Meeting today between EC officials....>

EU COMMISSION: Meeting today between EC officials and EU27 reps regarding the

nature of FTA negotiations with the UK after it leaves the bloc.

- Issue to resolve is the nature of talks, & whether EC has exclusive competence

in brokering the deal or if responsibilities are shared with the member states.

- Under Art. 3 of the Treaty on the Functioning of the EU (TFEU), EC has sole

competence on negotiating: customs unions, competition rules re: internal

market, common commercial policy, issues relating to common fisheries policy.

- Art. 4 TFEU gives shared competence in areas of: internal mkt; social policy;

economic, social & territorial cohesion; agri & fish; environment; consumer

protection; transport; energy; freedom, sec, & justice; public health.

- Given broader nature of issues in shared competence, if UK wants a

comprehensive FTA it will be basically impossible to achieve by end-2020 given

all EU27 will have to sign off on it. 

- Smaller set of deals covering less ground could be done under exclusive

Commission competence, but would risk greater upheaval at end-2020 with future

of EU-UK relations still unaddressed in many areas.