Brexit Secretary David Davis warns failing to secure a deal would be ‘disastrous’ for EU businesses

DAVID Davis warned the EU that failure to secure a Brexit deal would be a disaster for its businesses.

The Brexit Secretary said European companies sold more to Britain than China, India, Brazil and Russia combined.

His latest negotiation paper pointed out that exports to the UK were worth £257billion last year, leaving it in “no one’s interest to see disruption and uncertainty”.

It also came with a call for British and European goods already on sale to stay on shop shelves after Brexit.

The proposals are in his department’s latest tranche of position papers which will form the basis for divorce negotiations with Brussels.

Two more negotiations papers were also published to limit post-Brexit upheaval, on cross-border court decisions and confidential documents.

Mr Davis added: “These papers will help give businesses and consumers certainty and confidence in the UK’s status as an economic powerhouse after we have left the EU.

“They also show that as we enter the third round of negotiations, it is clear that our separation from the EU and future relationship are inextricably linked.”

Business leaders welcomed the plans, which they dubbed a “significant improvement” on Brussels’ suggestions that would slap more regulation on both sides of the Channel after the UK’s withdrawal.

Also backing the government’s call for a swift transition agreement to smooth out any changes, the CBI added: “The only way to provide companies with the reassurance they need is through the urgent agreement of interim arrangements.

“Both sides should agree to move talks on to interim arrangements as soon as possible to stem the loss of investment.”

In the paper published on legal arrangement with the EU, ministers call for British and European judges to keep on recognising each other’s decisions after Brexit to also keep business flowing.

Replicating the current cross-border respect for court verdicts is also vital to protect consumers as well as companies across the continent in the future.

The plan will also give reassurance to parents and children as it will include family court decisions.

A UK Government source said: “Close cooperation in this area isn’t just in the interest of the UK citizens living in the EU, it’s in the interest of the 3.2 million EU citizens living here in Britain.

“For example, with more and more families living across borders, we need to make absolutely sure that if and when problems arise, they can be reassured that cross-border laws will apply to them in a fair and sensible way.

A further three more Brexit position papers will be published this week, including a crucial one on how to settle disputes in a free trade agreement without the European Court of Justice dictating terms from Luxembourg any longer.

The tidal wave of paperwork is a bid to “turn the tables” on the EU’s chief negotiator Michel Barnier, who has blamed slow progress so far Britain not coming up with enough detailed proposals.

But Labour and the Lib Dems attacked the proposals for being thin on detail.

Shadow Brexit secretary Sir Keir Starmer said: “It is increasingly clear that the Government are publishing bland, non-committal papers as a smokescreen to mask their failure to make any meaningful progress”.

Downing Street also insisted Theresa May remains “confident” of starting the second phase of Brexit talks this autumn, after an EU leader warned that the process would be delayed.

Slovenian prime minister Miro Cerar suggested the issues in the first stage, a financial settlement, citizens’ rights, and the Irish border, were too complex to solve in time to allow trade talks to begin in October, as hoped for by both sides.

But the PM’s official spokeswoman said: “We are confident that we will have made sufficient progress by October to be able to advance talks to the next phase.

“That is our aim and we are confident that we are working at a pace to be able to get to that point.”
Formal Brexit talks resume for their third round in Brussels next week.