European Union Committee in the #Lords:

When asked whether there will be further negotiations if the next round does not bring more progress, Frost says he expect another round in July and adds ‘they will talk as long as there is constructive discussion’

(thread)

Asked on whether an extension request will be considered Frost states that the govt position is ‘pretty clear and that they won’t ask for an extension’...

Frost has said the government position is pretty clear. "We are not going to ask for an extension and if the EU asks for one we won't agree to it"

‘Businesses will need to be ready for customs declarations’ says Gove as well as ‘customs agents capacity’...

Gove concedes that: ‘The biggest bureaucratic challenge will be to ensure that people are ready for the challenge of being outside the European customs union'

Hmmm...(!)

Frost says UK is talking to the EU Commission about participating in Horizon Europe.

...but point noted that there is no mention of Horizon Europe in the draft legal text updated lately.

'We are talking to the European Commission about Horizon, and other programmes we are interested in participating in...there are a number of areas that still remain to be clarified.'

Participation in Horizon Europe is quite crucial for British universities.

Looks like the mechanisms currently being negotiated would removed British universities' access to Horizon Europe.

"under no conditions would the UK be a recipient to the programme, just a net contributor"

What does the EU propose (state aid aside) beyond non regression in areas of labour and environment?

A: "On labour they are suggesting that there should be non-regression from EU standards; on environnment, they'd like us to establish an independent authority"

(cont...)

(cont...)

"....and on climate they would like us to commit to carbon pricing and to the Paris agreement as an essential element of the agreement"

(sounds like common sense; why would we not want to agree to these things?)

The EU Ratchet clause: ‘it doesn’t require us to move in parallel...but that if we BOTH CHOOSE to move for higher standards, those standards are locked in’

Problems Frost sees with that for UK:
1. Doesn’t seem that easy to define standards in such a simple way;
2. They propose a settlement mechanism which involves the ECJ interpreting areas of eu law in this area
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(note: uncertain here if we have proposed alternate mechanisms)

On Gove saying UK would consider tariffs on some goods if only way to avoid level playing field - how would he choose these tariffs?

Lots of explanation + "there’s precedents obviously and they tend to be in agriculture"

(he means food would become more expensive)

"Do you now agree that no deal with the worlds largest free trade area would mean tariffs and a big step back from free trade?"

Gove isn’t really giving any good answer aside from the fact that the UK would seek FTAs with other countries.
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(obligatory middle-of-thread GIF:)

Peer replies that tariffs would be slapped on UK goods going into EU...Gove says ‘EU producers would be the one to suffer the most’

(*sigh* is this a competition for who hurts the most?)

Frost: "Most free trade agreements are about reducing barriers... this is a rather unusual one as we are coming out of the single market..."
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Yes, quite (*screaming into pillow*)

Frost continues with the old argument: 'ability to control your own trade’ and to have ‘regulatory control over our own rules that will make us nimbler’....

Lord emphasises that fisheries is less than 1% of UK GDP and if making that critical to a deal is sensible?

Frost: ‘I still believe it‘s in the common interest to find an agreement on fisheries and an agreement overall’

Important question asked on a sector crucial to our economy:

How much progress has been made around financial services, particularly on the equivalence assessment which should’ve been easy and should’ve made by the end of June?

(on equivalence for financial services)

Gove: ‘you’re right it should be relatively straight forward... it’s a process for the EU and given the skills and process that they have I would have hoped that access would have been granted’...

Translation: deal not quite that easy.

Side tweet: this analysis of a Lords' select committee is being brought to you by the very best of British combination of Belgian + Indian skills: @Aliceantoineg and @PranMan