EU seeks 'Farage clause' in Brexit reset talks with UK

A draft reported by the Financial Times says the EU wants a termination clause that would require a withdrawing party to cover the costs of reinstating border controls. Negotiations on sanitary and phytosanitary rules in the Brexit 'reset' package are due to begin this month and could take months to complete.

The EU is reported to be asking for a clause in the Brexit 'reset' talks that would require either side to pay for the cost of re-establishing border and inspection controls if they later withdrew from an agreement. The draft text, seen by the Financial Times, relates to an agriculture trade deal intended to remove post‑Brexit checks on farm produce. EU diplomats have nicknamed the provision the "Farage clause." UK sources say such exit provisions are routine and written to apply to both parties. Key points: - The draft termination clause would require the withdrawing party to cover costs such as infrastructure, equipment, initial recruitment and training to restore border controls, according to the Financial Times report. - The clause is referred to by some EU diplomats as the "Farage clause," reflecting concerns about a future government cancelling sanitary and phytosanitary (SPS) arrangements; UK sources say the wording is reciprocal. - A Labour source described exit provisions as a standard feature of international trade agreements and framed criticisms as overblown in tone. - Negotiations on the SPS element of the reset package are due to start this month and may take months; the reset package also touches on Erasmus and talks on a carbon border measure remain unresolved. - When planning for Brexit disruption in 2020, the EU set a €5.4bn adjustment reserve and allocated funds to member states to help reinstate customs, veterinary and other controls. Summary: If adopted, the clause would aim to assign financial responsibility for costs tied to re-establishing border controls after withdrawal from an agreement. Negotiations on the SPS agreement are scheduled to begin this month and are likely to be protracted, with other elements of the reset package still under discussion.