EU: UK has accepted the idea of ‘managed divergence’ for preferential access to single market

EU: UK has accepted the idea of ‘managed divergence’ for preferential access to single market

NEW: Notes of careful optimism in EU off-record briefings .. Not just the public ‘maybe, possibly, but let’s see’ of the European Commission President in front of the European Parliament this morning /1
— Katya Adler (@BBCkatyaadler) December 16, 2020

Added at 6:47am

EU sources saying U.K. has accepted the idea of ‘managed divergence’ in exchange for preferential access to single market. Ie if U.K. divergences from EU standards (which U.K. gov demands as its post #Brexit ‘sovereign right’) then EU has right to retaliate eg with tariffs /2
— Katya Adler (@BBCkatyaadler) December 16, 2020

Added at 6:49am

Obvs right to retaliate would go both ways eg if U.K. views EU businesses as having unfair advantage after Brussels changed standards. Still to be agreed: what mechanism to judge whether unfair advantage exists or not.. EU has accepted it can’t take unilateral action /3
— Katya Adler (@BBCkatyaadler) December 16, 2020

Added at 6:49am

The above +more bilateral shifting means EU feels its priority in the deal is on way to being sorted ie protecting single market and European businesses in it even if UK gets tariff and quota-free access. U.K. principle of sovereignty - right to make own rules - protected too /4
— Katya Adler (@BBCkatyaadler) December 16, 2020

Added at 6:49am

Leading EU diplomat to declare “We’re getting there.” BUT not when it comes to fish .. Here it’s not just about ongoing U.K.-EU differences but also tensions between EU coastal nations /5
— Katya Adler (@BBCkatyaadler) December 16, 2020

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Comment #1
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Dec 16, 2020 6:54am Dec 16, 2020 6:54am

DaJoWaBa
Joined Sep 2018 | Status: Member | 751 Comments

Always take notice of what Katya says. She is a reliable source of inside knowledge and a very good summariser. It's not definitive but a hint of direction of travel.

Comment #2
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Dec 16, 2020 6:54am Dec 16, 2020 6:54am

rashadali
Joined Jan 2016 | Status: Member | 736 Comments

Basecaly they agreed to the right for not agree in the future!

Comment #3
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Edited 7:32am Dec 16, 2020 7:00am | Edited 7:32am

itsonlyme
| Joined Jun 2020 | Status: Member | 90 Comments

As EU countires have lot higher state subsidies than the UK, does that mean after 1st Jan, EU will have to pay tariffs to UK or Boris can subsidise some UK the tech he wants to as we have a lot of headroom
In 2018, the UK spent 0.38% of GDP on state aid (excluding railways, and agriculture and fisheries), while France spent 0.79% and Germany 1.45%.

Comment #4
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Dec 16, 2020 7:00am Dec 16, 2020 7:00am

NotAtrader
Joined Oct 2016 | Status: NotAtrader, A Money Machine. | 3545 Comments

Quoting rashadali

Disliked

Basecaly they agreed to the right for not agree in the future!

Ignored

Exactly!
And this means that we have to accept the idea of ‘managed market manipulations’ along all future negotiations between EU and U.K.
But it’s ok as long as we end up with profits.

Start with 1000$. Increase by 3% every day. After one year 2 213 314$

Comment #5
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Dec 16, 2020 7:44am Dec 16, 2020 7:44am

swd
Joined Apr 2018 | Status: Trading goal is to make money | 167 Comments

Managed divergence - So like a mini WTO situation when there are divergences but amongst themselves rather than having to go to the WTO to arbitrate. Seems fair enough, who decides on divergences? But, unless they peel the fish situation away and deal with separately, the "trade deal" cannot go ahead as it is.

Comment #6
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Dec 16, 2020 8:26am Dec 16, 2020 8:26am

tush1822
Joined Sep 2018 | Status: Member | 110 Comments

Good Idea " The divergence" to keep control on respective currencies in 2021!!

Comment #7
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Dec 16, 2020 8:32am Dec 16, 2020 8:32am

NotBoris
| Joined Jul 2019 | Status: Member | 1495 Comments

In essence, UK has no cards left to play...hear that boris?

Either case of getting a deal or no deal - boris johnson days might just be up by spring as he will not be able to appease either sides with his OVEN-READY meal deal.

Makes me wonder why he is planning to visit India in January - most likely another crunching time for parliament. Good time to go on a jolly like he always does, to escape any scrutiny....

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Ghostship

Comment #9
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Dec 16, 2020 4:54pm Dec 16, 2020 4:54pm

NotBoris
| Joined Jul 2019 | Status: Member | 1495 Comments

Quoting Ghostship

Hidden

Of course my voice do not represent the voice of the British people, it is just but a voice of me, a British! Ironic ain’t it??

Your threat of hanging for treason is as good as the behaviours of the little trumpeters, the other side of the pond. Scattering yet?

Happy trading, unless you are trapped and wanting to vent your anger. You have your views and others are entitled to theirs, so no need for your rhetorical violent threat.

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Posted: Dec 16, 2020 6:47am
Submitted by:
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Category: High Impact Breaking News

Comments: 9 / Views: 7,058