UK will be able to negotiate and strike trade deals during transition
The EU is poised to back down over whether the UK can begin to negotiate and sign new trade deals during the transition period.
According to The Times, the UK will be able to act under its own steam from March 2019 without seeking permission for the European Union.
Although the formal negotiating guidelines still say the UK cannot implement trade deals “unless authorised to do so by the Union”, but the EU’s chief Brexit negotiator Michel Barnier, is understood to have relaxed his position.
As a result, the latest draft transition agreement says the UK can both negotiate and sign its own deals.
The EU has also agreed that the UK can act “in its own right” at the World Trade Organisation during the transition, provided it does not contradict the EU’s policies.
This softening mood comes ahead of the European Council summit, which takes place next week.
In the run up to the meeting – seen as a critical point by many in the business world, especially the City – government spokespeople have appeared far more confident that the deal will go through. Ahead of last year's joint agreement, which paved the way for the EU to unlock the second phase of negotiations, there was huge uncertainty.
So confident are negotiators in Brussels, they believe talks could be wrapped up as early as Monday.