UK and EU leaders agree to resume Brexit talks

1. UK and EU leaders have agreed to resume talks to try to find an agreement on a post-Brexit trade deal
2. UK PM Boris Johnson and European Commission President Ursula von der Leyen spoke earlier
3. A joint statement issued afterwards said "significant differences" remain between the UK and EU
4. Three "critical issues" need to be resolved - fishing rights, competition rules and how a deal is enforced
5. The negotiating teams will meet in Brussels on Sunday
6. The UK left the EU on 31 January, but remains under its trading rules until the end of the year
7. If a deal is not agreed by then, tariffs - or taxes on goods - could come into force

All eyes on Brussels on Sunday

We're going to pause our live coverage now.

Before we leave you, here is a quick summary of what has happened with Brexit over the last 24 hours or so.

• UK and EU negotiators put talks to reach a post-Brexit trade deal on hold citing "significant divergences" between the two sides
• UK PM Boris Johnson and European Commission President Ursula von der Leyen held a phone call in a bid to break the deadlock
• Following the call they released a joint statement reiterating the "significant differences"
• However they also said "further effort should be undertaken" to try and bridge the gap
• They instructed their negotiators to resume talks in Brussels on Sunday
• And they agreed to speak again on Monday evening

So all eyes on Brussels tomorrow for any hint of a compromise from either side.

Reuters

UK chief Brexit negotiator David Frost and his EU counterpart Michel Barnier at start of the first round of post-Brexit talks in March 2020

And, so that's all from us.

On the team with you tonight were George Bowden, Hamish Mackay, Kate Whannel, Johanna Howitt and Joshua Nevett.

Thanks for joining us.

Could France veto a trade deal?

EPA

Macron has said he wants to maintain French access to British fishing waters

It’s worth remembering that, should a UK-EU trade deal materialise, it would need to be approved by the UK Parliament, and all 27 of the EU's member states.

As we reported earlier, France has been keen to ensure its fishing industry will not lose too much access to British waters.

On Friday, France's Europe minister Clément Beaune suggested his country could veto a deal if it was not in the country’s best interests.

"We must prepare for a risk of 'no deal' but this is not what we want,” Beaune told Europe 1.

“I still hope that we can have an agreement but we will not accept an agreement that is bad for France. If there was an agreement and it was not good, we would oppose it with a right of veto.”

But commentators say it is unlikely that France will veto any deal without support from other countries.

7 things changing in January and others that remain unresolved

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With talks set to resume on Sunday, uncertainty around what the UK and European Union's future relationship looks like continues.

But we already know some things will change from 1 January 2021.

From trips to Europe and queues at the border, to duty-free shopping and lots of new rules - here are some of the most important things you might want to think about (and a couple of others which are still unresolved).

Read more here.

German MEP to Johnson: Choose realism over ideology of Brexit

We can bring you some more reaction to today’s Brexit negotiations from Europe.

German MEP Manfred Weber - who is also the head of the European Parliament's conservative EPP grouping - has said: “we are running out of time” to agree a post-Brexit trade deal.

There is now less than a month left before the end of the so-called transition period, in which the UK remains under EU trading rules.

"Boris Johnson needs to make a choice between the ideology of Brexit and the realism of people's daily lives," Weber wrote on Twitter.

"In the middle of the Covid crisis we owe it to our citizens and businesses to find an agreement.

“It is now or never”.

Need jargon-busting help?

Getty

Transition period, withdrawal agreement, level playing field?

The Brexit process has been nothing if not jargon-heavy.

And it is unlikely to get any better over the next 48 hours.

If you need to brush up or are coming to this for the first time, here is our Brexit Jargon Buster.

Hanging on the telephone...

So this is what tonight is all about - UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen spoke on the phone in a bid to break the Brexit stalemate.

Instagram

Following the call they released this joint statement:

“In a phone call today on the on-going negotiations between the European Union and the United Kingdom, we welcomed the fact that progress has been achieved in many areas.

"Nevertheless, significant differences remain on three critical issues: level playing field, governance and fisheries.

"Both sides underlined that no agreement is feasible if these issues are not resolved.

“Whilst recognising the seriousness of these differences, we agreed that a further effort should be undertaken by our negotiating teams to assess whether they can be resolved.

“We are therefore instructing our chief negotiators to reconvene tomorrow in Brussels.

“We will speak again on Monday evening.”

Andrew Parson/ No 10 Downing Street

Analysis: It's not over yet...

Laura Kuenssberg

Political editor

Reuters

It’s not over, not yet.

The two sides in this complicated and drawn out process have agreed that it is worth trying one last time, to find a way through their profound differences.

But the statements from the prime minister and the EU chief, Ursula Von Der Leyen tonight, signal clearly that a trade deal is out of reach right now, spelling out that if no one budges in the next few days it’s simply not going to happen.

A feature of Brexit negotiations has often been the last minute stand off, the political emergency, before suddenly, lo and behold, a deal emerges from the wreckage.

By Monday night, that tradition may have been proven again.

Yet it seems there is a lot more to be done than ironing out a few last minute glitches.

The two sides are still stuck over the fundamental, political question, who really calls the shots.

It was Theresa May, who coined the phrase, ‘no deal is better than a bad deal’. In the next 48 hours, Boris Johnson and the European Union have to decide if they want to test if she was right.

Brexit voters won't tolerate talks extension - Farage

Reuters

More reaction to tonight's Brexit news...

As the trade negotiations prepare to resume on Sunday, Brexit Party leader and former UK MEP Nigel Farage said:

"I do hope that this lack of an agreement does not mean we are heading for an extension," he says.

"After four and a half years, Brexit voters won't tolerate that."

What could failure to reach a deal mean?

EPA

So, the UK and EU say there are "significant differences" between them, as they try to thrash out a post-Brexit future.

But what if they fail to agree a trade deal by 31 December?

The two sides will start to trade on World Trade Organisation rules.

In this scenario the UK and EU would impose tariffs – or taxes on imported goods.

The average EU tariff is pretty low (about 2.8% for non-agricultural products) but in some sectors tariffs can be quite high.

Cars could be taxed at 10% and some agricultural tariffs could be even higher – for example 35% for dairy products.

You can read more about what a no-deal scenario might mean here.

Brexit talks: A deadline looms

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• Brexit happened but rules didn't change at once: The UK left the European Union on 31 January but leaders needed time to negotiate a deal for life afterwards - they got 11 months
• Clock is ticking: The UK and the EU have until 31 December to agree a trade deal as well as other things, such as fishing rights
• If there is no deal: Border checks and taxes will be introduced for goods travelling between the UK and the EU. But deal or no deal, we will still see changes

What happens next?

Analysis: 'Not much optimism' in EU air

Katya Adler

Europe Editor

The EU side very tight-lipped, not much optimism in the air.

Sense in Brussels (again) that if talks succeed or not it largely depends on UK Prime Minister Boris Johnson and instructions he gives or - doesn’t give - to his chief negotiator, David Frost, ahead of talks resuming tomorrow.

Tiger is back in the tank, but unless the negotiators have been given a nod and wink by their bosses to make key compromises, what is the point of shoving negotiating teams together to go round same issues that have bedevilled talks for months?

So is it all about fish?

Reuters

Fisheries have proved to be a major sticking point in the negotiations

As the UK and EU attempt to hash out a post-Brexit trade deal, significant differences remain in three key areas: competition, governance and fisheries.

Fisheries has been a particularly touchy subject in France, which wants access for EU fishermen in UK waters.

But one Belgian Green MEP, Philippe Lamberts, told the BBC earlier that the issue had been given too much importance during the negotiations.

Although fishing is “a highly symbolic” industry, its value to the French and British economies should not be overstated, he said.

“The problem is the fishing issue has been overdone, both by France and the UK,” Lamberts said.

“We should cut it down to size, it should not be allowed to derail a good deal.”

Read more: Why France is raising the stakes over fishing

Labour's Reeves calls on both sides to reach deal

BBC

More reaction is coming in after tonight's announcement that EU-UK Brexit talks will continue.

Labour's Rachel Reeves, the shadow cabinet office minister, says both sides should "get on with reaching an agreement".

"The British people were promised a deal and, with time running out, we urge both sides to get on with reaching an agreement," she says.

“We can then focus on the job at hand which is securing the economy and rebuilding our country from the pandemic."

How did we get here?

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Need a quick recap?

Here's a reminder of how we got to this point...

The UK left the EU on 31 January but the rules didn’t change immediately because the UK has continued to follow EU trading rules. This will be the case until the "transition period" ends on 31 December.

The transition period - also know as the implementation period - was put in place to give EU and UK leaders time to negotiate a trade deal.

Negotiations have been going on for ten months, but the two sides remained far apart on fishing rights, competition rules and arrangements for policy any deal reached.

On Friday night UK and EU negotiators said there were "significant divergences" and announced that the talks would be paused.

And now, the talks are back on following a conversation between UK Prime Minister Boris Johnson and European Commission President Ursula Von Der Leyen.

What are the sticking points?

Chris Morris

BBC Reality Check

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The post-Brexit trade talks between the UK and the EU are going down to the wire.

They were never going to be easy. But what are the sticking points?

First of all, there is what is known as the level playing field. That means measures to ensure businesses on one side don't have an unfair advantage over their competitors on the other.

Then there is fisheries: the EU is pushing for maximum access for its boats to continue fishing in UK waters.

So could a basic deal be done in time? Read more from Chris here.

Reaction to Brexit talks resumption

Reuters

EU chief negotiator Michel Barnier

A bit of reaction has been coming in to the news that the Brexit talks are resuming:

The European Commission's chief negotiator Michel Barnier tweeted: "We will see if there is a way forward. Work continues tomorrow."

And Ireland's Taoiseach (or prime minister) Micheál Martin tweeted: "I welcome the fact that negotiators will resume their discussions on an EU and UK trade deal in Brussels tomorrow.

"An agreement is in everyone's best interests. Every effort should be made to reach a deal."

Reuters

Taoiseach Micheál Martin

What did the leaders say?

No 10

Boris Johnson in a call with Ursula Von Der Leyen

Here is a full transcript of joint statement release by the two leaders:

“In a phone call today on the on-going negotiations between the European Union and the United Kingdom, we welcomed the fact that progress has been achieved in many areas.

"Nevertheless, significant differences remain on three critical issues: level playing field, governance and fisheries.

"Both sides underlined that no agreement is feasible if these issues are not resolved.

“Whilst recognising the seriousness of these differences, we agreed that a further effort should be undertaken by our negotiating teams to assess whether they can be resolved.

“We are therefore instructing our chief negotiators to reconvene tomorrow in Brussels.

“We will speak again on Monday evening.”

Post-Brexit trade talks to resume

Reuters

Talks to reach a post-Brexit trade deal are back on, having been put on hold on Friday night.

The development comes after a phone call between UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen.

In a joint statement, the leaders agreed there were “significant differences” with fishing rights, rules on state subsidies for business and arrangements for policing remaining the key sticking points.

They said “further effort” was needed and instructed their chief negotiators to resume talks on Sunday.

Mr Johnson and Mrs von der Leyen will speak again on Monday evening.