As it happened: Brexit talks fail to break deadlock

1. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen say they want an "overview of the remaining differences" in EU-UK trade talks
2. In a joint statement following a phone call on Monday, the two leaders said those differences will be "discussed in person"
3. Boris Johnson says he will go to Brussels for a "physical meeting" in the coming days
4. Three "critical issues" need to be resolved as talks continue in Brussels - fishing rights, government support for industry and how a deal is enforced
5. The negotiating teams are trying to find an agreement on the future trading relationship between the UK and the EU
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
8. The boss of Toyota's European business has warned that a no-deal Brexit could make its UK plants uncompetitive
9. Dr Johan van Zyl said such an outcome would create a "very negative investment environment" in the UK and be "very, very negative" for his business

Goodnight

PA Media

Thanks for following along with us today.

The team at your service were Jennifer Scott, Lucy Webster, Paul Seddon, and Rob Corp, with Johanna Howitt in the editor's chair.

A final recap

We're going to pause our live coverage of today's Brexit developments.

Before we leave you, here is a quick summary of the day's events:

• There has been no agreement between the UK and EU on how to unlock the Brexit trade talks
• UK Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen will meet in Brussels in the coming days to try to salvage a deal
• A senior UK government source said the talks are "in the same position now as they were on Friday."
• In a joint statement released after the two leader spoke on the telephone for the second time in 48 hours, they said there are still "significant difference on three critical issues: level playing field, governance and fisheries".
• The UK left the EU on 31 January, but remains under its trading rules until the end of the year
• If a deal is not agreed by then, tariffs - or taxes on goods - could come in to force

Still work to do for negotiators

Reuters

Lord David Frost (left) and Michel Barnier (right) have led negotiating teams for the UK and EU

We are now all waiting for the big meeting between Johnson and Von der Leyen, but it isn't all over for the negotiating teams yet.

After almost 10 months of talks, the EU's Michel Barnier and the UK's Lord David Frost will meet again to prepare the overview of the difficulties that still remain between the two sides.

We understand that meeting will take place tomorrow, before they hand it over to their political leaders.

Labour: Securing a deal is critical to Britain

PA Media

Reaching to the earlier joint statement from Boris Johnson and Ursula von der Leyen, Labour has urged both sides to reach an agreement.

Shadow Cabinet Office minister, Rachel Reeves, said: “Day after day we see this government failing to deliver their promises to the British people and failing to get the deal they promised done.

“Securing a deal is critical to the British national interest for jobs and security."

She called on the teams "even at this 11th hour... to get on with reaching an agreement", adding: "We can then focus on the job at hand which is securing the economy and rebuilding our country from the pandemic.”

EU unity on Brexit talks beginning to fray

Katya Adler

Europe Editor

We've had the same big three sticking points between the two sides for months now.

Many trade negotiators were wondering what the point was of sending negotiators back into the room when they are so well rehearsed in each other's arguments.

What is needed to break the deadlock right now is the political will from both sides - and that need to come from the bosses.

It will be European Commission President Ursula von der Leyen who will sit with Boris Johnson - because EU countries have tasked the Commission with negotiating on their behalf.

But she does not have a free hand here - because the Commission is the conduit for the interests of the member states.

When it's come to Brexit, they have kept a sense of unity you do not see normally. But now that we're getting to five to midnight, that unity is beginning to fray at the edges.

'Things looking very tricky,' says UK government source

A senior UK government source has said the trade talks are "in the same position now as they were on Friday".

"We have made no tangible progress. It’s clear this must now continue politically.

"Whilst we do not consider this process to be closed, things are looking very tricky and there’s every chance we are not going to get there.”

Andrew Parsons/ NO 10 Downing Street

UK Prime Minister Boris Johnson pictured earlier during his phone call with EU Commission President Ursula von der Leyen

Johnson and von der Leyen will meet in Brussels

The statement that dropped a few minute ago also left a few question marks, and while there is lots we cannot answer yet about the future of a trade deal, one thing has been cleared up.

Von der Leyen's chief spokesman, Eric Mamer, has confirmed his boss and the prime minister will meet in person in Brussels - not their negotiating teams.

One question down, just a few more to go... starting with when exactly the meeting may be...?

PM tweets...

Brexit talks head for political showdown

Nick Eardley

Political correspondent

It sounds like we are heading for a political showdown later this week.

Boris Johnson will at some point be heading to Brussels for the real crunch moment - to discuss whether remaining issues can be overcome.

Talks between the negotiating teams matter - but ultimately, whether to sign on the dotted line is a political decision.

It is not completely clear when the final deadline is.

But Thursday is a big day, because some on the European side are adamant they need something to discuss when EU leaders are due to meet at their summit on Thursday.

What are the sticking points again?

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So, Boris Johnson and Ursula von der Leyen, have repeated there are still "significant difference on three critical issues" in the Brexit trade talks.

Here's a quick reminder of the three issues they seem to be stuck on:

• The’ level playing field’ - this disagreement is over the extent to which the UK will follow EU rules, for example on government support for businesses and industry and workers’ rights, once it has left the transition period
• Governance - the two sides need to agree how any deal will be enforced and how disputes will be resolved
• Fishing - The UK wants its fishermen to have rights to all the fish in its waters, whereas the EU wants to maintain the quota system that shares these fish among member states

BreakingJoint statement from Johnson and Von der Leyen

A joint statement has just been released from UK Prime Minister Boris Johnson and European Commission President Ursula von der Leyen.

It says:

“As agreed on Saturday, we took stock today of the ongoing negotiations. We agreed that the conditions for finalising an agreement are not there due to the remaining significant differences on three critical issues: level playing field, governance and fisheries.

“We asked our chief negotiators and their teams to prepare an overview of the remaining differences to be discussed in a physical meeting in Brussels in the coming days.”

No 10 Downing Street/ European Commission

Boris Johnson and Urusual von der Leyen spoke earlier today

Pound sinks as UK-EU trade talks enter 'critical stage'

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Bad news from The City...

The pound has fallen to its lowest level against the Euro in more than six weeks, as traders reacted to the growing prospect of a no-deal Brexit.

In late afternoon trading in London, sterling was about 1% down against the single European currency at €1.098.

And it also lost ground against the dollar, falling 0.83% to $1.3325.

You can read more about the glum news here.

Government Brexit bill from a 'parallel universe' - Miliband

BBC

Among the MPs speaking in the Commons over that controversial bill is Ed Miliband - remember him?

The former Labour leader is now back on the front bench as the party's shadow business secretary.

He begins by saying he feels like he is living in a "parallel universe" to the government, who continues to defend its position on the bill.

He says it has been "absolutely savaged" by members from across Parliament, including Tory grandees.

Miliband adds: "There is one thing this whole sorry saga has shown the world beyond any doubt - that with this government their word is not their bond.

"They cannot be trusted because they are willing to rip up international agreements they made less than a year ago."

MPs debate government power over Brexit laws

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In the background of the post-Brexit trade talks, MPs are currently debating the government's Internal Market Bill, which caused controversy when it was first published.

The bill was initially passed by MPs, but it faced a bumpier ride when it moved to the House of Lords.

Sections in the bill which, if they became UK law, would break international law.

Peers made a number of changes and removed sections which would have given the government powers to override parts of the Brexit "divorce deal" - otherwise known as the withdrawal agreement.

Ministers now say they would be willing to remove controversial clauses from the bill, but only if a trade deal is agreed between the UK and the EU in the coming days.

The bill has to be approved by both houses in Parliament, so if MPs rejected the peers' changes, it will return to the House of Lords, who will then decide whether or not to reinsert their amendments - a process called "the ping pong stage".

Read more about the row here

German and French leaders talk Brexit during teleconference

EBS

Charles Michel hosted the teleconference earlier.

Meanwhile, German Chancellor Angela Merkel and French President Emmanuel Macron have discussed Brexit during a scheduled teleconference ahead of Thursday's two-day EU summit .

It is understood the leaders discussed the latest state of talks with European Council President Charles Michel and EU Commission President Ursula von der Leyen.

Post-Brexit trade is not on the provisional agenda for the summit due to take place in Brussels - but it comes at a crucial time for the talks, meaning it will be hard to ignore.

Leaders' call ends

There are conflicting reports across social media about the status of the call between Johnson and Von der Leyen.

But BBC political editor Laura Kuenssberg says it has come to an end...

Analysis: The uncertainty continues... for now...

Jessica Parker

BBC political correspondent

Another lengthy phone call appears to be over.

It isn’t clear if Boris Johnson and Ursula von der Leyen will dial each other again later.

So the wait, and uncertainty, goes on.

These discussions amount to a top level stock takes at a crucial moment.

After months and months of talks and all the to and fro of the last two days, these leaders must, again, assess whether the negotiations are still worth pursuing.

So what do we know about Brexit?

Getty Images

We already know some things that 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).

Seven things that will change in January and others that remain unresolved

Are they on a break?

Rumours are abound that Boris Johnson and Ursula von der Leyen are "on a break" - not like that, it has just been a long phone call.

We have had a picture from the European Commission of their president talking to the prime minister.

But we are still waiting for more detail of their discussion...

We'll bring you any updates as soon as we get them.

European Commission

Toyota warns no-deal outcome will be 'very negative'

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Some businesses have expressed their fears about a no-deal outcome between the UK and the EU.

The boss of Toyota's European business, Johan van Zyl, said it would make the firm's UK plants uncompetitive, telling the BBC it would create a "very negative investment environment" in Britain and be "very, very negative" for his business.

Toyota has two plants in the UK, which employ about 3,000 people in total.

But van Zyl said no decisions on the future of its UK plants - a car factory at Burnaston in Derbyshire and an engine facility at Deeside in North Wales - could be taken until the outcome of trade talks was known.

You can read more about his comments here.