The EU has insisted Boris Johnson will be able to uphold his key demand of “sovereignty” under Brussels’ proposed terms for a Brexit deal.
European Commission president Ursula von der Leyen explained the EU’s stance on the so-called level playing field, which is the key obstacle to a deal, while acknowledging the two sides “remain apart on fundamental issues”.
It came after the prime minister said on Thursday there was a “strong possibility” of no deal and the UK defaulting to World Trade Organisation terms for trade with the EU from January 1, which is predicted to be the most damaging Brexit outcome.
The talks are stuck on the issues of fishing rights and EU demands to impose tariffs on the UK if it does not in future raise standards in areas like the environment in line with Brussels.
Europe sees the so-called level playing field provisions as crucial to ensure fair competition between UK and EU businesses.
An all-night European Council summit spent just eight minutes discussing Brexit, with von der Leyen briefing EU leaders on the state of play.
At a summit press conference on Friday, she insisted that the UK would remain “free” to do what it wants on standards under Brussels’ terms for a deal, and suggested it would be able to similarly take action against the EU for unfair competition.
Von der Leyen said: “I briefed the leaders on the negotiations with the United Kingdom: positions remain apart on fundamental issues.
“On the level playing field we have repeatedly made clear to our UK partners that the principle of fair competition is a precondition to privileged access to the EU market.
“It is the largest single market in the world and it is only fair that competitors to our own enterprises face the same conditions on our own market.
“But this is not to say that we would require the UK to follow us every time we decide to raise our level of ambition, for example in the environmental field.
“They would remain free, sovereign if you wish, to decide what they want to do.
“We would simply adapt the conditions for access to our market accordingly (to) the decision of the United Kingdom, and this would apply vice versa.”
It came after culture secretary Oliver Dowden explained that the UK is not prepared to get a Brexit deal “at any price”.
He strongly criticised the EU’s stance, insisting that Brussels does not make similar level playing field demands of other countries which it has free trade deals with, such as Canada.
“There is no free trade deal in the world, whether that is the EU’s free trade deal with Canada or with Japan, that requires that, as the EU changes its regulations, the other country – in this case the UK – would be required to match them or face consequences,” he told BBC Breakfast.
“That is not a free trade relationship, that is trying to keep the UK within the sphere of influence of the EU.”
He added: “What we will not accept is this ratcheting up that if the EU decides to impose fresh regulations that have nothing to do with us we have to then match them or face the consequences – they don’t demand that of Canada.”