64 / 169
THE STATE OF THE EUROPEAN UNION
64
grave consequences Brexit would have for the
British people
29
. She openly accepted the fact
that a reduction in trade was inevitable and that
judicial and legislative sovereignty would not be
possible if the UK wished to retain its current
favourable trading status with the EU in key ar-
eas. This was tantamount to an admission on
her part that the politics and economics of
Brexit were not compatible.
May informed her Mansion House audience
that she was eager to forge an agreement on
future relations that ensured broad mutual ac-
cess to markets and fair and open competition,
willing to make a commitment to maintain UK
regulation in alignment with EU regulation go-
ing forward and interested in establishing relia-
ble, transparent mechanisms to verify compli-
ance with commitments and resolve disputes.
The PM stated that she wanted “the broadest
and deepest possible partnership covering more
sectors… than any Free Trade Agreement any-
where in the World” and that such a deal should
be innovative rather than “off the shelf”. In
addition to citing mutual interests, she under-
scored the advantage of both parties starting
out with identical regulatory standards, a parity
she pledged the UK would work to maintain go-
ing forward.
May’s proposal is focused on ensuring that
the EU-UK border is as frictionless as possible.
To this end, she has ruled out the introduction
of tariffs and quotas, supports a comprehensive
system of mutual recognition and pledges to
match EU regulatory standards in areas of trade
of interest to the UK. She recognised in her
Mansion House speech that any parliamentary
decision to diverge from this framework would
29
May, T.:
Speech on our future economic partnership with
the European Union,
Mansion House, London, 2 March
2018.
be taken with the full understanding of its pos-
sible impact on the UK’s Single Market status
and expressed a keen interest in the UK main-
taining a presence in EU agencies critical to the
chemical, pharmaceutical industries and the
European Aviation Security Agency. Regarding
external commercial relations, she envisaged
two options. The first was a customs partner-
ship with a mechanism allowing the UK to apply
its own tariffs and trade policy for goods enter-
ing its market while applying EU tariffs and rules
of origin for goods passing through its territory
en route
to EU countries. The second option
would be a streamlined arrangement based on
a range of agreed-upon measures intended to
minimise frictions to trade. May also stated the
UK would work with the EU to manage shared
fishing stocks sustainably and agreed to recipro-
cal access to fisheries.
The prime minister was in favour of pursuing
a free trade agreement substantially broader in
scope than others currently in vigour. In line
with the UK’s interests as a major exporter of
services, May suggested that new barriers be
introduced only when absolutely necessary in
order to avoid discrimination against foreign
service suppliers and called for mutual recogni-
tion of qualifications and the development of a
mutually agreed-upon labour mobility frame-
work that permitted businesses and self-em-
ployed professionals to offer services on both
sides of the Channel. She also mentioned two
sectors of vital interest to the UK usually given
short shrift in free trade agreements that she
would like to see covered under the pending fu-
ture relationship agreement –broadcasting and
financial services. Other areas in which she
thought cooperation would be possible were en-
ergy, transport, digital technology, law, science,
education and culture. All things considered,
May’s presentation at Mansion House offered a