BRUSSELS – The European Union will reject any Brexit agreement that will allow the UK to remain in the domestic market for goods, a source close to the Business Union negotiating team told Business Insider.
The UK Government is reportedly considering a Brexit policy, which stipulates that Britain retains its membership of the internal market for goods in order to minimize disruption in trade between the UK and the EU and maintain the invisible Irish border.
This week, a source close to Michel Barnier, the EU's chief negotiator, said the European Commission would reject this proposal. "We would say no, the UK will not get that," they said.
"We have always understood that protecting the integrity of the single market is essential, and once you give the United Kingdom the single market in goods, the market begins to disentangle, where we are."
Under the proposed model, the UK would continue to be fully in line with EU rules and regulations on goods. This approach is welcomed by companies that want to continue duty-free and smooth trading.
However, in other areas, including services, the UK would deviate from EU rules. Crucially, the United Kingdom would give the UK the opportunity to terminate its membership in the EU's free movement policy, allowing EU citizens to travel, work and live freely through the bloc.
The refusal adds to an early chorus of warnings from European colleagues that the proposals would be rejected from the outset. The Spanish Foreign Minister said this week that the EU's most powerful member states ̵
"Germany will say no, France will say no, Spain will say no," said Josep Borrell on Tuesday.
"We need this for something we can actually use in negotiations"
The European leaders are in Brussels for the recent summit of the European Council. Although Brexit is not high on the agenda, Brexit remains an important topic of discussion. Talks about the tricky question of the Irish border have ended in a dead end.
Theresa May's Cabinet will meet next Friday to reach a common position on Brexit before declaring its conclusions in a long-awaited white paper expected to be released on Monday, July 9. 19659002] The White Paper has been billed as the most important and detailed government literature on Brexit.
Westminster's 100-page draft, however, does not see any answer to a few key issues, notably the specific post-Brexit tariff model that the government intends to pursue following Channel 4.
The source near Barnier and The EU negotiating team said the European side was "very upset" if the white paper did not provide details, adding, "We need this as something we are actually negotiating to be able to use."
They also stressed that the recent proposals that May is considering an association agreement "basically say nothing" until the British side clarifies what they want to include in the agreement.
This approach, endorsed by the European Parliament, would help the UK avoid a large number of bilateral agreements, such as those between the EU and Switzerland, by bringing all cooperation together into a single agreement.
A spokesman for the People's Vote campaign told BI: "The government stumbles from one impracticable Brexit proposal to the next, and all the while the clock keeps running down and the edge of the cliff is coming closer and closer  "Despite the growing number of corporate warnings, despite citizens' concerns, government ideologues insist they eat and eat their cakes.
They added, "Instead of pursuing our country from the edge of the cliff by a fantasy, we need a vote on the final Brexit deal so that people in that country can decide whether the deal offered is good enough or not , "
The European Commission is hoping for the start of a final at the end of July so that both sides can negotiate for almost two months before the summit in October.