Raab suggests UK will stop its £39bn payment to EU if Brussels stalls on trade talks after Brexit
Raab says, if the government found that, having agreed the withdrawal agreement, progress towards a trade deal slowed down, there would be consequences, including to UK’s payments to the EU.
- Raab suggests UK will stop its £39bn payment to the EU if Brussels stalls on trade talks after Brexit.
This is new. At a committee hearing earlier this year,
Suella Braverman, the junior Brexit minister, said the £39bn payment was unconditional; there was nothing in the withdrawal agreement that would guarantee a good trade deal would have to follow, she conceded. (She had a wretched time being questioned about this; you can find some of the exchanges
here.)
In
a recent report on the Brexit negotiations, the Commons Brexit committee highlighted this issue. It said:
A legally binding agreement on the UK’s future relationship can only be agreed once the UK is a third country. If the UK government wishes to make the payment of the financial settlement conditional on reaching a binding agreement on the future relationship, it would need to secure the agreement of the EU27 to inserting text to this effect in the withdrawal agreement. We note that the government has not yet secured a clause in the withdrawal agreement linking the financial settlement to the satisfactory conclusion of negotiations on the framework for the future relationship. We call on the government to confirm whether the inclusion of such a clause is one of its negotiating objectives.
The EU will probably fight this proposal strongly. Their argument is that the “exit payment” covers financial commitments already made by the UK, and that it is not a payment for a good trade deal.