Furious Eurosceptics said Downing Street had committed the UK to “slavery” as the bumper 585-page Withdrawal Agreement was published shortly after the PM addressed the nation.
It confirmed the UK could extend a post-Brexit transition phase beyond New Year’s Eve 2020 — at a cost of billions more — if it needed more time to thrash out a trade deal.
And MPs were alarmed to see the document detailed the transition could be extended for an indefinite date of “[31 December 20XX]”.
A final date will thrashed out by next month’s EU Council with sources saying last night it could be a matter of months or “few years”.
It also revealed Britain would not be able to walk away from the Irish border backstop – a post Brexit customs insurance plan – unless it also had permission from the EU.
The agreement separately detailed how Britain would have to accept the supremacy of EU laws on everything from agriculture to VAT during that time.
Last night arch-Eurosceptic Jacob Rees-Mogg told The Sun: “It’s the worst middle-muddle fiddle-fuddle.
“We are stuck under the control of the EU with no influence.
“And it’s precisely what the Prime Minister said she would not do. It’s swapped vassalage for slavery.”
Last night it appeared Theresa May had chucked elements of her controversial Chequers deal to get the Withdrawal Agreement over the line.
Under the Chequers plan, the Government had argued for a single Common Rulebook for laws on a future trade deal.
But last night a senior Government source refused to say if she was still pushing for it, saying: “We may get frictionless trade through another way.”
It could open the door for the UK to pursue a Canada-style free trade, championed by Boris Johnson.
The major climbdown by No10 emerged when London and Brussels published a political declaration setting out an outline of a future trading relationship alongside the divorce deal.
Despite only being seven pages long, it spelt out a joint aspiration for the UK-EU’s future economic relationship.
The draft agreement will now be the subject of intense negotiation over the next ten days before it is forecast to get the nod at an expected emergency EU summit on Sunday November 25.
It sets ambitious goals for zero tariffs, no fees and no charges for all goods moving between the EU and the UK.
On citizens and tourists, it proposes visa-free travel for short-term visits for Brits visiting Europe and Europeans coming to the UK.
The draft agreement proposes a new fisheries deal.
It also covers agreements in transport and energy, and says the future relationship would also cover justice, security and foreign policy co-operation.
The whole document is based on the EU’s concept of the closer the cooperation and the more sovereignty is pooled, the better the access to Europe’s single market.
Brexiteers have campaigned for years to free Britain from the stranglehold of the European Court of Justice.
But the Withdrawal Document makes 63 references to the future role of the hated ECJ.
Downing Street will have to give six months’ notice that it wants to walk away from the backstop.
The request would go before a joint committee made up of two UK judges, two from the EU and one independent trade expert.
If the two sides cannot agree on who the independent trade expert should be, they could “draw lots”.
The Withdrawal Agreement confirms Britain will have to pay an estimated £39billion “divorce bill”. It reflects almost all of the detail of a deal outlined in principle a year ago when Theresa May made a pre-dawn dash to Brussels.
The UK will as expected give lifetime residency to an estimated 3.5 million EU citizens currently living here.
Their close family members will also be given the opportunity to have ‘Settled Status’ in Brexit Britain.
Some 1.2 million British expats will be given the similar commitment on the Continent.
Britain saw off a bid by Madrid and Brussels to use Brexit to open up fresh questions about Gibraltar’s sovereignty.
Stephen Martin, director general of the Institute of Directors, said: “We urge all politicians to think long and hard about how they react to this first-stage agreement.
“Leaving the EU without a deal is a very bad outcome for business, workers and consumers.”
The £39billion divorce bill
SOME £39billion of taxpayers’ cash will be handed over to Brussels in a financial settlement agreed by Theresa May and her negotiating team.
Britain will initially pay around £16billion — reflecting EU membership fees for the post-Brexit transition phase next year and in 2020.
The rest is made up of obligations and legal commitments from the UK’s 45-year membership such as part-funding Eurocrat officials’ pensions.
Under last night’s deal, the EU will update the UK’s outstanding obligations by March 31 of each year starting from 2022.
Any missed payments will accrue interest. The UK will get cash back for its “assets” which include its share of the European Investment Bank.
The Treasury’s independent forecaster had claimed payments could last all the way up to 2064 with £6.6billion handed over in 2021, £5billion in 2022 and £2.7billion in 2023.
Britain will not pay relocation costs of two EU agencies — the European Medicines Agency and the European Banking Authority which will leave the UK for the Continent.
EU and ex-pat citizen's rights
THE BREXIT agreement guarantees residence and social security rights to an estimated 3.5million EU nationals living in the UK.
And Brussels is thought to have made a similar pledge to the 1.2million or so British expats living on the Continent.
Theresa May had already declared that any EU citizen living in the UK could apply for “Settled Status” in Brexit Britain right up until the end of the “transition phase” on New Year’s Eve in 2020.
Those who arrive before 2021 can have temporary leave to remain while they build up the five years they need for Settled Status.
Under the plans, those EU nationals will also have a “lifetime right” to bring their spouse, their parents and grandparents to the UK at any point.
EU nationals can also bring in girlfriends or boyfriends if they can prove they have been a “durable partner” for two years.
Britain had already controversially conceded it would follow EU case law in the run-up to Brexit on any legal cases regarding EU nationals.
European judges rule on dispute
EUROPEAN judges will have the ultimate say on most disputes relating to the Withdrawal Agreement — making it one of the most contentious parts.
A Joint Committee will be set up by the end of the transition period — comprising of two judges from each of the UK and EU and a fifth independent.
It will aim to resolve all disputes but if no solution is agreed on any dispute in three months then an arbitration panel will be set up to decide.
But any dispute that involves a concept of EU law will go straight to the European Court of Justice to give a ruling on the question.
This will trigger fears that all contentious decisions will be ruled upon by European judges — because most of the Withdrawal Agreement could be interpreted to involve “a concept of union law”.
The arbitration panels that will resolve disputes that are not deemed to involve EU law will be made up of five judges.
These will be drawn from a list of 25 judges.
The UK and EU will nominate 10 each, with the remaining five independent.
Chequers Trade plan replaced
THERESA May last night abandoned her bitterly criticised Chequers plan for a future trade deal to agree a “free trade area” for goods instead.
The major climbdown by No10 emerged when London and Brussels published a political declaration setting out an outline of a future trading relationship.
At seven pages long, it spelt out a joint aspiration for the UK-EU’s future economic relationship.
It suggests the deal is neither the Canada-style option favoured by the hardline Brexiteers nor the closer Norway model of single-market alignment.
It will be “a free-trade area combining deep regulatory and customs co-operation”.
It sets ambitious goals for zero tariffs, no fees and no charges for all goods moving between the EU and the UK.
Alongside this are proposals for a “level playing field” on social, employment and environment standards in order to keep trade as frictionless and smooth as possible.
It proposes a new fisheries deal governing access to each other’s waters and quota shares.
The Irish 'backstop'
THE controversial “backstop” insurance plan will only kick in after December 2020 if the EU and UK decide not to extend the transition phase.
In July 2020, both sides can chose to extend the exit process one time only.
The draft withdrawal agreement contained no fix date or “unilateral” way for the UK to collapse the controversial insurance measure that will keep the UK locked to Brussels trade rules for years.
Once it kicks in, either side must give six months notice to end it by mutual agreement.
If both sides do not agree a new trade deal that keeps the Northern Irish border open, then a five-strong panel of judges and experts will be called in.
We can appeal to an independent panel to rule on whether Brussels is trying to trap the UK inside a never-ending customs union.
However the UK will sign up to “level playing field rules” to stop us getting an economic advantage over the EU by cutting rules or taxes.
Future of Gibraltar and Cyprus
BRITAIN saw off an attempt by Madrid and Brussels to use Brexit to open up further questions about the sovereignty of Gibraltar.
The Rock is covered by exactly the same divorce terms as the UK mainland.
But a decision on whether to let the Spanish share the access to Gibraltar airport has been kicked into the long grass.
Also Brexit questions over keeping our RAF bases in Cyprus have also been put to bed.
Brussels raised the possibility of hiving off Gibraltar and possibly excluding it from any transition phase because of its border with Spain.
But the withdrawal agreement makes clear this is not the case and any mention of the UK also covers the territory.
There will however be joint committees set up between the UK, Spain and Gibraltarian governments to tackle smuggling of petrol and alcohol over the border after Brexit.
And there will also be joint measures to tackle money-laundering and tax avoidance.
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