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UK and EU Announce Brexit Trade Deal. Aired 9:50-11a ET
Aired December 24, 2020 - 09:50 ET
THIS IS A RUSH TRANSCRIPT. THIS COPY MAY NOT BE IN ITS FINAL FORM AND MAY BE UPDATED.
ANNOUNCER: This is CNN breaking news.
RICHARD QUEST, CNN ANCHOR: I'm Richard Quest in New York. We have breaking news to bring you. The UK and the EU have announced a Brexit trade deal. A few moments ago, the British Prime Minister Boris Johnson said in a statement "deal is done." Both sides managed to get past the final sticking point over the UK's fishing waters.
The deadline came and went during hours to get to an agreement before the UK's Brexit transition period, which runs out at the end of the month. CNN's International Diplomatic Editor Nic Robertson is live in London with me. Appropriate Nic, it's you and me doing this a day before on Christmas Eve as we have every last minute of this twisted and fractious deal. So what's the deal, what's been done?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Yes, absolutely Richard. I'll tell you, It's every bit as cold as all those days and nights you spend down here over the past four years as well. So this is what the British government is saying, this is what the British government is saying. This is not an independent analyst read of the deal.
What they're saying is, and I'm going to read it to you because we've only just got this. "This is everything that the British public voted for in 2016." That's the headline that's going -- that's being put across by the government. They say we have taken back control and we all remember how big take back control was for the government on the Brexit issue.
They say we have taken back control of our money, our borders, our laws, our trade, and our fishing waters. Yes, fishing, that stickiest and thorniest of issue, that's in there too. It's a fantastic -- fantastic news for families and businesses across the country. The prime minister says "it goes on to say the deal is the biggest bilateral trade deal signed by either side, covering trade worth $900 billion. The deal guarantees we are no longer in the lunar pole of the EU."
This is the language the prime minister has used to suggest that the European Union was going to continue to sort of have influence and control over British laws, British society. So the prime minister saying that's no longer the case or there will be a points-based -- points-based migration system. But of course migration was one of the big drivers that drove up that
sort of -- the nationalist vote of some of the sort of hardlined brexiteers who believed that breaking away from the European Union could cut down migration.
Remember 2015, floods of refugees, particularly from Syria, that year into Europe, that was a big factor in the Brexit vote as well. So points-based migration system, quickly concluding here, we have delivered a great deal for the entire United Kingdom in record time. This is, by no standards, a relatively quickly, despite all the problems, relatively quickly concluding trade deal of such scope.
QUEST: So Nic -- Nic, all right. WTO terms, if you like, was the very bottom of the rung. Australia terms, as the Prime Minister Boris Johnson called it. Single market access is at the top of the tree and they're clearly not getting that. So where in this is the United Kingdom? How close is it, say, for example, to Canada terms?
ROBERTSON: Richard, we're not going to know this until we get into the -- until we get the text and we can go through it in detail. And I say that quite simply because during the negotiation progress, it's been -- nothing is done until everything is done, so there have been very few leaks about the detail of the substance in this, so it's hard to say.
What we do know is that access to the single market without the UK following rules and regulations stipulated by the EU, full access was never going to be there. We know the Scottish politician has been complaining that Scottish farmers won't be able to sell their seed potatoes to the EU without quota and without tariffs, but the majority of goods will have no quota's and no tariffs.
So we see there that there are instances where this -- where this isn't everything that the government wanted, but it believes it's got enough to sell it. But to answer your specific question, Richard, the dirt -- how much is this different from a complete access to single market and what Canada has? We just don't have the detail yet, Richard.
QUEST: Okay, Cyril, and stay with me obviously Nic Robertson. Cyril is in Paris. What are you hearing from the European side?
CYRIL VANIER, CNN CORRESPONDENT: Well Richard, for the moment we're not hearing from the European side. We're going to be hearing from them momentarily, from Chief European Negotiator Michel Barnier, European Commission Head Ursula von der Leyen. They haven't spoken yet but they will do so shortly.
So Boris Johnson fired the first shot here, which perhaps is not surprising.
[09:55:00]
And for the moment we really can't say whether it is or isn't a win because we haven't seen the details of the deal, as Nic Robertson was telling you. So once Michel Barnier and Ursula von der Leyen speak that is when the deal, which by the way runs to several hundreds of pages perhaps between 1,000 and 2,000 pages, we're not sure. That is when the deal will be published in the official journal and that is when we are finally going to be able lay eyes on it, Richard.
QUEST: OK, so we're certainly flying in the blind, as they say, to a large extent. Cyril, E.U. ambassadors - it's (ph) the first stage E.U. ambassador will be informed about this. They will meet before council then meet. I am assuming Barnier would not be putting anything like this forward if he didn't have everybody on-board.
VANIER: I think that's a reasonable assumption, Richard, especially because of the way the negotiations were conducted. Look, the E.U., say what you want about them, but in this particular negotiation one of their great successes for the European Union is that they presented a united front. And they were a tight knit group. They spoke with only one voice and that was the voice of the negotiator Michel Barnier who then kept his 27 member states on whose behalf he was negotiating apprised of developments even during the toughest times of this negotiation.
So it's reasonable to assume that they all have a pretty good idea of what's in the deal. And that he wouldn't have been able to make that deal if they didn't - if they weren't on-board with it. So I would - I would side -- I would back your assumption, Richard, that the 27 member states will back whatever Barnier presents them with.
QUEST: Can we say the same thing about the British Parliament and Nic Robertson? How realistic is this to get this through Parliament in the week before Christmas and New Year?
NIC ROBERTSON, CNN INTERNATIONAL DIPLOMATIC EDITOR: Parliament has been sort of pretty much put on notice so expect to come back some time next week before the New Year. The Prime Minister has a majority of 80; there will be some descenders (ph) in his back benches. I think that is almost inevitable. The opposition has said that they will support the deal although they will have - because they believe that no - because they believe a deal is better than no deal and no deal for them would be the more chaos at the borders.
So the Prime Minister will have the numbers in short. That's expected. But he will - he will get some backlash for the measure of that and we don't know again until we get the details of the deal. But he will - this will go through Parliament before the deadline at the end of year. That's the firm expectation.
QUEST: Nic, I know we don't - again we don't have that much detail but this issue of the level playing field and the enforcement provisions in the case as the U.K. diverges. That is the naughty sticking point. I mean forget fisheries for the moment, that was more symbolic. The Prime Minister has to be able to come back and say whatever enforcement provision is there still accords with the U.K. taking back sovereignty.
ROBERTS: Yes. I mean that was always the bottom line and that was one of the sort of narratives that came up quite early when we began to understand just how bogged down the negotiations were; sovereignty, sovereignty, sovereignty. So what the Prime Minister was fighting against was the E.U. saying "Well, if you don't give our fisherman the access to the fishing that you say you will and you somehow change that"; even when the terms of the transition of whatever changes coming in the fisheries in seven years time. In seven years time if you don't abide by that then we might put tariffs on something else like your -- motor vehicles. So there was that kind of linkage.
So you know I think what we can expect is that there will be language around arbitration that will try to - try to sort of sort out and separate these issues, these sort of potential interlinking between different industries and manufacturing and farming and fisheries and all these - and all these different things. And also build in a sort of a time gap so that there isn't this automatic - the Britain must follow E.U. regulation within a couple of weeks and there will be a period of analysis and reflection on that to make a decision about which way to go knowing the repercussions.
Because there will be - the E.U. was firm on that on their side, Richard.
QUEST: Cyril, the French were difficult in the latter stage of the negotiations. The Germans sort of played a halfway house. Spain is still grumbling over the question of Gibraltar. The Irish have been terrified at the prospect of borders and disruption of travel. Will they all be able to live with this bearing in mind their idiosyncrasies? I beg --
[10:00:00]
VANIER: Richard, I would say that there's every indication -
QUEST: Beg your pardon, stop there -
(CROSSTALK)
VANIER: -- is -
QUEST: -- stop there, Cyril. Stop there. We're going to Ursula con der Leyen.
(CROSSTALK)
URSULA VON DER LEYEN, EUROPEAN COMMISSION PRESIDENT: (Speaking foreign language)
UNKNOWN: (Translated) So this was an agreement (inaudible) that we had to fight for. We need to avoid major disturbances for passengers, companies after the first of January 2021 and protect European interest. I believe also that this agreement is in the United Kingdom's interest. It will set solid foundations for a new start with a long term friend. And it means that we can finally put Brexit behind up and Europe is continuing to move forward.
In German, the European Union has shown unity over this time. Four hundred and fifty million people, the single biggest market in the world, and we were able to rely on these assets. It's very important in this agreement, line by line, chapter by chapter.
VON DER LEYEN: A single market will be fair and remain so. The E.U. rules and standards will be respected. We have effective tools to react if fair competition is distorted and impacts our trade. Secondly, we will continue cooperating with the U.K. in all areas of mutual interest. For example, in the field of climate change, energy, security and transport; together we still achieve more than we do apart. And thirdly, we have secured five and a half years of full predictability for our fishing (ph) communities and strong tools to incentivize to remain so.
Of course, this whole debate has always been about serenity (ph). But we should capture the sound bytes and ask ourselves what serenity actually means in the 21st Century. For me, it is about being able to seamlessly do work, travel, study and do business in 27 countries. It is about pulling our strength and speaking together in a world full of great powers. And in the time of crisis it is about pulling each other up instead of trying to get back to your feet alone. And the European Union shows how this works in practice. And no deal
in the world can change reality or (ph) gravity in today's economy and today's world. We are one of the giants.
(Speaking foreign language)
UNKNOWN: (Translated) Is well prepared for Brexit. Obviously we're aware of the fact that this agreement isn't going to resolve all problems. And we've been working closely with authorities and business in Europe to ensure that they are well prepared. In our new budget there is 5 billsion Euro ring fenced (ph) to help people and companies that are very much affected by Brexit.
VON DER LEYEN: Time to turn the page and look to the future. The United Kingdom is a third country. But it remains a trusted partner. We are long standing allies. We share the same value and interest whether it be the COP26 26 Summit in Glasgow or the upcoming U.K. G7 and Italian G20 Presidencies. The European Union and the United Kingdom will stand shoulder to shoulder to deliver on our common global goals.
(Speaking foreign language)
UNKNOWN: I would like to thank our chief negotiator, Michel Barnier and his team and Stephanie Rizzo (ph) for their tireless efforts, their endurance, their professionalism.
VON DER LEYEN: I also want to thank David Frost and Tim Barrow for having been tough but fair negotiating partners.
[10:05:00]
And I'm grateful to all of our member states and the European Parliament for their trust and their support.
I will now convene the college, and ladies and gentlemen, at the end of a successful negotiations journey I normally feel joy, but today I only feel quite satisfaction and frankly speaking, relief. I know this is a difficult day for some and to our friends in the
United Kingdom I want to say, parting is such sweet sorrow. But to use a line from T.S. Eliot, what we call the beginning is often the end and to make an end is to make a beginning. So, all the Europeans I say it is time to leave Brexit behind, our future is made in Europe. Thank you so much.
UNKNOWN: Thanks very much President. Now allow me to give the floor to our Chief Negotiator Michel Barnier.
MICHEL BARNIER, EU CHIEF BREXIT NEGOTIATOR: Thank you Madam President (inaudible). The clock is no longer ticking. After four years of collective effort and EU unity to preserve peace and stability on the Island of Ireland, to protect the citizens and the Single (ph) Market, to build a new partnership with the U.K.
Thank you all, thank you all. This is the work of so many women and men here in the commission and under your leadership Madam President, all the services and in particular the E.U. Task Force for Brexit, Clara Martinez and Paulina Dejmek and all the team, and in the member states the Counsel, the European Parliament. I also pay tribute also to the E.U.-U.K. Negotiating Team and the Chief Negotiator David Frost and his deputies.
This process has engaged so many citizens, businesses, stakeholders and obviously so many journalists (ph). Thank you for your patience and for your attention. Today is a day of relief but tensioned (ph) by some sadness as we compare what came before with what lies ahead.
(Through translator): The United Kingdom has chosen to leave European Union and the Single Market, to renounce the benefits and advantages enjoyed by member states. Our agreement does not reproduce these rights and benefits.
And therefore, despite this agreement, there will be real changes in a few days from now as of first of January, real changes for many citizens and many businesses, and that is the result of Brexit.
But, we have also built a new partnership for the future around four pillars. Firstly, a free-trade agreement, an ambitious and fair one, free and fair trade without tariffs or a quote (ph) and at the heart of this agreement there will be new rules of the economic new economic game rules, the level playing field as we call it, which for the European Union will be the start of a new generation of free trade agreements.
Secondly, and economic and social partnership whose scope will be unprecedented. It will cover aviation, road transport, energy, combating climate change, fisheries, where we have achieved reciprocal access to waters and to resources and we see a new distribution of fishing quotas and fishing opportunities which has been directly agreed as is only natural between the president and the European Commissioner Ursula von der Leyen and Prime Minister Johnson.
With taking account of Britain's new status as an independent coastal state that is a state which will no longer be part of the common fisheries policy just a few days from now. This agreement will require efforts, I know. The European Union will support its fishermen and women and will accompany them and that is out commitment.
[10:10:00]
Partnership also includes cooperation in the field of research and innovation, nuclear safety, space in the framework of EU programs. And in this field our partnership will also include a nondiscrimination clause to concern EU citizens which will apply to visas, to services and to coordinating social security.
And on this point, I have just two regrets in terms of our societal corporation. Firstly, the British government decided not to participate in the Erasmus exchange Programme. And secondly, the level of ambition in terms of mobility of citizens is not in line with our historical ties but that again is a choice of the British government.
The third pillar of our agreement concerns the security of our citizens and we've always said that our security that of our citizens is not up for grabs. And combating in terrorism and crime requires close cooperation between the European Union and this great country the United Kingdom.
We will continue to work together in eight main fields and this will entail two preconditions, firstly respecting fundamental rights and respecting personal data.
And in this respect too in a very uncertain and unstable world in which we now find ourselves we regret the fact that the British government has not -- has chosen not to -- at least for the time being has chosen not to agree -- reach an agreement on foreign policy defense and development.
And then finally, in regards the fourth pillar the governance of this agreement it is based on political dialogue and consultation.
A binding mechanism for dispute settlement and credible implementation of our legal orders with the -- with provisions for sanctions when necessary, including unilateral sanctions which can be imposed quickly and effectively where necessary.
As our president -- as the president has said, the proposal will be put to the European Council bringing together the 27 governments and the European parliament.
Over four and a half years, we have worked together to build this agreement stage by stage, firstly the withdrawn agreement which enabled us to stabilize peace and consolidate peace in northern Ireland to protect citizen rights, to resolve financial issues.
And then in full transparency with mutual respect and in the spirit of dialect we have continued working now for nine months which is a very short time span to reach this partnership agreement for the future which is unprecedented in terms of its scope and its complexity. Over these four and a half years, the European Union has shown unity. That is its strength, unity and solidarity between all member states and with the European parliament. It has been a great honor for me to be part of this European unit.
UNKNOWN (through translator): Thank you very much, Mr. Barnier. We can now take some questions. Could you kindly raise your hands in the system, as you know, if you wish to put (ph) a question. I see that Derek Barrett (ph) is first. So, let me give the floor to Derek (ph) of (inaudible).
UNKNOWN: (Speaking in foreign language).
UNKNOWN (through translator): Good afternoon. Can you hear me? Yes, everything's fine. Thank you. Go ahead.
UNKNOWN: (Speaking in foreign language).
UNKNOWN (through translator): Yes, thank you very much, sir.
UNKNOWN (through translator): And good afternoon to you, president and Michel Barnier. Now, what confidence do you have in the U.K.'s capacity to respect this agreement given their behavior in the past?
VON DER LEYEN: We have already built in the withdrawn agreement strong measures in case that the withdrawn agreement is not being applied properly. The infringement procedure for example that we started and the same mechanisms are in this agreement that we have strong measures that can be taken if one party does not play by the rules.
So, starting from rebalancing mechanisms that are built in with dispute settlement mechanism to review clauses and an overall review for example after four years to see whether both sides play by the rules, that the level playing field is level indeed and there's the commitment to -- to follow whatever has been agreed in this -- in this deal.
[10:15:00[
So, from the experience we've had, we built in safeguards that are necessary to make sure that there's a strong incentive for both sides to stick to what they have agreed to.
UNKNOWN: Thank you very much. We'll now give the floor to Verna from (inaudible). Verna, are you there?
So, we are waiting for Verna to get connected.
VERNA FRITZ, SENIOR PUBLIC SECTOR SPECIALIST WORLD BANK: Yes, can you hear me now.
UNKNOWN: Yes. Yes, Verna, go ahead. Yes, Verna, go ahead.
FRITZ: Great. Excellent. Thank you very much for the question and good afternoon to the president and Mr. Barnier. Given the extreme time pressure toward the end of these negotiation
and the deadline being only seven days away, are you confident that you really safeguarded all the interests of the Union and of its member states, or did you have to give in to British demands just to avoid disaster a week from now? Thank you very much.
VON DER LEYEN: We had a very strong negotiating position. Indeed you're right; the time was very, very short. At the beginning of the year we have already said that very clearly that for such a comprehensive agreement, 12 months are really short, really short and on tope came COVID. This did not make the negotiations more easy and therefore it is outstanding what the negotiating team has done and achieved in only 12 months. That is one part.
And our negotiating position was as strong because it was the European Union who said very clear if the United Kingdom wants access to the Single Market, the largest single market in the world without quota and without tariffs, then they are as a sovereign country free to decide whether they play by the rules like every other company in the Single Market too. This is a level playing field. If they do not want to follow the rules then there will be quote, tariffs, so there is a price to pay for that.
And as we knew, in any case, if there would have been a hard Brexit it would not have been good for both sides, but it would have hit the United Kingdom harder than the European Union with all its might of 450 million citizens. And therefore from a position of strength we were able to come forward with the most comprehensive agreement we've ever had.
This agreement will write history. If you look at the clear composition of rules that are very distinct, to make sure that there's fair play on both sides, that is a very clear if you want to exit the Single Market you have to abide to the rules all the other ones are abiding to. And in the fishery field I think we made a huge step forward and got a very good agreement, so this shows that from a position of strength you can achieve a lot.
UNKNOWN: Thank you very much. President, I know that you have to go and inform the college. There is interest for additional questions, but we have technical briefing where all the questions will be addressed.
So, thank you so much. Thank you so much for joining us in the European Commission's press room for this press conference and stay tuned for the technical briefing off the record which will follow in a few minutes.
(END VIDEO CLIP)
QUEST: Well there we are. Nic Robertson and Cyril Vanier both are still with me. Let me just recap first of all what we heard. The President of the Commission Ursula von der Leyen described it as a solid foundation for a new start with a long-term friend. But, I think the quote of the day goes to Michel Banier, the clock is no longer ticking he said. And von der Leyen just said then, this agreement will rewrite history.
Time and again both of them said that this agreement between the E.U. and the U.K. was bigger, more expansive, more detailed than anything that they have come before and Banier implied -- didn't imply, he said, that this would become the model for third country agreements in the future. A time to turn the page and look to the future. So, that's the hyperbole if you like about this arrangement and this new deal. Now, let's get to the details.
[10:20:00]
Nic Robertson, we haven't yet heard and I'm waiting to be told when Boris Johnson will speak but you heard von der Leyen, you heard Barnier, what did you make?
ROBERTSON: Yes, I was struck by what Ursula von der Leyen was saying at the end because obviously the British narrative will be different. She said that we've been able to get a good deal because we came from a position of strength because if there had been no deal that would have been worse for the UK and I think as well, one of the details that really struck me, again we've said, "the devil will be in the detail," and just before she was speaking you and I were discussing this interlinked issue of you know if Britain transgresses on one issue, how will the EU retaliate?
And the issue official is being linked into that and it was very, very instructive when Ursula von der Leyen said. But I think this is a sensitive issue for the European Union on future just thinking also she talked about this 4 billion Euro being made available and that they would work -- they would continue to work with EU fisherman that they would go through this with them.
So, it gives you the impression that for the EU they've lost something or this is going to hurt the deal on fishers but she said this and this is -- this is the quote that I'd like -- that I'd like to run to you here Richard and that was you know "we have five and a half years of predictability for EU fisherman," remember a week ago she said "we must have predictability for our fisherman, we are five and a half years of predictability for our fisherman and strong incentives to keep it that way."
So, I think what she is telling us there that the time period for a transition of change over the fisherman's (ph) issue is five and half years but if the UK doesn't keep its word and does what it unilaterally said it wanted...
QUEST: Right, but...
ROBERTSON: ...for example which was have the full access, that there will be penalties at play. That's how those things are linked. So, the question you'd asked before, is there linkage? That is clearly there, there are strong incentives she said.
QUEST: Right, but that five and a half years was pretty much splitting the difference in a sense between what the EU wanted (inaudible)...
ROBERTSON: That's the incentives.
QUEST: Right...
ROBERTSON: It's the incentives here Richard, yes.
QUEST: Right, but the incentives, this talks of von der Leyen about binding mechanisms. It was the fourth pillar of what von der Leyen was talking about, binding mechanisms, credible ways of dealing with this. What are those binding mechanisms? Because that's the nut that's sort of to be cracked on the issue of level playing field. Which again both of them referred to at the end when they said this level playing field is now of the UK agreement will become the norm.
VANIER: Yes and Ursula von der Leyen, the EU Commission Chief said we need to ensure that the level playing field is indeed level and this deal does that. So, while we don't know the details, I know you know that, while we don't know the details, we know the broad outlines and we certainly got a sense from what Michel Barnier and Ursula von der Leyen were saying that of the broad outline.
Which is if at some point either party does not play by the rules, for instance does not respect the same standards of production or the same standards in terms of labor laws, environmental standards, well then there will be consequences and by consequences they're more than likely mean that tariffs would then snap back or be imposed upon those economic areas or those industries or those products or businesses that do not respect the standards that are outlined in the deal.
So, the -- the -- the whole idea of this mechanism has been that if you respect the standards that we lay out in the deal and by in large that means that the UK respects the EU's production and labor law standards, then you will be able to trade without quotas and tariffs. However, if you do not either now or later in the future, whether it's on a whole industry or just one small business, then tariffs or some kind of punishment, financial punishment will apply for that economic area where the standards, EU standards are not applied.
QUEST: Right, but I -- I just want to talk back to Nic because on that issue, those -- let me just remind you as actually before we go further. Barnier talked about four areas in which he said this agreement covered. It covered the Free Trade Agreement, the Economic and Social Partnership Security of Political Dialogue but on this question of, Nic Robertson, of securities that the EU regretted that the UK would not involve itself in discussions on no common foreign policy or defense.
[10:25:00]
That was just being cheeky. I mean, you know, the EU has spent -- the UK has spent their last 40 years trying to avoid a common forward on that. That was never going to happen.
ROBERTSON: No, the UK has always been opposed to that and that's also sort of been perhaps one of the deeper reasons, the more philosophical reasons, that Britain didn't want to be a member of the European Union, but there are economic consequences here. I mean, I give you a for example, one of the things that NATO is doing
to put itself on a par to give it the military -- have to remember, Donald Trump criticized NATO for so long for not stepping up, not paying its way forward.
Well, one of the rationalizations NATO is doing is looking at its defense spending and one of the ways to rationalize defense spending is to work across European countries and come up with a common tank like the United States has or a common fighter aircraft like the United States has.
So going forward, if the UK isn't part of a common defense policy, it may find itself to be a member -- to continue to be an effective member of NATO, being influenced and hurt, not being able to sell its weapon systems as readily around the world because there will be a stronger combined defense mechanism procurement, an industrial process -- an industrial build mechanism inside the European Union.
So these decisions will have consequences going forward. So while Barnier may have been getting a final dig, there are some hard realities here.
QUEST: Now let's join the Prime Minister, Boris Johnson.
(BEGIN VIDEO CLIP)
BORIS JOHNSON, UNITED KINGDOM'S PRIME MINISTER: It's four and a half years since the British people voted to take back control of their money, their borders, their laws and their waters and to leave the European Union. And earlier this year, we fulfilled that promise in that we left on January the 31st with that oven-ready deal.
Since that time, we've been getting on with our agenda and acting the points-based integration system that you voted for and that will come into force on January the 1st, doing free trade deals with 58 countries around the world and preparing the new relationship with the EU.
And there have been plenty of people who have told us that the challenges of the COVID pandemic have made this work impossible and that we should extend the transition period and incur, yet, more delay and I rejected that approach precisely because beating COVID is our number one national priority and I wanted to end any extra uncertainty and to give this country the best possible chance of bouncing back strongly next year.
And so I'm very pleased to tell you this afternoon that we have completed the biggest trade deal yet, worth 660 billion euro a year, a comprehensive Canada-style free trade deal between the UK and the EU. A deal that will protect jobs across this country. A deal that will allow goods, UK goods and components, to be sold without tariffs and without quotas in the EU market.
A deal which will, if anything, allow our companies and our exporters to do even more business with our European friends, and yet which achieves something that the people of this country instinctively knew was doable but which they were told was impossible.
We've taken back control of our laws and our destiny. We've taken back control of every jot and tiddle of our regulation in a way that is complete and unfettered. From January the 1st, we are outside the customs union and outside the single market. British laws will be made solely by the British parliament, interpreted by UK judges sitting in UK courts and the jurisdiction of the European court of justice will come to an end.
We will be able to set our own standards, to innovate in the way that we want, to originate new frame works for the sectors in which this country leads the world, from biosciences to financial services, artificial intelligence and beyond. We'll be able to decide how and where we're going to stimulate new jobs and new hope with free ports, new green industrial zones.
We will be able to cherish our landscape and environment in the way we choose, backing our farmers, backing British food and agricultural production. And for the first time since 1973, we will be an independent coastal state with full control of our waters.
With the UK's share of fish in our waters, rising substantially from roughly half today to closer to two-thirds in five and half years time after which there is no theoretical limit beyond those placed by science or conversation on the quantity of (inaudible) fish that we can fish in our waters and to get ready for those - for that moment. Those fishing communities will be helped with a big 100 million euro program to modernize their fleets and the fish processing industry.
And I want to stress that although of course the arguments with our European friends and partners were sometimes fierce this is I believe a good deal for the whole of Europe. And for our friends and partners, as well, because it will not be a ban for (ph) (inaudible) remind you for the E.U. to have a prosperous and dynamic and contented U.K. on your doorstep. And it will be a good thing. It will drive jobs and prosperity across the whole continent. And I don't think it would be a bad thing, if we in the U.K., do things differently or take a different approach to legislation because in so many ways our basic goals are the same.
And in the context of this giant free-trade zone that we're jointly creating, the stimulus of regulatory competition will (ph) I think benefit us both. And if one side believes it's somehow being unfairly undercut by the other than subject to independent third party arbitration and provided the measures are proportionate; we can, either of us, decide as sovereign equals to protect our consumers or businesses. But this treaty explicitly envisions (ph) that such actions should only happen infrequently.
And the concepts of uniformity and harmonization are banished in favor of mutual respect and mutual recognition and free-trade. And for squaring that circle, for finding the philosopher's stone that's enabled us to do this; I want to thank President von der Leyen - Ursula von der Leyen of the European Commission; our brilliant negotiators led by Lord Frost and Michel Barnier on the E.U. side as Stephanie Riso as well Oliver Lewis, Tim Barrow, Lindsay Appleby, many others. Their work will be available for scrutiny followed by Parliamentary vote; I hope on December 30.
This agreement, this deal, above all, means certainty. It means certainty for the aviation industry and the haulers (ph) who have suffered so much in the COVID pandemic. It means certainty for the police, the border forces, the security services; all those we rely on across Europe to keep us all safe. It means certainty for our scientists; who will be able to work together and continue to work together on great collective projects; because although we want in the U.K. to be a science superpower we also want to be a collaborative science superpower.
And above all, it means certainty for business; from financial services to our world leading manufacturers, our car industry. A certainty for all those who are working in high skill jobs and in firms and factories across the whole - the whole country because there will be no palisade of tariffs on January 1. And there'll be no non- tariffs barriers to trade. Instead there will be a giant free-trade zone of which we will once be a member and at the same time be able to do our own free-trade deals as one U.K. whole and entire England, Northern Ireland, Scotland, Wales together. And I should stress this deal was done by a huge negotiating team from every part of the U.K. And it will benefit every part of our United Kingdom. Helping to unite and level up across the country.
And so I say again directly to our E.U. friends and partners; I think this deal means a new stability and a new certainty in what has sometimes been a fractious (ph) and difficult relationship. We will be your friend, your ally, your supporter and indeed never let it be forgotten your number one market. Because although we have let the E.U.; this country will remain culturally, emotionally, historically, strategically, geologically attached to Europe.
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Not least, of course, through the 4 million E.U. nationals of who have requested to settle in the U.K. over the last four years and who make an enormous contribution to our country and to our lives.
And I say to all of you at home at the end of this toughest of years, that our focus in the weeks ahead is, of course, on defeating the -- the pandemic and on beating coronavirus and rebuilding our economy and delivering jobs across the country.
And I'm utterly confident that we can and will do it. We've -- by today we've vaccinated almost 800,000 people and we've also today resolved a question that has bedeviled our politics for decades.
And it is up to us all together as a newly and truly independent nation to realize the immensity of this moment and to make the most of it. Happy Christmas to you all. That's the good news from Brussels. Now for the Spriets -- actually it's now to the media.
Let's go -- let's go to the media, who I think we've got Laura Kuenssberg. Over to you Laura.
LAURA KUENSSBERG, BBC NEWS POLITICAL EDITOR: Thank you very much Prime Minster. We're yet to see the text of this deal, which we understand runs to some 2,000 pages.
You've presumably had the benefit of pouring over every word or maybe perhaps not every single word, but can you tell you the public honestly where did the U.K. give the most ground and where did the E.U. compromise the most do you think?
JOHNSON: Thanks Laura. Well actually it's only about 500 pages and I think you -- and it's readily intelligible I think. I think the -- it would be fair to say that we wanted -- we wanted to make sure, for instance, that we got access to -- got complete control of our fisheries from the get-go and that's just to -- to say we had annual negotiations on fisheries within the shortest possible delay.
The E.U. began with, I think, wanting a transition period of 14 years, we wanted 3 years, we've ended up at 5 years. I think that was a reasonable -- a reasonable transition period and I can assure a great fish fanatics in this country we will, as a result of this deal, be able to catch and eat quite prodigious quantities of extra fish.
So, that's why we're going to have to make these investments in the -- in the fishing sector.
Thanks very much Laura. Let's go to -- to Robert Peston of ITV. Sorry Robert, you need to unmute. You need to unmute Robert.
ROBERT PESTON, ITV POLITICAL EDITOR: Yes. Prime Minister, you said all along you wanted a Canada style deal, but what you've agreed means that we, in the U.K., have to follow E.U. rules on subsidies, on tax, on worker's rights, on the environment or potentially incur the imposition of tariffs. That's right, isn't it?
I mean, we've just heard Ursula von der Leyen say that she got her level playing field, which you've explicitly rejected all the way through. You also just said there would be no non-tariff barriers. Again, that's not right.
From January 1, as a result of leaving the Customs Union and Michael Garber's (ph) been warning about this week in, week out for months. There is a ton of new bureaucracy on British business, lots of new non-tariff barriers. It's not to say the deal is a bad deal, but you're not selling it correctly are you? You're misselling it.
JOHNSON: Well Robert, I'm going to respectfully disagree with you, because there is indeed a clause in the -- in the deal which is nothing like as -- as damaging as it -- as it was and is in my view neutralized, which says that if either country feel that the other one is in some way undercutting them or -- or dumping in -- in some way, then subject to arbitration.
And provided the measure is proportionate, and that -- I mean independent arbitration, not arbitration by the European Court of Justice, but subject to an independent panel, they can if they really choose put on tariffs to -- to protect their -- their consumers and their -- and their businesses.
And to give you an example of the kind of thing where that might occur.
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For instance, in the U.K. we want to do -- go further around the more welfare standards and it might be that we do things for instance on how you rear pigs banning side crates and so on that would incur extra costs for our pig farmers.
And it might be that bacon coming from elsewhere in the -- from the EU was at risk of they're full of under cutters. We might under those circumstances consider imposing tariffs. I think it's highly unlikely but we might consider it. It would have to be subject to arbitration.
It would have to be proportionate according to the arbitrator. And under no circumstances would we be in any way constrained legally or otherwise by anything that the EU did or chose to do themselves no furthermore would there be any role for the European Court Of Justice.
And for people at home who have zoned out while I've been talking about this let me tell you this is a very, very long day's march from where we were a few years ago.
You will remember, Robert, when we were talking about basically having a common rulebook with the EU and having dynamic alignment with EU law so that the U.K. was forced to keep step. And that has gone from this treaty and so far as the EU wanted it and there is no role for the European Court of Justice, whatever.
So, I think it's a great treaty. And as to your point about non-tariff barriers, yes, I think it's important to stress what I'm talking about is barriers on the grounds of your clients won't work in our country therefore they are banned or whatever that kind of technical barriers to trade.
And there's a lot in their treaty to try to reduce all that kind of thing, make sure that doesn't. That's a good thing. That's a good thing for businesses and consumers. In that sense it's a great free trade deal.
But I must stress to people getting ready for January the 1 that there will be change. So people will need their -- get on the (inaudible) U.K. website. Exporters will need their (inaudible) forms and everything else. People should be aware of the change that is coming.
But there's also an opportunity because for British exporters now the whole world will be treated the same for export purposes and I think that would actually galvanize our exporters to think much more positively and dynamically about the opportunities that they have.
So, I must respectfully disagree with both the points that you made. This is a jumbo Canada style free trade deal of exactly the kind that I think this country needs.
And it -- and as I say I believe it resolves a longstanding and very, very difficult problem. People said you couldn't be part of the -- of a free trade zone with the EU without being obliged to follow EU laws. If you remember people were.
I think there was a -- I think we were told we couldn't have our cake and eat it and that kind of thing. I'm not going to claim that this is a (inaudible) treaty, Robert. But it's -- but it is I believe what the country needs at this time and the right way forward for the U.K. Let's go to Sam Coates of Sky.
SAM COATES, SKY NEWS JOURNALIST: Prime Minister, you say this is an unprecedented deal (inaudible) all your red lines and promises to the country.
Can people trust that life will be better as a result of this deal that there won't be any disruption even in the short-term? And can you guarantee the government will end up reopening elements of the new relationship in the years to come?
JOHNSON: Well, Sam, I mean really good questions. I mean short-term, yes, as I said just now there are things we have to get right. Processes that maybe people have to do that they need to be aware of and I'm going to say that point really is worth reinforcing.
I do believe that the freedoms that this treaty wins us basically a new independence from the EU are worth having. But -- and so, free ports, free trade deals, being able to do as I say to look after your livestock differently, improving your landscape in a different way, doing all sorts of things differently.
Regulating financial services differently, chemicals, all sorts of things where we want -- we may want to do things differently and better. But I would just say to people watching this -- and I'm sorry for disturbing Cars 3 (ph) by the way.
To people watching this, I would say its one thing to get freedom. Winning freedom is a fantastic thing and...
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JOHNSON: I'm sorry for disturbing Cars 3 by the way, I'll just say to people watching this, I would say it's one thing to get freedom, winning freedom is a fantastic thing and that -- this is an important element of what we have done, but it's how we use it, how we make the most of it, that's what's going to matter in the months and years to come.
I have no doubt that we can do fantastic things with this treaty if we -- with this new relationship, which I think will be stable and prosperous for both sides. Let's go to Tom Newton Dunn of Times Radio.
TOM NEWTON DUNN, TIMES RADIO BROADCAST JOURNALIST: Good afternoon, Prime Minister and thank you. A couple of quick questions, if you don't mind. Every deal means both sides have to compromise.
Do you accept that you have compromised, throughout the last 11 months, particularly perhaps the 11 days, from perhaps your earlier slightly absolutist positions, perhaps that was a negotiating employee, nut compromise is not a dirty word, do you agree with that?
Secondly, can you address services because I haven't heard you say much about that, 80%, of course, of the UK economy you say some British companies will do more trade with the EU because of this deal. Will the British service sector, especially the financial services sector, will they be able to do more trade or less trade?
JOHNSON: Well, there's a -- there's a -- first of all, on the compromise point, compromise isn't a dirty word and unquestionably there are things that we've done to help our friends and partners to move things forward. I mentioned, I think, to Laura where we got to on fish. We started out wanting a very short transition period of three years, they wanted a much longer one of 14 years.
We've compromised on that to five and a half. And on, you know, sort of the vital services sector, yes, of course, they will -- they feature in this -- in this deal quite rightly. In fact, there is some good language about equivalence for financial services, perhaps not as much as we would have liked, but it is nonetheless, you know, going to enable our dynamic city of London to get on and prosper as never before.
There's some good stuff about barristers, listers, lawyers being able to practice around the European Union. We will be able to continue to have massive and growing economic interpenetration without the need for -- what I've always talked about, this lunar pull of EU law, this -- and as I say this is -- this is something that I think can benefit people on both sides of the channel.
The healthy, dynamic, productive, happy, stable relationship. That's what we're aiming for. Let's go to George Parker of the FT.
GEORGE PARKER, FINANCIAL TIMES JOURNALIST: Thank you, Prime Minister. You mentioned the change that will happen at the border in any event on January the 1st. I just wondered if there was anything in this deal where the two sides have agreed to introduce some sort of flexibility at the border to make sure we don't have chaos in Dover and Calais (ph) on January the 1st.
A second more general point, sir you and I used to be reporters in Brussels and we covered the sort of psycho drama of British EU relations for a number of decades. Nigel Farage said today that the war is over. I just wondered if you saw it in those terms?
JOHNSON: No, I think the -- first of all, on the border measures to -- there are all sorts of things in the treaty that what you will recognize by trusted trader, schemes and special measures on sanitary and fighter (ph), sanitary recognition and steps to make sure that, you know, things flow as smoothly as we possibly can.
Though, again, I stress that there will be things that people have to do. Look, I mean, one of the great -- the EU was an -- was and is an extraordinary concept and it was born out of the agony of the second World War, founded by idealistic people in France and Germany and Italy who never wanted those countries to go to war with each other again and other countries, Belgium, Holland and others, and in many ways it's an -- it was and is a very noble enterprise.
So I don't recognize that the kind of language that you -- that you talk of. I think that the UK's own relationship was always difficult. We always found some of the language about ever closer union, the idea of this political union, this very dense idea of this ideology of endless integration, we found quite hard, George.
And I think, you know, as a fellow Brussels reporter, you will remember that there was -- there was quite a lot of friction involved.
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I think that what we've got here is the basis of a new long term friendship and partnership that basically stabilizes that relationship. And so far as the U.K. need to be and always must be a great European power, always must be a great European power. We're (ph) there outside the main body of the - of the E.U. but we're there as a friend and as a supporter. As a flying buttress, if you like. That to make sure, as we have done so many times in the last couple of hundred years, that we're able to lend our voice when it's - when it's needed and to be of value to our European friends and partners in a strategic way. And that's what the U.K. will obviously continue to do.
But I think the - the - the very dense program of integration wasn't right for the - for the U.K. and that's why it was right to take back control in the way that we - that we have. And I think that this deal - this deal expresses what the people of the country voted for in 2016. And I think there was a wisdom in what they decided and I think that we'll be able to go forward on this basis.
Let's go to Gordon Rayner of "The Telegraph".
GORDON RAYNER, THE TELEGRAPH, JOURNALIST: Thank you, Prime Minister and Merry Christmas for tomorrow.
JOHNSON: Merry Christmas.
RAYNER: Could I just ask; probably half the people watching this right now would have voted to remain in the referendum in 2016. Do you have a particular message for them? People today are tweeting that this a bad deal, that it's not what they - what they wanted. They would rather have stayed in. What's your message to them?
And just secondly, could I also ask you (inaudible) day on COVID, you mentioned COVID earlier, can you rule out another national lockdown after Christmas?
JOHNSON: Gordon, thanks. And I think my message to everybody on both sides of the divide is I - that argument in 2016 is I really think it's now a long time behind us. And I think most people, that I talk to, which ever way they were inclined to vote back then, just want it settled and want us to move on. And I think this gives us the platform, the foundation for a really prosperous new relationship. And I would be very excited now by this deal.
This European question has been going on for decades. Exactly what relationship we should have. This is a great new free-trade deal, a trading relationship and partnership that I think will bring prosperity to both sides of the channel.
And on coronavirus and the struggle there; obviously we face a very considerable new pressure particularly from the new variant and the speed with which that's been - that's been spreading. We believe that we're going to have to get through this tough period now with, as I say - as I said many times, very tough restriction, with tough tiering (ph) and you'll have been seen what's been announced the last day or so about that. And as much as I regret that; I do think it is necessary for us to grip this virus now to stop it running out of control in January.
Because we need to buy ourselves time to get the vaccine into as many arms of the elderly and vulnerable as we can. And that is the - that is the real way in which we will defeat the virus. So it's tough tiering (ph), community testing and rolling out the vaccine. And we're going to continue with that approach. And I know that it's been very, very tough over the last few weeks. And I must tell people that we'll continue to be difficult not least but basically because of the - of the speed with which the new variant is spreading.
But the vaccine is going into people's arms and there really is now, I think, a hope - a certainty that we will have it - we will have it defeated, as I say, by the spring. Or (ph) that's certainly what the scientist still believe and they're still - they're still confident of that.
So, thanks, very much, Gordon. Let's go to Harry Cole of "The Sun".
HARRY COLE, THE SUN JOURNALIST: Thank you, Prime Minister. Can you give us some more detail about some new security arrangements with the E.U.? Are we going to be as safe next week in you -- under your new security partnership as we are today given that Brussels (ph) are saying that they're going to lock us out of live E.U. databases? And given you've locked us all up, how will you recommend we celebrate leaving the E.U. next week?
[10:55:00]
JOHNSON: Well, Harry, look I leave your manner of celebration entirely to -- to you and to individual tastes. I wouldn't -- I wouldn't want -- I mean, we've -- I think we've done quite enough
But, on -- on security and police cooperation I'm, you know, absolutely confident this is a -- a deal that protects our police cooperation and protects our ability to catch criminals and to share intelligence across the European continent in the way that we have done for -- for many years. So, I -- I don't think people should have fears on that score or indeed on any score.
Let's go to Heather Stewart of the Guardian.
HEATHER STEWART, POLITICAL EDITOR OF THE GUARDIAN: Hello Prime Minister. It -- Michel Banier said today that we decided to leave the Erasmus Exchange scheme which sent thousands to students to E.U. countries every year. I wonder what you say to young people who feel as though opportunities to discover the continent on our doorstep by living there or studying there working there are being taken away from them?
And secondly, just do you have a message for Keir Starmer who will have to decide in the coming hours and days how to whip (ph) labor and peace, whether they should support your deal?
JOHNSON: Right. Heather, well look on the -- on -- on Erasmus, it was a tough decision. The issue really was that, as you know, the U.K. is a massive net contributor to the continent's higher education economy because over the last decades we've had so many E.U. nationals which we've -- it's been a wonderful thing, but our arrangements basically mean that financially the U.K. (inaudible) more or less looses out on the -- on the -- on the deal. Erasmus was also extremely expensive.
So, what we're doing is producing a -- a U.K. scheme for students to go around the world. It will be called the Children Scheme (ph) and it will -- so -- so students will have the opportunity to (inaudible), so the students will have the opportunity not just to go to European universities, but to go to the better universities in the world, because we want our -- our young people to experience the immense intellectual stimulation of Europe, but also of the -- of the whole world. And as for, I think you -- you asked about which way should the opposition vote on this. Well, it's perfectly obvious, Heather, the opposition to vote this excellent deal and -- and I would strongly encourage everybody to do the same.
Thank you very much everybody. Happy Christmas to you all. Thank you.
QUEST: All right, so Boris Johnson speaking for about 25 minutes there. He called it a Canada a jumbo-sized Canada style deal. The free trade agreement, all -- all the usuals. But I think the -- the important point he made besides the minutiae is he again reaffirmed this point that Ursula von der Leyen had made, that there are going to be real changes as a result of this agreement and he says that he hopes the British people realize the immensity of the situation and the date and make the most of the opportunity.
In other words, the U.K. citizens until now have either been living under the E.U. or under their -- an umbrella of the E.U. during the transitional period and it's only from next week that the real change, of which he again and again referred to, the real change that will take place.
So, after a series of twists and turns, fits and starts, Brexit is now about to truly happen as the trade deal is put in place. Both sides are calling it a good agreement, a historic agreement. This is the way Boris Johnson put it a few moments ago.
(BEGIN VIDEO CLIP
JOHNSON: This is, I believe, a good deal for the whole of -- of Europe and for our friends and partners as well, because it will not be a bad thing in my view for the E.U. to have a prosperous and dynamic and contented U.K. on your doorstep. And it will be a good thing. It will be -- it will drive jobs and prosperity across the whole continent. And I don't think it would be a bad thing if we in the U.K. do things differently or take a different approach to legislation because in so many ways our basic goals are the same.
(END VIDEO CLIP)
QUEST: It's coming up to the top of the hour. It's -- the news today -- the breaking news bringing to you, Britain and the European Union have agreed their post-Brexit deal that will take place at the end of next week. The deal covers everything.
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