU on collision course over trade deal demands – as PM refuses to say the word ‘Brexit’

Britain won’t lead a “cut-throat race to the bottom” on standards after Brexit, Boris Johnson has promised in his opening gambit for trade talks with the EU.

The prime minister tried to head off Brussels’ demands by claiming he is not about to “undermine” current labour laws or food and environmental protections.

He hailed free trade as “God’s diplomacy” and “the only certain way of uniting people in the bonds of peace” at a speech revealing he will push for a Canada-style deal in talks over the next 11 months.

But Brussels has insisted the UK needs to commit to the same level of standards in law to get an agreement.

After Brexit took place on 31 January, negotiators have until the end of the year to hammer out a deal before continuity trading rules during the so-called “transition period” stop.

Mr Johnson set himself on a collision course with the EU by rolling out the tough talk in a speech laying out his aims in Greenwich on Monday.

He insisted there was “no need” to abide by Brussels’ rules and insisted British fishing grounds are “first and foremost” for UK boats.

“There is no need for a free trade agreement to involve accepting EU rules on competition policies, subsidies, social protection, the environment or anything similar, any more than the EU should be obliged to accept UK rules,” the prime minister said.

“The UK will maintain the highest standards in these areas, better in many respects than those of the EU, without the compulsion of a treaty.”

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Mr Johnson confirmed that if a Canada-style agreement was not possible, he would be prepared to walk away without a full trade deal, and trade instead on World Trade Organisation terms similar to Australia’s relationship with the EU.

But just an hour earlier, EU chief Brexit negotiator Michel Barnier demanded “reciprocal access” for fishing vessels, and declared that a free trade area with no tariffs or quotas was dependent on a “level playing field… ensured through robust commitments”.

He added that “where there’s a will, there’s a way” to reach a deal.

And Mr Barnier suggested it was impossible to complete the whole agreement in 11 months, despite Mr Johnson saying he will refuse to extend the transition period.

After the prime minister’s speech finished, the pound fell sharply – around a cent and a half against the dollar to less than $1.31 and by a cent against the euro at less than €1.18.

John Allan, president of the Confederation of British Industry, said the speech would help turn “confidence into investment” but cautioned talk of a bare bones deal could “pause investment”.

Acting leader of the Liberal Democrats Sir Ed Davey accused the PM of “gearing up for no-deal masqueraded as an Australian-style agreement, that will hollow out our trade” and branded him “taking us out of the largest free trade zone in the world” as “nothing short of hypocrisy”.

Mr Johnson’s address contained no use of the word “Brexit”; asked after if he had banned its use he told journalists: “I won’t say it’s like the big bang or the Norman conquest but it’s receding behind us in history.”

(c) Sky News 2020: UK and EU on collision course over trade deal demands – as PM refuses to say the word ‘Brexit’