As the UK and EU try to turn a new page on their relationship, fresh negotiations are hitting a familiar snag: trust. British Prime Minister Keir Starmer is working towards a “Brexit reset,” but the EU is reportedly demanding a hefty insurance policy in case any future UK government decides to backtrack on new agreements.
At the heart of it is a proposed “termination clause,” now being dubbed the “Farage clause” by some EU diplomats. This clause, appearing in a draft agreement on agriculture trade, would require any party pulling out to cover the significant costs of reinstating border checks and infrastructure. Think of it as a breakup fee.
Why such a demand? The EU remembers the painful and expensive divorce of 2020. They set up a colossal €5.4 billion fund to help member states cope with the disruption caused by the UK’s exit. Places like Ireland, the Netherlands, and France had to spend hundreds of millions setting up new customs posts, hiring veterinary officers, and preparing for border controls not seen in decades. The bloc doesn’t want to be left footing that bill again if a future UK leader, like Reform UK’s Nigel Farage, makes good on threats to cancel agreements.
However, UK sources quickly dismiss this as standard practice. They insist such clauses are routine in international deals and are “written to work both ways.” This means if the EU were to back out in the future, they’d be on the hook for compensation to the UK. Labour Party sources call the fuss over these “basic staples” of trade agreements “exhausting.”
Negotiations on crucial areas like sanitary and phytosanitary (SPS) agreements (which cover food and plant health standards) are just beginning and are expected to be complex and lengthy. An agreement on carbon emissions has also proven tricky. Experts note that the EU is playing hardball, believing the UK needs these deals more.
Ultimately, this clause highlights the deep-seated caution on both sides. While routine for some, it underscores the lingering cost and complexity of the post-Brexit world, ensuring that any new agreements come with a potential price tag for breaking them.
