EU's draft new deal envisages close ties with Brexit Britain

The European Union's new deal with Brexit Britain envisages a tight trade and security relationship, according to a draft seen by Reuters on Friday, despite London saying it is seeking looser ties." Britain and the EU are now in talks on their new partnership after the status-quo transition period following Brexit runs its course at the end of the year.

The draft, prepared by the bloc's executive European Commission before a second round of talks with London next week, includes the so-called level playing field provisions for fair competition that the EU says are necessary, but London rejects. "The Parties recognise that the establishment of conditions that ensure a level playing field between the Parties is necessary for trade and investment," the 441-page draft read.

On another contentious point between the estranged allies - fisheries - it envisages reciprocal access to fishing waters and annual negotiations to end by Dec.10 on fishing opportunities for the following year. In case of trade disruptions, the bloc would be allowed to slap protective measures as soon as in 15 days after notifying Britain, it also read.

The draft comes with an accompanying 17 pages of a proposed new partnership on "foreign policy, security and defence", which recognises, however, that "the United Kingdom has expressed clearly that it does not wish to engage" in such negotiations. While the EU is pushing to keep Britain in close touch from 2021, Johnson has said he was ready to default on rough World Trade Organization rules, which include tariffs and quotas, if London and the bloc were unable to seal their own trade deal.

Britain has also said it would present its own draft of the future deal before the second round, which is due to start on March 18 but face-to-face talks have now been cancelled because of the coronavirus epidemic.