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Brussels proposes delaying tuition fee demand till after UK-EU summit

LONDON β€” Brussels is proposing to extend negotiations on its core demand for cut-price tuition fees for EU students studying in the U.K. beyond next month’s leaders’ summit, as a package of deals nears completion, three EU diplomats with knowledge of the talks told POLITICO.

The European Commission on Wednesday presented the option to member countries of decoupling the tuition fee demand from the long-delayed U.K.-EU summit on Nov. 20.

A postponement would clear the way for a deal to be struck on other key elements of Britain’s β€œreset” with the bloc, including new agreements on agri-food trade, emissions trading, and a youth experience scheme.

The diplomats β€” all of whom were granted anonymity to speak freely about ongoing talks β€” said the proposal would involve asking the U.K. to commit to finalizing an agreement on tuition fees within six months. The proposal was first reported by the Financial Times.

The EU is pushing for European students to pay the domestic rate for tuition fees when studying at British universities, as they did before Brexit.

But one of the diplomats highlighted that the tuition fee demand was still part of a wider β€œpackage” linked to the other three agreements slated for the summit, and that the agreements would not enter into force until there was agreement on all areas.Β 

In addition, the diplomats confirmed that both sides were considering a joint summit statement on economic security, amid mounting U.K. concerns about the EU’s Made in Europe proposals.

Meanwhile, negotiations on a sanitary and phytosanitary (SPS) deal β€” which would see the U.K. and EU align on agri-food standards β€” are close to completion, two of the diplomats said. The deal would include temporary arrangements for gene-edited plants and novel foods, such as lab-grown meat.

For gene-edited plants, the U.K. wants to keep its own rules until equivalent EU rules come into force, and has pledged not to change them in the meantime.

For novel foods, the U.K. would follow EU decisions to approve or reject products, but could set its own rules for products the EU has not yet assessed. In both cases, the products would be sold only in Great Britain and would not have access to the EU single market.

Dan Bloom contributed to this report

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China threatens retaliation if UK follows the EU on tariffsΒ 

LONDON β€” Beijing has threatened to retaliate if the U.K. raises tariffs on Chinese electric vehicles, aligning with the European Union.

Responding to POLITICO’s story that Britain was looking to act in β€œlockstep” with the bloc to counter China’s market dominance in electric cars, a spokesperson from the Chinese Ministry of Commerce said: β€œIf the U.K. insists on imposing restrictions on Chinese electric vehicles, China will resolutely retaliate and safeguard the legitimate rights and interests of Chinese industries.”

The U.K. is currently working with its European partners to avoid a 10% electric vehicle tariff from the beginning of next year, when stricter rules of origin under the Brexit trade deal kick in.Β 

The British government is also lobbying to be included in the EU’s Made in Europe policies, which give Brussels-made products preferential treatment in certain procurement projects.Β 

U.K. Trade Minister Anas Sarwar told POLITICO on the sidelines of the German-British Business Summit at Mansion House last week that β€œthe more that the U.K. and the EU work together and act in lockstep, the better it is for both the U.K. and the European Union.” 

β€œThe automotive sector and partnership remain strong, but do we have to grapple with the challenge that comes from rapid expansion in China? Of course we do,” he added.Β 

China urged Britain to follow World Trade Organization rules and warned it against copying Brussels’ approach, arguing that tariffs on Chinese EVs would be discriminatory.Β 

β€œChina urges the U.K. to abide by WTO rules, think carefully, and not follow the European Union,” said the Chinese Ministry of Commerce spokesperson. β€œChina will closely monitor the U.K.’s developments.”

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