EU threatens "hard talks" on post-Brexit deal.

The European Union is readying itself for "hard talks" on future ties with a post-Brexit Britain ranging from trade to security but the process could fail if London does not secure the Irish border as earlier agreed, ministers said on Tuesday.

Britain left the EU on January 31st, but sensitivities around the Irish border, sensitivities that many feel were artificially created by EU negotiators, remain a sticking point.

With both sides talking tough ahead of the coming negotiations, Ireland warned that even a basic trade deal would be impossible by the end of this year if London does not honour border obligations under the withdrawal deal.

“If there isn’t progress on the infrastructure needed...in the next few months, that’s going to be a very worrying signal for whether or not it’s going to be possible to conclude something sensible before the end of the year,” Irish Foreign Minister Simon Coveney told reporters in Brussels.

“If that doesn’t happen, it will damage significantly the prospects of being able to get even a bare-bones trade agreement...by the end of the year,” he said on arrival for a meeting with peers at EU headquarters.

Under the complex divorce settlement between the world’s fifth-largest economy and its biggest trading bloc, Northern Ireland remains in the UK’s customs area but tariffs would apply on goods crossing from mainland Britain to Northern Ireland if they were headed further to Ireland or elsewhere in the EU.

“We will comply with our obligations,” a spokesman for British Prime Minister Boris Johnson said on Monday. “The prime minister... has been clear that beyond the limited changes... there will be no changes to Great Britain-Northern Ireland trade and we have not asked any ports to prepare for new checks or controls between Great Britain-Northern Ireland.”

Johnson’s hardline eurosceptic government has also said it will not introduce any new checks or controls at the land border with Ireland. Coveney stressed the EU would not accept that.

“The implementation of agreements that have already been struck are the test of good faith and trust,” he said, alluding to the legally binding divorce deal. “And without good faith and trust, building a future relationship is not going to be easy.”

Coveney also said the remaining 27 EU member state were ready for the new round of talks with Britain as ministers approved on Tuesday the bloc’s joint negotiating mandate. [nS8N2AH06C]

Britain’s current trade with the EU, in whose customs union and single market it will remain until a transition period expires on December 31st, is now made up of 45% exports and 53% of imports.

London says it is ready to accept tariffs and quotas similar to a deal the EU has with Canada, or trade on basic, less-beneficial World Trade Organization rules - which assume tariffs, quotas and cumbersome paperwork - from 2021, should a comprehensive trade deal prove elusive.

“If we cannot maintain this regulatory proximity, then we must ... apply tariffs or quotas,” France’s Europe Minister, Amelie de Montchalin, told reporters. “It’s not a position of revenge, it’s an economically rational position.”

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