Brexit reset negotiations have stalled with the EU rejecting the UK’s demands on a flagship food trade deal and the two sides still far apart on an under-30s visa scheme.
EU foreign ministers discussed the deadlock in private talks in Brussels on Tuesday, The i Paper has learned. The ongoing difficulties cast doubts on hopes that a trio of deals could be signed as early as next month to give Sir Keir Starmer’s embattled leadership a boost.
The two sides have been working towards agreements on food and drink and carbon taxes – both of which would require the UK to follow EU law in return for single market access that would offer frictionless trade in these areas – by June or July. This comes alongside talks for a “youth experience” scheme to make it easier for under-30s to travel, live and work between Britain and Europe.
But at the General Affairs Council, EU foreign ministers appeared pessimistic about the prospect of an imminent deal.
They reported that EU negotiators had rejected a UK demand for transition periods ahead of adopting some aspects of Brussels law in both the food and carbon tax deals.
The British demands came after farmers, growers and food and drink businesses asked for time to adapt rather than a wholesale switch to Brussels regulations from mid-2027, as is planned.
But EU negotiators have rejected the prospect of any lengthy transition periods and called on the UK to adopt Brussels rules fully. They believe “dynamic alignment” of regulations – Britain mirroring EU laws in real time – is the only way to get the food and carbon tax rules over the line.
Talks on a youth experience under-30s visa scheme also remain difficult, with the two sides deadlocked over Brussels demands for the UK to lower university tuition fees for EU nationals by charging them domestic rather than higher international rates. Post-Brexit EU undergraduate student fees in the UK typically range between £10,000 and £45,000 a year, depending on the course and instituition – but can be even higher in some cases. Home student fees stand at £9,535 a year.
The ministers said that the current international fees charged to EU students are unacceptable for most citizens of the bloc, and suggested a UK concession in this area could be presented as an investment in future relations.
They also discussed the leadership challenge facing Starmer, as well as his recent call to move even closer to Europe.
Crucially, no date has yet been set for the UK-EU summit to sign off on the three deals – which must be agreed as a package – amid leadership turmoil in Britain, despite the Prime Minister and European Commission President Ursula von der Leyen agreeing earlier this month to step up preparations.
UK officials have floated the idea of a single market for goods with the EU as the next possible phase of the reset but during Tuesday’s talks the ministers reiterated the principle of ‘no cherry picking’ the benefits of Brussels membership, which has previously been a reference to the fact that Britain would need to agree to free movement of people in return for single market membership.
It comes after Downing Street said it did not recognise suggestions that the summit would be delayed due to the uncertainty over whether Starmer can continue in No 10 if Andy Burnham wins the Makerfield by-election on 18 June.
A UK Government source claimed Britain was committed to full dynamic alignment on both food and drink and emissions trading, while negotiating on a small number of exceptions as agreed with the EU last year.
But the source acknowledged the UK and EU were in negotiations around potential transition periods for some aspects of alignment. They rejected the suggestion that this would be for long periods.
Commenting, UK In A Changing Europe director Anand Menon said: “Ironically, it is now the EU saying ‘no deal is better than a bad deal’, not least because they know that Keir Starmer is desperate to get this first set of negotiations over the line but there is no agreement in sight.”
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