LONDON — Brexit reset talks took a step forward on Wednesday as the European Commission outlined its negotiating plans on agri-food standards and carbon emissions trading.
The Commission published draft proposals for its negotiating position in the two policy areas — which are among a handful set for discussions. The plans will now be scrutinized by EU governments.
The publication of the proposals represents the first movement in talks since the May 19 summit, where Keir Starmer pledged to “reset” Britain’s relationship with the EU and set out a slate of negotiating objectives.
Under the Commission’s proposals for a sanitary and phytosanitary (SPS) agreement, the U.K. would apply “at all times the full body of” relevant EU rules on “sanitary, phytosanitary, food safety and general consumer protection rules applicable” to agri-food products.
It would also cover “the regulations of live animals and pesticides, the rules on organic production and labelling of organic products, as well as marketing standards applicable to certain sectors or products.”
While London would have no “right to participate in the Union’s decision-making” of those rules, the EU would “consult the United Kingdom at an early stage of policy-making” so it could give its input.
The U.K. would have to apply new EU rules within a set deadline or face legal action under the agreement.
The British government would also make a financial contribution towards “the functioning of the relevant Union agencies, systems and databases to which the United Kingdom would gain appropriate access” through the proposed agreement.
Emissions trading
The Commission’s proposed plan for linking the EU and U.K. emissions trading systems would also “ensure the dynamic alignment of the United Kingdom with the relevant European Union rules to avoid risks of carbon leakage and competitive distortions.”
The plan says that the sectors covered by linked emissions trading should include “electricity generation, industrial heat generation (excluding the individual heating of houses), industry, domestic and international maritime transport and domestic and international aviation.”
It would also create a procedure to “further expand the list of sectors” in the future.
The agreement would “require that the cap and reduction pathway of the United Kingdom are at least as ambitious as the cap and reduction pathway followed by the Union” but also “not constrain” the EU and U.K. from “pursuing higher environmental ambition, consistent with their international obligations.”
Under the Commission’s proposal, the U.K. would get a mutual exemption from the EU’s Carbon Border Adjustment Mechanism (CBAM).
In some policy areas, the European Commission must obtain legal mandates from EU member states before it starts negotiating on their behalf. Further mandates are expected in other areas covered by the U.K.-EU reset, for example on electricity trading.
Some policy areas do not require mandates, either because they are an EU competence or because one already exists. For example, negotiations about the U.K. joining the Erasmus exchange program are likely to be covered by a provision in the existing trade agreement allowing U.K. participation in EU programs.
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