Why is the UK seeking to influence EU decisions after Brexit? Analysis

After Brexit, the UK is trying to regain influence on the formation of European rules that continue to determine the working conditions of its economy. London expects to gain access to the relevant EU committees, but Brussels is afraid to set a precedent for countries outside the union. The dispute is based on the issues of business competitiveness on both sides of the English Channel. Why the British authorities seek to participate in EU decision—making and what risks the European Union sees in this is in the Izvestia article.

Attempts at rapprochement

• In the UK, 51.9% of participants voted to leave the EU in a referendum on June 23, 2016, and the country finally left the union on January 31, 2020 after 47 years of membership. However, Britain is now seeking to participate in the work of important EU committees, hoping to influence the harmonization of norms and requirements. London wants to join structures that develop rules for agriculture, food standards, the carbon quota market and the electric power industry. The British authorities believe that rapprochement with the EU will help boost trade, reduce administrative barriers and expand job opportunities for young people.

• However, this initiative was met with resistance in Brussels. The European Commission recalled that the current agreements do not provide for the UK to participate in decision-making after leaving the bloc. Several EU states also opposed giving London the right to vote.

• Attempts to improve relations after Brexit are accompanied by disagreements on other issues. The EU insists on expanding youth programs and criticizes London's plans to charge fees for young Europeans coming to study or work in the British healthcare system. The attempt to join the largest defense fund of the Union also failed.

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• The internal political situation in the country creates additional difficulties: after the recent resignation of Prime Minister Keir Starmer, the negotiation process has slowed down, and the EU—UK summit scheduled for July is likely to be postponed to autumn.

Economic interdependence

• The European Union remains the UK's largest foreign trade partner. It provides a significant share of the total trade turnover of the United Kingdom: it accounts for about 41% of all British exports and 50% of imports. For many British industries, it is the European technical requirements that determine the conditions for market access. This applies to manufacturers of food, chemical products, automobiles, medical equipment, electronics, and energy companies. Businesses have to take into account changes in European legislation even without the country's participation in the preparation of these decisions. Any new requirements mean additional costs for certification, changes in production processes and paperwork. For this reason, London is seeking participation in relevant EU committees.

• Many British companies receive components from EU countries. Then they export the finished products back to the European market. The automotive industry is the most illustrative example. Overall, the UK automotive sector exports more than 77% of its products, and about 56% of these exports go to the European Union. The European Automobile Manufacturers Association has called on Brussels to provide exceptions for British companies.

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• London considers participation in European committees as a tool to protect national business. The Government is striving to move from the role of implementing ready-made solutions to a format that will influence the content of future standards.

• The European Commission considers that the right to participate in the preparation of decisions is linked to the obligations of the single market countries and membership in EU institutions. Some of the Union's states support this position. Nevertheless, the two sides continue to negotiate, as European supply chains, energy security and climate policy require constant coordination.

EU concerns

• The European Union considers Britain's demands through the prism of long-term political consequences. Brussels fears that granting London the right to participate in the work of relevant committees will create a new format of relations that other partners may demand. Such a scenario can change the current decision-making system within the EU.

• If Brussels grants London additional rights without restoring full membership, Switzerland, the states of the European Economic Area and other countries that have agreements on close cooperation with the EU may seek similar conditions. Such a precedent can complicate negotiations on new trade agreements and reduce the attractiveness of full membership in the union.

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• At the same time, the European Union takes into account the interests of its own business: European manufacturers are interested in maintaining stable supply chains with British enterprises. Negotiations are continuing on agri-food products, the integration of carbon trading systems and the energy market.

• Brexit was the first case of a state leaving the EU in the entire history of unification. The union's leadership strives to maintain confidence in the European model of integration, and any concessions to London are carefully assessed by the governments of all 27 countries. Many of them fear the formation of a scheme in which the state gets access to the discussion of European rules without full participation in EU institutions and without a comparable amount of obligations.

• The UK's attempts to regain influence over European regulation show that Brexit has not eliminated the country's close economic ties with the European Union. London is striving to reduce costs for businesses and get the opportunity to take their interests into account even at the stage of preparing new rules. Brussels, in turn, is trying to preserve the current EU governance model and prevent the emergence of a precedent that could change the balance of rights and obligations for non-member states. The outcome of these negotiations will determine the format of relations between the UK and the European Union in the coming years, as well as affect trade, investment and regulation of key sectors of the European economy.