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UPDATED: UK and EU abandon deadline to continue Brexit trade deal talks

Britain's Prime Minister Boris Johnson and EU chief Ursula von der Leyen have agreed to carry on post-Brexit trade talks after a call between leaders on Sunday.

UPDATED: UK and EU abandon deadline to continue Brexit trade deal talks
An EU flag and Union flag flying near Big Ben, London. Photo: AFP

In a joint statement, Boris Johnson and European Commission President Ursula von der Leyen said it was “responsible at this point to go the extra mile”. The pair discussed “major unresolved topics” during their call.

The two sides had said Sunday was the deadline for a decision on whether to continue with talks, with Britain due to leave the EU single market in 19 days.

On Saturday, Britain took the dramatic step of announcing that armed naval vessels will patrol its waters from January 1 to exclude European crews from the fisheries they have shared, in some cases for centuries.

Brussels' tone has been less bellicose, and von der Leyen has made it clear that the EU will respect UK sovereignty after Britain's post-Brexit transition period, but neither side is yet ready to compromise on its core principles.

Without a trade deal cross-Channel trade will revert to WTO rules, with tariffs driving up prices and generating paperwork for importers, and the failed negotiation may poison relations between London and Brussels for years to come.

On Wednesday, after what von der Leyen described as a “lively and interesting” working supper with Johnson in Brussels failed to find a breakthrough, the EU chief said they had agreed to “come to a decision by the end of the weekend”.

But if the talks are to be extended again, it would only be for “for a maximum of a few days”, France's Minister for Europe Clement Beaune told the newspaper Journal du Dimanche. “We're already in extra time,” he warned.

Much of the text of a possible trade deal is said to be ready, but Britain has rejected Brussels' insistence on a mechanism to allow it to retaliate if UK and EU law diverge in a way that puts continental firms at a competitive disadvantage.

Poisoned ties

“The defence of the single market is a red line for the European Union. What we have proposed to the United Kingdom respects British sovereignty. It could be the basis for an agreement,” a senior EU source said, echoing an earlier von der Leyen statement.

In London, a government spokesman stressed Britain was ready to leave the union and handle its own affairs after 47 years of close economic integration and that “as things stand, the offer on the table from the EU remains unacceptable.

“The prime minister will leave no stone unturned in this process, but he is absolutely clear: any agreement must be fair and respect the fundamental position that the UK will be a sovereign nation in three weeks' time,” the source said.

On Saturday, Downing Street had said the government had a playbook that “maps out every single foreseeable scenario” for potential problems after December 31, and “no one needs to worry about our food, medicine or vital supply chains”.

Johnson has said it is “very, very likely” talks will fail, and EU officials have expressed similar pessimism, but Frost and Barnier talked late into Saturday night and resumed on Sunday.

As talks continued in Brussels this weekend, some hardline UK Conservative MPs sought assurances from Johnson that the navy would be deployed to protect British waters. But others warned against needless provocation.

“We need to be building alliances not breaking them apart,” said Tobias Ellwood, a former army captain who heads the UK parliament's defence select committee.

Border bureaucracy

WTO terms would mean tariffs and quotas, driving up prices for businesses and consumers and the re-introduction of border checks for the first time in decades.

That has already raised the prospect of traffic clogging roads leading to seaports in southeast England, as bureaucracy lengthens waiting times for imports and exports.

Transport companies have also warned that EU member Ireland could see import volumes shrink in the event of new customs procedures for goods routed through Britain.

REMINDER: What Brits in Europe need to know about travel after December 31st

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BREXIT

Commission official: ‘Up to Sweden how strict it is on Brexit applications’

An official from the European Commission has defended its decision not to take action on Sweden's strict treatment of late applications for post-Brexit residency, arguing that it is up to member states how to apply the Withdrawal Agreement.

Commission official: 'Up to Sweden how strict it is on Brexit applications'

In an email sent to The Local, the official confirmed the latest data, published at the end of last year, which showed that 22 percent of residence applications from UK nationals under the Withdrawal Agreement had not been successful in Sweden. The official said this was similar to the rejection rate for Swedish citizens’ applications in the UK. 

“Through its regular monitoring in Annual reports under Article 159(2) of the Withdrawal Agreement, the European Commission is aware of the fact that Sweden has a high rate of refusal of residence applications under Article 18(1) of the Withdrawal Agreement,” the official said. 

But they said that this in itself did not indicate that Sweden was failing to apply the UK Withdrawal Agreement correctly. 

“As long as there is no indication that a Member State in question is incorrectly applying the Withdrawal Agreement rules, it is not for the Commission to tell Member States how strict or lenient they should be when processing late applications,” the Commission official said.

READ ALSO: Brits in Sweden still in limbo years after Brexit deadline

Two EU lawyers The Local spoke to earlier this summer said that they believed that the Swedish Migration Agency had not been correctly applying the proportionality test to late applications, and had been too narrow in its interpretation of what constitutes “reasonable grounds” for a late application.

They also said that they believed the Migration Agency had been overly strict on what level of employment or savings UK citizens were required to have to qualify as resident in Sweden under EU law, and to therefore be qualified for post-Brexit residency.

SEE MORE: Why did Sweden reject Brits for post-Brexit residency

But the Commission official said that when it came to the late applications at least, Sweden was entitled to take the position it had done. 

“If the host State authorities reach the conclusion that a late applicant did not have reasonable grounds for missing the application deadline, they do not have to deal with the application on substance,” the official said.

“This means that someone who would have qualified for the residence rights under the Withdrawal Agreement might not be granted those rights if they missed the application deadline and did not have a valid reason for doing so.” 

READ ALSO: Is Sweden getting EU law wrong on Brexit cases? 

An unusual high rejection rate, the official continued, did not mean that Sweden was breaking the terms of the EU Withdrawal agreement. 

“The fact that there are negative decisions being taken by Member States under Article 18 of the Withdrawal Agreement (WA) does not, in itself, indicate that those Member States apply the Withdrawal Agreement incorrectly,” they said.

The Migration Agency had carried out a review of refusals, they said, checking a selection for “legal quality”, something The Local has previously reported on.

The Commission had received the Migration Agency’s review, they said, but had yet to complete its analysis of the findings. 

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