Refusal to allow wide-ranging access for British lorries 'will harm EU more than UK'

Britain's haulage industry has said EU "intransigence" over granting British lorry drivers access to its market amounts to "shooting themselves in the foot."

It comes as a row erupted during the Brexit negotiations in Brussels, dampening expectations of a breakthrough this week.

The UK's chief negotiator, David Frost, will tell Brussels that refusal to allow wide-ranging access for British lorries is likely to harm the EU more than the UK, a Government source close to the negotiations said.

Europe's economies are struggling to emerge from the coronavirus crisis.

"If this is the outcome, then the intransigence of the EU means that they will be shooting themselves in the foot," said Road Haulage Association chief Richard Burnett.

"In terms of market access, the EUs position is far more damaging because of the balance, or imbalance, of trade. Eighty-five per cent of the volume of goods that come into the UK is moved by European hauliers – UK operators are responsible for the movement of only 15 per cent."

The UK wants its truckers to be allowed to make two drop-offs inside an EU member state, and three stops in total in the EU between member states, under industry rules known as "cabotage". The Government also wants hauliers to have transit rights when crossing into areas such as Turkey.

EU officials argue that the plan is too close to the current arrangement British lorry drivers enjoy. They also want assurance that the UK will agree to "level-playing field" rules for the sector, which cover such areas as the working conditions of drivers and technical requirements for vehicles.

Road haulage is one policy area that has repeatedly been singled out by the EU's chief Brexit negotiator, Michel Barnier, as "single market-like benefits".

"We are not asking for single market access," a Government source said. "It's worth remembering that EU hauliers carry out seven times more cabotage in the UK than UK hauliers carry out in the EU."

"It's a silly demand," said another UK source. "If the EU does not give access to UK truckers, the UK won't give the EU truckers access. It pretty much stops all viable trade, as no one will be able to deliver anything."

A spokesman for Mr Barnier declined to comment.

Some European governments, led by France, have long argued granting easy access to British lorries would create unfair competition within the bloc.

Negotiations over a post-Brexit trade deal have stalled over recent months, leaving both sides just four months to seal an agreement before the transition period ends on December 31.

Officials say fishing rights and state aid rules remain the two key sticking points.

Mr Frost has said he believes a deal can be done in September, but EU diplomats say it would need to be finalised in October if it is to be ratified by the end of this year.