The United Kingdom will not pay its divorce bill of 40 to 45 billion to the European Union if it fails to conclude a trade deal with Brussels, British Brexit Minister David Davis said on Sunday.

The two sides reached a compromise on the principles of the Brexit financial deal on Friday as part of an agreement on the terms of the UK’s departure from the EU from the end of March 2019, paving the way for discussions over its future business relationship.

Asked if London would foot the bill in the absence of a trade deal, David Davis responded on the BBC that this would be “conditional on getting a transition period” and “conditional on a trade deal.”

“No deal means we won’t pay,” he insisted, estimating however that the chances of London leaving the European fold without a trade deal had “diminished radically.”

In the absence of a trade agreement, the United Kingdom would be subject to the rules of the World Trade Organization (WTO), synonymous with customs and tariff barriers.

“It is not a credible scenario”

David Davis stressed that his comments were in line with the position of Prime Minister Theresa May, whose spokesman said on Wednesday that payment of the bill will depend “on establishing a deep and special future relationship with the EU.”

However, they contradict the statements of the British Finance Minister, Philip Hammond, who assured that London would meet its financial commitments to the EU even in the absence of a trade agreement.

“Nothing is finalized until everything is finalized in this negotiation. But it seems inconceivable to me that as a nation we shirk an obligation that we recognized as such,” he told a parliamentary committee on Wednesday.

“This is not a credible scenario. This is not the kind of country we are. Frankly, this would not make us a credible partner for future international agreements,” he added.

El Diario / AFP