European Union chief Brexit negotiator Michel Barnier, right, speaks with the British Prime Minister's Europe adviser David Frost during the start of the first round of post -Brexit trade talks between the EU and the UK, at EU headquarters in Brussels, March 2, 2020. Long-awaited trade talks between the EU and Britain kick off Monday amid deep tensions over Prime Minister Boris Johnson's threat to walk away from the talks if not enough progress is made within four months. (OLIVIER HOSLET. POOL PHOTO VIA AP)

BRUSSELS / LONDON - The European Union (EU) and Britain started the negotiations for a new partnership here on Monday. 

The talks began with a bilateral meeting between the chief negotiators, the EU's Michel Barnier and the UK's David Frost, according to the audiovisual service website of the European Commission.

With around 100 British officials participating, the first round of negotiations will cover 11 areas including trade in goods and services, energy and transport, as the agenda showed on the UK government's website. 

We approach these negotiations in a constructive spirit. We want to agree an ambitious and fair partnership. We will respect our prior joint commitments 

Michel Barnier, European Union chief Brexit negotiator

"We approach these negotiations in a constructive spirit. We want to agree an ambitious and fair partnership. We will respect our prior joint commitments," said Barnier on Twitter.

The first round of negotiations is set to last until Thursday.

Britain on Monday unveiled its mandate for trade talks with the United States, with Prime Minister Boris Johnson vowing to drive a hard bargain in negotiations that are set to test the two allies’ “special relationship”.

After leaving the EU in January, Johnson wants to pursue a trade deal with Washington to try not only to champion Britain’s new independence, but also to put pressure on the bloc in separate talks on a future relationship.

As a negotiating team heads to Brussels to start those discussions, the government set out its mandate for talks with the United States, warning that London would walk away if its demands are not met.

Britain said it wanted to achieve “huge gains” by removing barriers to trade, but that its much-loved National Health Service (NHS) would not be on the table in talks, and that its food standards would be maintained.

“We have the best negotiators in the business and of course, we’re going to drive a hard bargain to boost British industry,” Johnson said. “Most importantly, this transatlantic trade deal will reflect the unique closeness of our two great nations.”

Jeff Emerson, spokesman for the US Trade Representative’s Office, said Washington was reviewing Britain’s negotiating objectives and was looking forward to starting talks.

“The United States remains committed to negotiating an ambitious trade agreement with the United Kingdom that is good for both countries,” he said.

Britain’s mandate hinted London could reconsider its plans to introduce the tax on big tech companies like Google, Facebook and Amazon in April after criticism by Washington.

A spokesman for Johnson said the government’s policy had not changed, adding that while ministers were working to find a global solution, “we have put forward proposals for a digital services tax”.

The government said its analysis showed a deal with the United States could boost transatlantic trade by 15.3 billion pounds (US$19.61 billion) over 15 years and increase the size of the British economy by 0.16 percent.

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Johnson, the face of Britain’s campaign to leave the EU, has repeatedly said the ability to strike new trade deals with other countries is a major benefit of Brexit.

But opposition political parties said the modest potential boost to gross domestic product would not make up for the economic hit Britain will take from leaving the EU.

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“Today’s analysis is clear: the gains from the best-case trade deal with Donald Trump will not come close to outweighing what we expect to lose from leaving the EU,” said Sarah Olney, Liberal Democrat spokesperson for International Trade.

The United States is currently Britain’s biggest trading partner after the EU, accounting for nearly 19 percent of all its exports in 2018 and 11 percent of imports. By comparison, the EU accounted for 45 percent of all UK exports and 53 percent of UK imports.

That could set the two sides on a collision course, putting additional pressure on a relationship already strained by London’s decision to allow China’s Huawei a limited role in its 5G mobile network, as well as a proposed digital services tax.

The government said manufacturers of cars, ceramics, food and drinks, and professional services, including architects and lawyers, would be among the biggest winners from the trade deal.

“Trading Scottish smoked salmon for Stetson hats, we will deliver lower prices and more choice for our shoppers,” Johnson said.  

Both sides hope a deal can be reached as soon as this year, but there are many hurdles.

The government reiterated that the NHS was “not for sale” - addressing criticism that a deal could let private US healthcare providers into Britain’s state-funded health system.

It also vowed to uphold high standards on food safety and animal welfare amid fears from farmers that the government will allow US-produced chlorine-washed chicken and hormone-treated beef into Britain.

“In a trade deal with the US, we will not diminish our food safety standards and we will also not put the NHS on the table,” British trade minister Liz Truss said. “If we don’t get the deal we want we will be prepared to walk away.”

Speaking later to parliament, she said she wanted the two allies to agree quickly to remove retaliatory tariffs on British and American products related to the US-EU aircraft subsidy dispute “to show goodwill”.

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Washington’s negotiating objectives, published last year, include pressing for full market access for US pharmaceutical products and medical devices, which would require changes to NHS pricing restrictions and could increase the cost of drugs.

Britain’s Chief Trade Negotiation Adviser, Crawford Falconer, who previously worked as New Zealand’s chief negotiator, will represent the government in the talks, supported by dozens of officials.