Chequers Agreement

Chequers Agreement. The Chequers Agreement was a pivotal proposal formulated by the Government of the United Kingdom under Prime Minister Theresa May in July 2018. It outlined a detailed plan for the United Kingdom's future economic and security relationship with the European Union following its withdrawal, known as Brexit. The plan sought to maintain close regulatory alignment for goods while allowing for greater divergence in services, aiming to avoid a hard border on the island of Ireland. Its creation and subsequent rejection by both the European Commission and factions within Parliament significantly shaped the tumultuous final phase of the Brexit withdrawal agreement negotiations.

Background and context

The agreement emerged from protracted and complex negotiations following the 2016 United Kingdom European Union membership referendum, where a majority voted to leave the European Union. The Government of the United Kingdom, led by Theresa May of the Conservative Party, had triggered Article 50 of the Treaty on European Union in March 2017, beginning a two-year withdrawal process. Key challenges included resolving the status of the Northern Ireland Protocol to prevent a hard border with the Republic of Ireland, and defining a future trade relationship that satisfied both Brexit supporters and business interests. Previous positions, including the Lancaster House speech advocating a clean break, had proven difficult to reconcile with the practicalities of trade and the Good Friday Agreement.

Key provisions

The central proposal was a "common rulebook" for all goods, including agricultural and food products, which would see the United Kingdom commit to ongoing alignment with relevant European Union rules and regulations. This was intended to ensure frictionless trade at the border and protect integrated supply chains, such as those in the automotive industry. For services, which constitute the bulk of the British economy, the United Kingdom would seek greater regulatory autonomy. The plan also proposed a "facilitated customs arrangement," a complex mechanism where the United Kingdom would collect tariffs on behalf of the European Union for goods destined for the European Single Market. Furthermore, it endorsed the "backstop" solution for Northern Ireland to maintain an open border with the Republic of Ireland.

Negotiation and signing

The text was finalized during a lengthy meeting of the Cabinet of the United Kingdom at the Prime Minister's country residence, Chequers, on 6 July 2018. This gathering, often called the "Chequers summit," was intended to secure collective agreement from a divided cabinet. Key figures in attendance included Theresa May, Philip Hammond the Chancellor of the Exchequer, David Davis the Secretary of State for Exiting the European Union, and Boris Johnson the Foreign Secretary. Following the meeting, Theresa May announced that the cabinet had agreed on the proposal, though significant dissent remained. Within days, both David Davis and Boris Johnson resigned from the government in protest, criticizing the plan as betraying the spirit of Brexit.

Reactions and criticism

The proposal faced immediate and severe criticism from multiple fronts. Within the Conservative Party, prominent Eurosceptic figures like Jacob Rees-Mogg of the European Research Group denounced it as leaving the United Kingdom as a "vassal state" of the European Union. The opposition Labour Party, led by Jeremy Corbyn, rejected it as failing to protect jobs and standards. Crucially, the European Commission, under negotiator Michel Barnier, rejected the core "common rulebook" and customs proposals as undermining the integrity of the European Single Market and the European Union Customs Union. Key European Union leaders, including Emmanuel Macron of France and Leo Varadkar of the Republic of Ireland, also expressed significant reservations about its workability.

Aftermath and impact

The rejection of the Chequers plan by the European Commission at the Salzburg Summit in September 2018 rendered it obsolete as a viable negotiating position. This forced the Government of the United Kingdom to return to the drawing board, ultimately leading to the withdrawal agreement centered on the Northern Ireland Protocol and a broader political declaration on future relations. The failure of the Chequers Agreement deepened political divisions within the Parliament, contributing directly to the historic defeats of Theresa May's withdrawal deal in the House of Commons and her eventual resignation. It paved the way for Boris Johnson to become Prime Minister, who subsequently negotiated a significantly different deal based on a harder form of Brexit.

Category:Brexit Category:2018 in British politics Category:European Union and the United Kingdom