Brexit: UK caves in to EU’s demand to settle divorce terms before future trade deals on first day of talks - Independent

Brexit: UK caves in to EU’s demand to settle divorce terms before future trade deals on first day of talks

David Davis told the 'weakness of your negotiating position' has been exposed - within hours of the talks opening

Britain caved in to the EU on the opening day of the Brexit talks, when it agreed to settle its “divorce” before trying to negotiate a future trade deal.

In a major defeat, Brexit Secretary David Davis was forced to drop his central demand for the two strands of the negotiations to be staged in parallel, within hours of arriving in Brussels.

Last month, Mr Davis vowed to wage the “row of the summer” to secure immediate talks on a free trade agreement – predicting an early collapse if the EU refused to give way.

But both sides have now agreed to set up working groups on EU citizens’ rights, the size of Britain’s “divorce bill” and borders – but not, crucially, future trade.

At a press conference, Mr Davis was forced to concede that the talks would only move on to trade when the EU decided “enough progress” had been made on its three priorities. Asked if the “weakness of your negotiating position” had been exposed, Mr Davis put on a brave face, claiming: “It’s not when it starts but how it finishes that matters.”

Ahead of the opening day, the UK had also promised to unveil a “generous offer” to end the row over the future rights of three million EU citizens in the UK and 1.2 million British ex-pats in the EU.

However, Mr Davis said the offer would not be published until next Monday, after Theresa May briefs EU leaders on her intentions at a summit at the end of this week. Further rows are expected over the cut-off date for granting rights and whether EU citizens can bring in relatives in perpetuity, including from third countries.

Significantly, Mr Davis said he would tell Labour and other parties about the Government’s plans in advance – reflecting its weak position, with no Commons majority.

Speaking in Brussels, Michel Barnier, the EU's chief Brexit negotiator, made clear where the power lay in the talks when he said Britain had bowed to the EU’s demands for two phases.

“We have to commit ourselves now mutually to guarantee rights to citizens on either side of the Channel so they can continue their lives as in the past,” Mr Barnier said.

“We have to clear the accounts and we have to honour our mutual financial commitments. We also have to find solutions to maintaining all the commitments of the Good Friday Agreement. “It is by lifting uncertainties around these issues that we will lay the foundation and create the climate of trust which will enable us to build a new partnership.”