Brussels rebuffs UK bid to prise open access to EU single market

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A British push to prise open access to the EU single market as part of a “reset” of post-Brexit relations has been rebuffed by Brussels, as talks intensify ahead of a crucial summit in London next month.

Sir Keir Starmer, British prime minister, had sought a mutual recognition agreement with the EU on certifying product standards that would have cut red tape for British businesses sending goods into the bloc’s single market.

But France rejected the demand outright, according to EU diplomats, and there was general agreement the idea was a non-starter.

One EU diplomat said on Friday: “It’s not going to happen. Switzerland has this, but they pay into the EU budget and accept free movement.”

The skirmish is the start of a huge haggle between Britain and the EU, which both sides expect will intensify in the autumn, with the aim of finalising a deal by the end of the year.

Starmer and Ursula von der Leyen, European Commission president, said this week that countries should agree a security and defence pact at the May 19 summit, opening the door for Britain to access a new EU €150bn defence fund.

To facilitate that deal, Britain was expected to agree to roll over current EU fishing rights in UK waters for a number of years, diplomats from the bloc said, possibly deferring further discussions on the issue until after the next UK election, expected in 2029.

Meanwhile, there would also be a separate summit communique setting out a “common understanding” of the potential elements of a wider deal later in the year, covering issues including youth mobility, energy security and easier movement for Britons across Europe.

According to EU diplomats, Starmer’s envoy to Brussels — former Treasury official Michael Ellam — asked that the document should not be finalised until next month to avoid “interfering” with English local elections next Thursday.

The UK had made three “asks” of Brussels as the two sides look to formulate the document that will form the basis of post-summit negotiations, according to senior EU diplomats.

EU member states briefed last week by the European Commission following talks with the UK reacted coolly to the three British demands, which include a deal to combat illegal migration, steps to improve access for tour artists and an agreement on certification of industrial goods.

Senior EU officials reported Brussels had sent a clear signal that the bloc would not offer the UK a so-called mutual recognition of conformity assessment, which would enable goods certified in Britain to be placed directly on the single market.

Diplomats said Brussels’ refusal points to the limits of the UK’s ability to remove trade barriers with the EU while sticking to its red lines on not rejoining the single market or re-entering a customs union with the bloc.

They also cautioned a so-called returns agreement, where illegal migrants in the UK would be sent back to the EU countries where they first entered the bloc, was also highly unlikely, given concerns over migration in member states.

In recent weeks the UK and France have been in talks, reported by the Financial Times, about a migrant returns agreement that would involve one person being deported from the UK in exchange for France sending another individual the other way.

However, there is scepticism such a deal could be expanded into a multilateral pact.

The UK, while rejecting the EU’s expansive version of a youth mobility scheme for 18 to 30-year-olds, is also pushing for a deal to improve access for British touring artists and musicians following fierce lobbying from the industry.

Starmer included such a deal in Labour’s 2024 election manifesto despite the European Commission already warning the previous Conservative administration that improving access for musicians and their equipment required elements of single market access both main UK political parties have ruled out.

EU diplomats did not entirely rule out that concessions could be made to the UK by member states pledging to facilitate visas for artists. On migration, British citizens might also be granted access to automated e-gates when arriving at airports in the EU.

Ellam told EU negotiators any youth mobility scheme would have to be capped with a quota to control numbers, according to EU officials. The British side noted similar programmes with countries like Canada had upper limits.

A UK government spokesperson said: “We are not providing a running commentary on our discussions with the EU; these are ongoing and cover a wide range of issues.”