Another thought, if final deal can’t be agreed, does this mean these ‘agreements’ would be thrown out of the window?
They say not, part of this was an assurance about what would happen in Ireland in the event of no deal. But how would this be enforceable? I genuinely dont know Id be interested if anyone can explain the process.
Take a hypothetical, extreme kind of scenario to make the point. Imagine we made these concessions (eg paying £50bn or whatever, after we claimed there would be no significant bill at all) in order to open talks about the future trade relationship.
Now imagine Barnier turns round and tells us we can whistle for a special trade deal. Say Norway is rejected (because we dont control our borders) and Canada is also rejected (because it doesnt include services, and is therefore about as useful to us in the UK as a chocolate tea pot.) We want something of our own, something bespoke, something crafted to suit our needs. But the EU says no. We have to take one of the options on the table, but neither option is suitable. The Brexit team try to negotiate something but get nowhere. Barnier says if it isnt one of the off-the-shelf deals (Norway or Canada) it is WTO terms.
In that case, would the UK feel compelled to honour the terms of the agreement sketched out thus far in the first stage?
I think each element of the agreement would be treated differently. The bill I think we would end up paying because to not pay would be a default which would be bad for our own economy. There might be an independent arbitration to ascertain exactly what our remaining liabilities were, in terms of things we signed up to while we were members. I heard Davis say he thought an independent body would come up with a number much lower than the EU is coming up with. I have no idea if that is true but I imagine it could be. Either way, I imagine we would pay something so as to avoid defaulting on our debts which would affect market access.
But the rest of it would be much less certain. I dont see what holds the UK to assurances it has made about Ireland, for example. The principle is that nothing is agreed until everything is agreed. So the agreement we reached today only means anything as the basis for future agreements. What we agree in stage 2 is valid with the condition that what was agreed in stage 1 is honoured. They can say it works the other way around too (if everything goes tits up in stage 2 we all fall back on what we agreed today) but I dont see how that can be the case. Its just words as far as Im concerned.