EU Pushes for 'Farage Clause' as Brexit Reset Talks Get Underway
A provision in a draft agreement on agriculture trade is sparking debate over the potential costs of leaving the EU, with critics labeling it the "Farage clause" after Nigel Farage. The EU wants guarantees that if a future UK government reneges on any post-Brexit deal, it will compensate the bloc for the disruption caused.
The proposal, which has been dismissed by UK sources as routine in international trade agreements, would require either side to cover the cost of reinstating border and infrastructure controls if they pull out. This could result in significant financial penalties, potentially running into billions of pounds.
EU diplomats see this provision as a way to ensure the bloc is not left financially exposed should Nigel Farage's Reform party win an election and cancel any UK-EU sanitary and phytosanitary agreement. However, the UK believes it would apply equally to them, forcing the EU to compensate if they backed out of the deal in future.
The "Farage clause" has been criticized by Labour as a desperate attempt by the EU to get concessions. Anand Menon, director of UK in a Changing Europe, warned that the EU is playing hardball, extracting every last concession because it believes the UK needs these agreements more than they do.
As negotiations on the SPS deal begin this month, the topic remains one of the most complicated in the reset package, which also includes restoring the Erasmus program and agreeing on carbon emissions. The EU has allocated significant funds to help its member states cope with the disruption caused by the UK's exit in 2020.
A provision in a draft agreement on agriculture trade is sparking debate over the potential costs of leaving the EU, with critics labeling it the "Farage clause" after Nigel Farage. The EU wants guarantees that if a future UK government reneges on any post-Brexit deal, it will compensate the bloc for the disruption caused.
The proposal, which has been dismissed by UK sources as routine in international trade agreements, would require either side to cover the cost of reinstating border and infrastructure controls if they pull out. This could result in significant financial penalties, potentially running into billions of pounds.
EU diplomats see this provision as a way to ensure the bloc is not left financially exposed should Nigel Farage's Reform party win an election and cancel any UK-EU sanitary and phytosanitary agreement. However, the UK believes it would apply equally to them, forcing the EU to compensate if they backed out of the deal in future.
The "Farage clause" has been criticized by Labour as a desperate attempt by the EU to get concessions. Anand Menon, director of UK in a Changing Europe, warned that the EU is playing hardball, extracting every last concession because it believes the UK needs these agreements more than they do.
As negotiations on the SPS deal begin this month, the topic remains one of the most complicated in the reset package, which also includes restoring the Erasmus program and agreeing on carbon emissions. The EU has allocated significant funds to help its member states cope with the disruption caused by the UK's exit in 2020.