Sign up here to receive the daily news briefing in your inbox every morning with exclusive insight from the BrexitCentral team Don’t break up the UK, May warns EU leaders, as Commission prepares to publish draft withdrawal treaty… Theresa May will warn Brussels not to use Brexit to break up the UK in a “robust” fightback against its insistence that Northern Ireland must remain in a customs union. The EU will today publish a new draft withdrawal agreement demanding that Mrs May sign up to legal commitments preventing a hard border in Ireland even if that means customs checks between Northern Ireland and the rest of the UK. It also states that the European Court of Justice (ECJ) must have the power to “interpret and enforce” the agreement against British objections. The prime minister has been told that failure to agree an outline of the text could jeopardise a transition agreement at next month’s European summit and stall talks on a future relationship. Figures close to No 10 said that the demands were unacceptable and would be rejected. – The Times (£) One of the [DUP]’s senior members, Sir Jeffrey Donaldson, tweeted: “This fundamentally breaches the understanding reached in December and would undermine the constitutional status of NI in the Belfast Agreement. If the EU or Dublin believes the UK government will be signing up to a border in the Irish Sea, they are deluded. Taoiseach (the Irish prime minister) knows that.” …The EU commissioners’ 120-page draft Brexit withdrawal document will refer to three possible options for avoiding physical infrastructure on the Irish border. However, the only one to be fleshed out will be the government’s least-favourite: the option of Northern Ireland staying aligned with European rules and regulations, says BBC Brussels reporter Adam Fleming. – BBC News Northern Ireland ‘may become part of EU customs territory’, reports Irish national broadcaster – BBC News Theresa May ‘will refuse Brexit deal that threatens UK integrity’ – Guardian Theresa May to spark new Brexit row by refusing to sign EU treaty enshrining divorce deal in law – The Sun May’s allies slam EU’s Irish Brexit proposals as ‘unacceptable’ – Bloomberg Government cannot accept Brexit deal that keeps UK under jurisdiction of European Court of Justice, warns Boris Johnson – Telegraph (£) Brussels primes political ‘grenades’ for Brexit divorce text – FT (£) Brexit legal text signals greater EU urgency – Politico Are the Brexit talks bordering on collapse? – James Forsyth for the Spectator …while Guy Verhofstadt says European Parliament will fight to keep Northern Ireland subject to EU law after Brexit… British MEPs accused the parliament’s Brexit coordinator of “intolerable interference” in UK affairs and of trying to topple Theresa May’s government. Mr Verhofstadt, the parliament’s Brexit coordinator, told MEPs in the Constitutional Affairs Committee that it was the only way to prevent a hard border between Ireland and Northern Ireland. “It’s for us key that there will be in future, whatever the outcome of negotiations will be, no divergence in norms, rules or standards between the North and Republic of Ireland. That is our goal,” he said… “In practice, the EU wants the European Court of Justice to have jurisdiction over Northern Ireland, which will then become a rule-taker for large swathes of EU law,” said a source briefed on the text. “In effect, it will leave Northern Ireland in the EU, as rest of UK departs.” – Telegraph (£) Northern Ireland must be governed by EU rules after Brexit, Guy Verhofstadt says – Independent …as leaked letter reveals Boris Johnson told Theresa May the risk of Irish border checks was ‘exaggerated’ Boris Johnson privately urged Theresa May not to pursue a “no border” policy for the island of Ireland after Brexit and said the government must only prevent the border becoming “significantly harder,” according to a Sky News report. In a leaked letter, the foreign secretary said an “exaggerated impression” of “how important checks are” at EU borders had been created, and that “even if a hard border is reintroduced … 95 percent+ of goods” could pass through without checks. The letter was sent in a response to the prime minister’s request, at a February 7 meeting of her Cabinet’s Brexit sub-committee, for Johnson to set out how he believed the border could be managed if the U.K. leaves the EU’s single market and customs union, according to the report. His response was 18 pages long and was distributed to members of the committee before last week’s meeting at the prime minister’s country residence Chequers, a government official familiar with the situation said. – Politico Boris Johnson raises the prospect of border checks in Ireland in leaked letter to Prime Minister – Telegraph (£) Foreign Secretary tries to backtrack in leaked letter after getting mocked for comparing Irish border checks with London’s congestion charge – The Sun Boris Johnson in storm over Brexit and Northern Ireland – FT (£) Lord Hain tables Brexit amendment to ‘ensure frictionless Irish border’ – Guardian Former PM Sir John Major calls on Parliament to soften Theresa May’s plans for Brexit – The Sun > WATCH: DUP MP Sammy Wilson responds to the leaked Johnson memo Michel Barnier says UK cannot have open-ended Brexit transition… [Barnier] suggested the UK wanted an “open-ended” arrangement while the EU wanted a “short and time-limited” period that would last no more than 21 months… Restating the EU’s position that the transition should end on 31 December 2020, he said there were suggestions the UK did not want to put a definite end date on it. “There are significant points of disagreement with the UK as to what we understand as transition agreement, the duration of this, and conditions for such an agreement,” he said. “The UK would like to, it seems, keep this duration open, which is not possible… In the light of these disagreements, we have not achieved a transition yet.” He said he was prepared to begin talking to the UK on solutions to avoid a hard border between Northern Ireland and the Republic of Ireland once his counterpart David Davis put forward “concrete” proposals. – BBC News …as he demands ‘crisis talks’ with David Davis to save transition deal Michel Barnier has demanded that David Davis comes to Brussels for emergency talks to salvage UK-EU negotiations over the Brexit transition deal. The European Union’s chief Brexit negotiator laid down the gauntlet to the British Brexit Secretary, who has not been in the EU’s capital since early December last year, after meeting with EU-27 Europe ministers on Tuesday… Transition talks, which would prolong Britain’s membership of the EU’s single market and customs union for about two years after the 29 March 2019 Brexit deadline, have stalled on four areas, including the continuation of freedom of movement during transition, Mr Barnier told reporters in Brussels. – Telegraph (£) EU chief negotiator summons David Davis to Brussels for crisis talks – The Sun Liam Fox warns of customs union ‘sellout’… Any form of customs union with the EU after Brexit would be a “complete sellout” for the UK, International Trade Secretary Liam Fox has said. The UK would find itself in a “worse position” than it is now, he said, if it left the existing arrangement but negotiated a similar new one. Having to accept EU rules and limits on doing other deals would make the UK “less attractive”, he said. But his former top official has criticised the government’s strategy. Sir Martin Donnelly, who was permanent secretary in the Department for International Trade until last year, said any deals done after Brexit would not compensate for leaving the single market and the customs union. Giving up access to the EU market and its existing trade agreements was “rather like rejecting a three course meal now in favour of the promise of a packet of crisps later”, he said. – BBC News Liam Fox says former top civil servant stuck in past for fearing hard Brexit – Guardian Liam Fox blasts ex-EU adviser Sir Martin Donnelly’s ‘crisps’ jibe at Government’s Brexit trade deal plans – The Sun Liam Fox: Brexit plans ‘more complicated than a packet of crisps’ – Sky News Brexit and the revenge of the mandarin – Annabelle Dickson for Politico How did someone who thinks we should stay in the customs union end up running DIT? – Guido Fawkes Former civil servant’s very public Remain lobbying – Steerpike > David Scullion on BrexitCentral: Fox’s former ‘crisp-packet’ advisor gets his sums wrong …which he says would be a ‘betrayal’ of Brexit voters… Entering a customs union with the EU after Brexit would be “a betrayal of the voters in the referendum,” the U.K.’s International Trade Secretary Liam Fox said, insisting that Britain must have a “fully independent trade policy” enabling it to strike comprehensive free trade deals with other countries. In a major speech in London on the U.K.’s future trade, Fox criticized the EU, saying that in many areas of global trade, in particular services and digital industries, it had been “unable to keep pace” with change. Outside the EU, the U.K. would “forge the way for liberalization” of those trade sectors. “Remaining in a customs union of any type would only make sense if we were to abandon our global ambitions … tomorrow’s choices would be constrained by today’s status quo,” he said. – Politico Liam Fox hits out at ‘incoherent, inept and clueless performance’ of the Labour Party as he delivers Brexit speech – Mirror ‘It’s still pie in the sky’: Remain voters on Corbyn and Brexit – Guardian Liam Fox is still a ticking time bomb – and his customs union speech is aimed at Theresa May – Asa Bennett for the Telegraph (£) > READ: Full text of Liam Fox’s ‘Road to Brexit’ speech > WATCH: Liam Fox’s ‘Road to Brexit’ speech > Shanker Singham on BrexitCentral: Why Labour’s new customs union proposal is a non-starter …while Andrea Leadsom suggests UK could seek ‘customs arrangements’ for some sectors Britain’s post-Brexit trade deal with the EU could include “some customs arrangements in certain sectors” where there is a “very tight supply chain,” Leader of the House of Commons Andrea Leadsom said Tuesday. The leading Brexiteer, who stood against Theresa May in the race to lead the Conservative Party after David Cameron resigned following the 2016 referendum, told Politico that the government could seek closer alignment to the EU in some areas. We have been very clear that we will be coming out of the customs union and the single market because of course if we are in the customs union, we can’t write free-trade agreements with the rest of the world,” she said. – Politico Philip Hammond to insist that a Brexit trade deal must include services in major speech next week Philip Hammond will try to rescue Britain’s hopes for a “comprehensive” trade deal with the European Union after Brexit, when he delivers a major speech next week. The Chancellor will insist that services, including those of the financial sector, must be included in any agreement – rejecting the EU Brexit negotiator’s view that the option “doesn’t exist”… Speaking in the Commons, Mr Hammond said the UK would not view any proposed deal with the EU as “fair” unless Brussels gave way on services. “We are clear that a future comprehensive trade partnership with the European Union must include goods as well as services,” he told MPs. “A deal can only be done if it is fair to both sides and, because of the shape of the UK economy, it would be very difficult to see how any deal could be fair if it doesn’t include services.” – Independent Britain can have its ‘fish cake’ and eat it, says Government minister on fishing after Brexit As members of the EU, Britain has been subject to rigorous catch quotas and has had millions of tonnes of fish taken from its waters by EU fleets. George Eustice told MPs he wanted to “rebalance” this arrangement. Addressing a Westminster Hall debate on the future of fishing policy, he said: “In the years 2012 to 2016, on average, each year, the EU fleet took 760,000 tonnes of fish from UK waters. In the same period, the average annual take of the UK fleet from EU waters was 90,000 tonnes. “We have been clear that once we regain control of access and management of our resources it is our intention to rebalance that arrangement. Mr Eustice added: “At end of the day, it doesn’t matter what the European Union might ask for – what matters is what we are prepared to grant them.” – Telegraph Misleading food labels will be shelved under Gove reforms – The Times (£) Michael Gove takes a swipe at Barnier – Steerpike SNP’s alternative Brexit Bill declared unlawful by Holyrood presiding officer An attempt by SNP ministers to force the UK Government to back down in a row over post-Brexit powers has descended into a legal quagmire after Holyrood’s presiding officer declared it unlawful. The Scottish Government tabled their own EU Withdrawal Bill after failing to reach agreement over the UK Government’s version, which will determine which powers repatriated from Brussels are devolved… But the move appeared to backfire after Ken Macintosh, Holyrood’s version of the Commons Speaker, ruled that the new European Union (Legal Continuity) (Scotland) Bill was beyond the Scottish Parliament’s powers. It was the first time that a Scottish Parliament presiding officer has ruled that a government Bill was not “competent” since devolution started in 1999. – Telegraph (£) Nicola Sturgeon rejects offer in Brexit devolution row – BBC News Welsh and Scottish governments raise pressure over Brexit plans – Guardian Scots and Welsh set up Brexit legislative stand-off with Westminster – FT (£) Jeremy Warner: May is getting it right on Brexit. We can only pray she is not thwarted It’s hard to know what was the more remarkable about Sir Martin [Donnelly]’s intervention; that someone who plainly never believed in the trading opportunities outside the EU could have been appointed as the newly created department’s first permanent secretary, or that the debate has moved on so little since the referendum campaign, when all these arguments and counter arguments were explored in depth… That the CBI and other business voices have fallen for the sophistry of Corbyn’s approach is risible. Labour’s nakedly transparent purpose is to split the Conservative Party, as well as position itself to capture the Remain vote… Where Fox is surely right is insisting that there isn’t a lot of point, from an economic perspective, in quitting the institutions of the EU if denied the opportunity to negotiate compensating trade deals with others. Staying in the customs union would compromise, or even completely undermine, this objective… [May’s] so-called “three baskets” proposed for the UK approach are easy to ridicule, if only for the terminology, but in fact they stand rather more chance of success than widely appreciated. The objective is in essence no different from that which instructs most free trade negotiations, where you end up with something close to perfect free trade in some areas, partial free trade in others, and still further sectors where protectionist barriers and regulatory difference persist. – Jeremy Warner for the Telegraph (£) Jeremy Corbyn in charge would do greater damage to the economy than Brexit ever could – The Sun says Labour leader Jeremy Corbyn is making a cynical bid for Downing Street – Express editorial Certain Tory MPs are prepared to bring down the Government to stop Brexit – Peter Hill for the Express The difference between ‘a’ customs union and ‘the’ customs union – James Rothwell for the Telegraph (£) > Austin Mitchell on BrexitCentral: When it comes to a customs union, Labour Remainers are playing semantic games Vernon Bogdanor: A customs union won’t help – there is no such thing as a ‘soft’ Brexit There cannot be different sets of standards or regulations between different members of a customs union, for that would allow a country to subvert the common tariff. So Britain would have to align itself not only with EU trade policy but also with the laws of the EU in certain areas: not only as they are now but also as they may be altered in years to come – except without a vote to help decide on them. Britain would be subject to regulation without representation, the very relationship that led the North American colonies to break away from Britain over 200 years ago. But perhaps the greatest illusion shared by supporters of a customs union is that it would promote a frictionless border. Anyone who has seen the queue of Turkish lorries at the Bulgarian border, sometimes extending 10 miles – a two-mile queue is considered a good day – will realise that this is not the case… The truth is that there is no such thing as a “soft” Brexit without making Britain in effect a client state of the EU. From that point of view, May was absolutely right to have declared that Brexit means Brexit. The real choice facing Britain is stark: between a “hard” Brexit, and remaining in the European Union. – Vernon Bogdanor for the Guardian Telegraph: The EU has no right to dictate to Britain what status Northern Ireland should have It must have escaped the notice of the EU’s Brexit negotiators, but Northern Ireland is part of the United Kingdom. Michel Barnier and his Brussels cohorts have no business dictating to this country how to preserve its territorial integrity. Yet so confused has the British Government’s position become that they have been emboldened to do just that. A draft of the so-called divorce treaty to be published today is expected to propose that, if the UK wants to avoid a hard border on the island of Ireland, then Northern Ireland will have to remain in the EU customs union and aligned to European single market rules. Both of these outcomes have been rejected by Theresa May for the UK as a whole. To treat Northern Ireland differently, therefore, would open up once again the questions of national identity that have caused such misery in the past. – Telegraph editorial (£) If the EU didn’t like the December Phase 1 deal, it shouldn’t have agreed to it – Andrew Lilico for Reaction Aarti Shankar: Why would the EU agree to Labour’s customs union proposal? Labour is seeking an unprecedented solution that would be extremely difficult to negotiate. Third countries in a customs union with the EU do not enjoy any formal representation or influence through the EU. For instance, Turkey – who has held a customs union with the EU since 1995 – has no decision-making power over what countries the EU chooses to strike free trade deals with, nor can its represent its interests in these negotiations through EU institutions. While the EU is currently considering upgrading its customs union with Turkey, it does not foresee increasing Turkey’s role in trade negotiations. What interest would the EU have in granting the UK such an unparalleled role post-Brexit? – Aarti Shankar for Open Europe Corbyn’s customs union plan branded ‘impossible’ by director general of Institute of Economic Affairs – Express Six questions for Corbyn’s new Customs Union policy – James Arnell for ConservativeHome Marcus Fysh: Let’s not waste time on Efta: it would not deliver on what Brexit voters wanted Last week, my colleague Anna Soubry praised an article by Antoinette Sandbach arguing for Efta. Now she wants amendments mandating the UK to enter a customs union with the EU, on the same terms as we have with it now, which would rule out Efta as an option because Efta is outside the Customs Union… The advocates of Efta suggest that joining would give us access to the Single Market, but without ever closer political union. This is wrong on both counts. Efta itself does not give Single Market access. This is in return for signing the European Economic Area (EEA) Agreement (Switzerland its own bilateral agreements). The EU uses this agreement for one purpose above all – to harmonise Efta countries’ laws with Brussels. – Marcus Fysh MP for the Telegraph (£) John Caudwell: Barnier and Co must end their political point-scoring Michel Barnier and his team of negotiators appear unconcerned about the implications of Britain leaving without a free-trade deal. The fact is the EU exports £318bn worth of goods and services to the UK, representing a trade surplus on their part of £82bn. Were that to greatly diminish, it could have a catastrophic impact on jobs, businesses and industries across the continent… An attempt by the EU to punish us for exercising our democratic rights would have a hint of the Cold War era, when the Soviet Union sought to force Warsaw Pact members into complicity. EU leaders must surely be aware that making an example out of Britain would be an act of unnecessary economic and diplomatic self-harm. It is the job now of Britain’s negotiating team to shout a clear message that EU members stand to lose billions because of Brexit. A free-trade deal is firmly in both our economic interests, but whatever the outcome, Brexit is a fantastic opportunity for British businesses. – John Caudwell, founder of Phones4U, for the Telegraph (£) Peter Lyon: If Britain is to Brexit properly, it must get out of the EU’s Defence Union In a speech last weekend, the Prime Minister rightly restated Britain’s unconditional commitment to the security of Europe, regardless of Brexit. She outlined a vision of a future security partnership to deliver this commitment. But Theresa May’s proposals are based on a fundamental misunderstanding of the nature of the EU’s ongoing defence integration. They would leave the UK in an unacceptable position as a subordinate to a protectionist European Defence Union. Over the past 18 months, British and European officials in nearly all policy areas have been working out how best to detach the UK from the EU. Perversely, the opposite has been the case in the area of defence. Since November 2016, the UK has joined all parts of the EU’s Defence Union – except one. The UK was one of 3 Member States to opt out of Permanent Structured Cooperation (PESCO), but involvement in all the other mechanisms will keep Britain attached. The complex web of programmes covers finance, procurement rules and command centres. Unbelievably, this has all happened without a vote in Parliament, and little or no press coverage explaining what is going on behind our backs. – Peter Lyon of Get Britain Out for Reaction Comment in brief Last chance, Theresa – spell out Brexit like you mean it – Allison Pearson for the Telegraph (£) British businesses must seize this chance to tap into Asian potential – Kevin Burrowes for City A.M. Liam Fox and Boris Johnson show Brexiters are losing the argument – Seb Payne for the FT (£) It will be Merkel’s fault if the EU falls apart – Roger Boyes for The Times (£) Cheers for Brexit! The most British of measures, a pint of champagne, is to return – Melanie McDonagh for the Telegraph (£) News in brief Good news for consumers: Food price inflation slowed last month – City A.M. Brexit not slowing hiring at one of UK’s major tech firms – Bloomberg Derwent to pay special dividend as demand for London offices holds up – Telegraph ‘It’s not the 19th century!’ – Daniel Hannan mocks EU for Brexit customs union stance – Express Evan Davis loses temper with Irish politician Neale Richmond over Brexit on BBC Newsnight – Express