UK to pay divorce bill only if EU agrees on future trade deal: Brexit Secy

UK Prime Minister Theresa May had agreed in December to a financial settlement totalling $46-51 bn that ministers said depended on agreeing on future trade ties

Brexit
Illustration by Ajay Mohanty
AFPPTI London
3 min read Last Updated : Oct 22 2019 | 2:11 PM IST

Britain will only pay its EU divorce bill if the bloc agrees on the framework for a future trade deal, the new Brexit Secretary warned in an interview published Saturday.

Dominic Raab, who replaced David Davis after he quit the role earlier this month in protest over the government's Brexit strategy, said "some conditionality between the two" was needed.

He added that the Article 50 mechanism used to trigger Britain's imminent exit from the European Union provided for new deal details.

"Article 50 requires, as we negotiate the withdrawal agreement, that there's a future framework for our new relationship going forward, so the two are linked," Raab told the Sunday Telegraph.

"You can't have one side fulfilling its side of the bargain and the other side not, or going slow, or failing to commit on its side.

"So I think we do need to make sure that there's some conditionality between the two." The British government has sent mixed signals so far on the divorce bill.

Prime Minister Theresa May agreed in December to a financial settlement totalling 35-39 billion pounds ($46-51 billion, 39-44 billion euros) that ministers said depended on agreeing on future trade ties.

But cabinet members have since cast doubt on the position.

Finance minister Philip Hammond said shortly afterwards he found it "inconceivable" Britain would not pay its bill, which he described as "not a credible scenario".

The country is set to leave the bloc on March 30, but the two sides want to strike a divorce agreement by late October in order to give parliament enough time to endorse a deal.

Raab met the EU's top negotiator Michel Barnier for the first time on Friday, where he heard doubts over May's new Brexit blueprint for the future relationship.

But Barnier noted the priority in talks should be on finalising the initial divorce deal.

A hardline stance by the British government on the financial settlement could complicate progress, with Raab insisting on the link with the bill and a future agreement.

"Certainly it needs to go into the arrangements we have at international level with our EU partners," he told the Telegraph.

"We need to make it clear that the two are linked." May's plans formally unveiled in early July envisages a customs partnership for goods and a common rulebook with the EU.

It has faced severe criticism in Britain, including from within her own cabinet and Conservative Party.

Former foreign secretary Boris Johnson and Davis both resigned in opposition.

A new YouGov poll published by the Sunday Times showed just 12 per cent of people backed the proposals as "good" for Britain while 43 per cent thought they were "bad".

*Subscribe to Business Standard digital and get complimentary access to The New York Times

Smart Quarterly

₹900

3 Months

₹300/Month

SAVE 25%

Smart Essential

₹2,700

1 Year

₹225/Month

SAVE 46%
*Complimentary New York Times access for the 2nd year will be given after 12 months

Super Saver

₹3,900

2 Years

₹162/Month

Subscribe

Renews automatically, cancel anytime

Here’s what’s included in our digital subscription plans

Exclusive premium stories online

  • Over 30 premium stories daily, handpicked by our editors

Complimentary Access to The New York Times

  • News, Games, Cooking, Audio, Wirecutter & The Athletic

Business Standard Epaper

  • Digital replica of our daily newspaper — with options to read, save, and share

Curated Newsletters

  • Insights on markets, finance, politics, tech, and more delivered to your inbox

Market Analysis & Investment Insights

  • In-depth market analysis & insights with access to The Smart Investor

Archives

  • Repository of articles and publications dating back to 1997

Ad-free Reading

  • Uninterrupted reading experience with no advertisements

Seamless Access Across All Devices

  • Access Business Standard across devices — mobile, tablet, or PC, via web or app

More From This Section

Topics :Brexit

First Published: Jul 22 2018 | 10:18 AM IST

Next Story