The European Union (EU) and the UK formally negotiated their negotiating mandates for talks on a new trade and political partnership on Tuesday (February 25th), launching a fierce battle for regulatory standards. The bloc will strive to achieve a “fair and balanced partnership with a sound governance framework”, said the EU chief negotiator Michel Barnier. He added that the talks would be “complicated, demanding and difficult”.

The mandate agreed by the Ministers in the General Affairs Council is similar to the project presented by the European Commission (EC) earlier this month.

The EU requires the United Kingdom to maintain “common high standards” which are in line with those of the bloc, while the fisheries provisions’ should maintain the existing conditions for reciprocal access, quota shares and traditional activities of the Union fleet.

Michel Barnier said it was necessary to reach a level playing field for regulators on financial services by June 2020 and a decision on data adequacy by the end of 2020.

In London, meanwhile, the government of Prime Minister Boris Johnson has signed his term of office, which will be formally announced on Thursday (February 27th).

UK ministers have repeatedly said the country will maintain “high standards” in a number of sectors, including competition policy, agriculture, social, environmental and labor standards, but will not agree to the UK being bound by EU regulatory standards. The first round of talks is expected in Brussels next Monday, with the second round taking place in London later in March.

In the meantime, the National Agricultural Union (NFU) has urged the London government not to undermine EU agricultural standards in order to reach a trade deal with the US. Washington sees the deal with the United Kingdom as an opportunity to increase exports of agricultural products, including chicken meat washed with chlorine.

The different positions on the negotiations, combined with a strict timeframe – the negotiators have ten months to reach an agreement and ratify a trade pact between the EU and the United Kingdom before the end of the post-Brexit transition period on December 31.

A report released on Tuesday (February 25th) by the United Nations Conference on Trade and Development (UNCTAD) warns that both countries are facing economic shock as a result of trade losses following Brexit.

The report predicts a 9% drop in UK exports to the EU, even if a “standard” FTA is negotiated that removes duties and quotas due to so-called duty-free measures (NTM).