Ashton Whiteley - EU Rejects Open Market Access for UK

Ashton Whiteley - Le Maire believes Britain's proposal for a system of mutual recognition post Brexit will not work.

​Shanghai, China based Ashton Whiteley analysts say that although France maintains that it is not taking a hard line on Brexit negotiations, it does not see a strong possibility of a free trade deal being struck which grants the UK the level of access it seeks for financial services.

Currently, financial institutions in the UK can now trade across the European Union’s single market under European “passporting” regulations. According to Ashton Whiteley analysts, this free trade is expected to come to an end after Britain leaves the European Union in March of next year.

During a recent trip to Britain, France’s finance minister, Bruno Le Maire stated that financial institutions would have to depend on a legal mechanism called equivalence. Ashton Whiteley economists say this mechanism enables countries from outside the European Union to access the single market in a limited capacity and subject to various regulations.

Ashton Whiteley analysts say the UK government is putting forward an alternative mutual recognition strategy in an effort to retain access to the European Union subject to the condition that each side maintains regulatory levels in keeping with international standards.

European Union leaders say that this is not a plausible solution post Brexit.

The debate between the UK and European Union over access to the single market for Britain’s banking sector in the future is becoming one of the main Brexit issues that must be resolved before Britain withdraws from the EU in March of 2019.

Le Maire has denied hints in the UK press that France is taking a tough stance in Brexit discussions.

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Source: Ashton Whiteley