UK opposition leader Jeremy Corbyn says Britain should negotiate a new tariff-free customs deal with the EU after Brexit. His announcement is likely to rouse Conservative critics of Prime Minister May's hard-line stance.
Brexit talks began in June and both sides have been frustrated at the lack of progress. DW has taken a look at key issues being debated in Brussels as the clock ticks toward Britain's scheduled departure in March 2019.
Image: picture-alliance/dpa/o. Hoslet
Two phases
EU leaders agreed to negotiating guidelines during a summit in April 2017 that divided the divorce talks into two phases. Phase I, in which both sides aimed to settle the basic terms of Britain's departure, started in July and ended with an agreement on "sufficient progress" in December. Officials are now holding Phase II negotiations on the post-Brexit relationship between Britain and the EU.
Image: Reuters/File Photo/Y. Herman
The "Brexit Bill"
London agreed to a formula for calculating what it owes in its "divorce bill" to the EU in early December after months of haggling by British officials. The current EU budget expires in 2022 and EU officials have said the divorce bill will cover financial obligations Britain had committed to before triggering article 50. The final bill will reportedly total around £50 billion (€67 billion).
Image: picture-alliance/empics/D. Martinez
Citizens' rights
Both sides agreed in early December that the 3 million EU citizens currently in Britain and the 1.1 million British citizens in the EU keep their residency rights after Brexit. British courts will have immediate jurisdiction over EU citizens living in Britain. But the EU's highest court, the ECJ, can hear cases until 2027 if British judges refer unclear cases to them.
Image: picture-alliance/dpa/B. Smith
The Irish border
Britain and the EU also agreed in December that no border checks between the Republic of Ireland and Northern Ireland would return post-Brexit. How feasible the commitment will be is unclear, as Britain's commitment to leaving the EU Single Market and Customs Union makes it difficult to avoid customs checks at the Irish border.
Image: Reuters/C. Kilcoyne
Transition period
Theresa May envisages a two-year transition period after March 2019. Both sides still have to hash out the details of the transition period in Phase II, including the exact end-date, whether new EU laws passed during the period will apply to Britain, and whether Britain can negotiate its own free trade deals. British officials hope to agree on the terms of the transition by March 2018.
Image: Imago
Trade
May has repeatedly said Britain will leave the European Single Market and the EU Customs Union. Leaving both could disrupt British-EU trade, but allow Britain to negotiate its own free trade deals and restrict EU migration — key demands by pro-Brexit politicians. London has said it wants to negotiate a new EU-UK trade deal during Phase II to minimize trade disruption before March 2019.
Image: Picture alliance/empics/A. Matthews
Immigration
Britain has also vowed to restrict EU migration into Britain after Brexit. However, some British lawmakers are wary that a sharp drop in immigration could lead to shortfalls in key sectors, including health, social care and construction. The EU has warned that Single Market access is out of the question if London decides to restrict the ability of its citizens to live and work in Britain.
Image: picture alliance/PA Wire /S. Parsons
Security
Recent terror attacks across Europe including a string in Britain underline both sides' support for continued security cooperation after March 2019. But access to EU institutions such as Europol and programs such as the European Arrest Warrant require compliance with EU laws. Whether Britain will still be compliant after it leaves is unclear.
A spokesman reiterated the government's position on Monday: "We want to have the freedom to sign our own trade deals and to reach out into the world," he said, adding that Britain would still seek a new "customs partnership" or a "highly streamlined customs arrangement" with the EU.
Foreign Minister Boris Johnson accused Corbyn of cynicism, saying on Twitter that his Brexit policy would "leave UK a colony of the EU — unable to take back control of our borders or our trade policy."
May is seeking to finalize a divorce deal with the EU before Britain leaves the bloc next year. Negotiations about the terms of the split, however, have opened up divisions in the ruling Conservative Party, with a small group calling for a "soft Brexit" and closer economic ties with the EU.
These pro-EU rebels within May's Conservatives will likely team up with Labour when lawmakers vote on the issue in Parliament.
Can Brexit be stopped?
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In his Brexit policy speech, Corbyn warned that free trade deals with China or the United States would not make up for loss of trade with the EU, and urged MPs to prioritize "jobs, rights and living standards."
"I appeal to MPs of all parties to be prepared to put the people's interests before the ideological fantasies," he said.
May is due to set out her own vision for Britain's post-Brexit relationship with the EU in a speech on Friday.
