EU wants to have its cake and eat it! Brussels plot to dodge tariffs but STILL charge UK

BRUSSELS diplomats are pushing for a speedy trade deal with Britain so Europeans do not have to pay tariffs on goods and food – but still want to punish the UK with restrictions.

European Union (EU) trade attachés have met in secret to discuss how they can get one over on the UK in Brexit trade talks, despite leaders insisting trade will only be negotiated once the Brexit divorce – and £50bn bill – is settled.A transitional deal in which both sides would pay no tariffs on each other’s goods is said to be the most popular idea and would take effect as soon as Britain leaves the EU in March 2019, according to Politico.The EU’s chief Brexit negotiator Michel Barnier is the brains behind the idea, two trade diplomats claimed.

eu tariffsGetty          The EU is keen to have free trade when it suits it

A trade attaché said a provisional tariffs-only trade agreement would avoid “falling off the cliff-edge”, however the UK would remain “worse off” due to the exclusion of its service sector and other regulatory issues.

Michel BarnierGetty          The EU’s chief Brexit negotiator Michel Barnier is thought to be behind the secret plans

Due to both the UK and EU countries heavily relying on each other, including the lucrative German car industry and Italian food sector, avoiding tariffs is in the interest of many influential industries.They are banking on a full trade agreement being in place before Britain leaves the single market as without one the UK would be under World Trade Organisation (WTO) rules which would increase taxes for the EU, including 10 per cent on cars, while agricultural tariffs would rocket.

Without an EU-UK trade deal, industry chiefs fear Britain will automatically have to start paying duties which non-European countries currently do.There are solid fears the City could retaliate as it fights to keep its world-renowned banking and aviation businesses from moving to the continent.

Despite diplomats plotting behind closed doors, the EU is refusing to comment on trade agreements.European Commission spokeswoman Mina Andreeva, said: “Negotiations have not yet started and it is therefore too early to speculate about whether there will be a transitional agreement and if so, what shape it will take.”Germany is said to want Britain to pay massive fees to continue trading freely without being in the single market, however those in London remain optimistic and believe banks and financial services will get around any fees.

Mike Vercnocke, head of European affairs for the City of London Corporation, said: “The City is very flexible, you already see companies serving clients by other means.”

City of LondonGetty           European cities such as Frankfurt are trying to take Britain’s financial services away from it

Liam FoxGetty           Britain’s international trade secretary Liam Fox will be pushing for the best deal for Britain

European airlines such as Lufthansa and Air France are pushing for the EU to slap strict aviation rules on British competitors after Brexit.This would mean UK-based airlines such as Ryanair and easyJet having to show they are mainly owned by EU companies if they want access to European skies.

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