Brexit: UK-EU trade talks continue as 'sticking points' remain

Media caption,

George Eustice: "There is still a deal to be done... the end of last week was quite a setback"

The UK and EU have resumed talks on post-Brexit trade, with a minister telling the BBC there is "still a deal to be done" despite time running short.

Environment Secretary George Eustice said "sticking points" on fishing and business rules remained.

UK chief negotiator Lord Frost is taking part in discussions with EU counterpart Michel Barnier in Brussels.

EU sources told the BBC, external an agreement on fishing was close but a No 10 source said there had been "no breakthrough".

The UK government source told the BBC on Sunday evening: "Nothing new has been achieved on this today."

A senior EU diplomat told the BBC that fishing "was definitely not the issue the talks are stuck on".

The diplomat added there was still a dispute over what measures there should be to ensure a "level playing field" for businesses on both sides and how to enforce agreed standards.

Ireland's foreign minister has said it is "in everybody's interest" to reach an agreement soon.

Border checks and taxes will be introduced for goods travelling between the UK and the EU if a trade deal is not reached and ratified by the end of the year.

Mr Eustice told BBC One's Andrew Marr Show: "There's still a deal to be done, but there's no denying that the end of last week was quite a setback."

He added: "The sticking points remain - quite fundamental ones. We've been clear all along that we can only do an agreement if it respects our sovereignty."

Mr Eustice also said: "I think we probably are now in the final few days in terms of deciding whether there can be an agreement."

After receiving instructions from their respective corners, the two chief negotiators embarked on what could be one of the final rounds of this increasingly bruising encounter.

On Sunday evening, several EU diplomats told the BBC the two sides were close to resolving their disagreements over EU access to UK fishing waters. But a British government source said nothing new had been achieved.

If fishing were to be resolved it would still leave competition rules - including future government subsidies - and the policing of a deal as the remaining two hurdles to clear. Each has the potential to derail the process.

First thing Monday morning, Michel Barnier will brief ambassadors from the 27 member states.

The last time he did so, he was warned by a handful of anxious countries against giving ground to the British at the final moment and France announced it would veto a bad deal.

Arriving in Brussels, Lord Frost said: "We're working very hard to try and get a deal. We're going to see what happens in negotiations today."

Sunday's meeting follows talks between Prime Minister Boris Johnson and European Commission President Ursula von der Leyen on Saturday.

In a joint statement, external afterwards they said fishing rights, competition rules and how any deal would be enforced were still causing problems, and that "no agreement is feasible if these issues are not resolved".

They have agreed to talk again on Monday evening.

Brexit - The basics

  • 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

  • Talks are on again: 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

Speaking to Ireland's Sunday Independent newspaper, Irish Foreign Minister Simon Coveney said:, external "We are more likely to get a deal than not because I think it's in everybody's interest."

He added that reports the EU had hardened its negotiating stance at France's behest were inaccurate.

But Mr Eustice said revised demands from the bloc on fishing rights last week meant talks had "gone backwards".

He added the UK was "asking for a normal type of trade agreement such as the one [the EU] put together with Canada" and that this was "really not too much to ask".

The EU wants this deal. A no-deal scenario would be costly for EU businesses - a nightmare for European fishing communities, largely dependent on access to UK waters.

So the German car industry and others must be lobbying EU governments hard to use these two extra days of talks to finally seal the deal, right?

Wrong.

The UK government isn't the only one briefing that no deal "is better than a bad deal". EU countries that do most trade with the UK, like France, the Netherlands and Belgium, say that too.

This week they piled the pressure on those representing them in negotiations not to give "too much" away. France threatens to use its veto, while Germany speaks softly of red lines and compromise.

The tone is different; the message the same. The EU priority is to protect its single market in a deal with the UK.

It insists the government must sign up to "fair competition rules" and an agreed method to enforce them, before it gets better access to the single market than any other non-EU country not closely aligned to the bloc.

During this last-minute negotiating push, EU governments say they're mindful not to sign up to a deal in a panicked rush.

If push comes to shove, they say, they prefer the short-term pain of no deal, in order to protect their longer-term interests: not exposing their businesses to what they view as unfair competition in their own single market.

But EU fingers are tightly crossed a compromise can still be found.

Mr Barnier tweeted after Saturday's statement was published, saying: "We will see if there is a way forward."

But, even if the two sides agree a deal, there are still obstacles to overcome.

Any agreement will need to be turned into legal text and translated into all EU languages, then ratified by the European Parliament.

The UK government is likely to introduce legislation implementing parts of any deal reached, which MPs will be able to vote on.

For Labour, shadow Cabinet Office minister Rachel Reeves told the Andrew Marr Show the government "has to deliver" a deal but her party would "have to see the content" before backing or rejecting it.

The 27 EU national parliaments could also need to ratify an agreement - depending on the actual contents of the deal.

The week to come

And on Monday, the UK Internal Market Bill will return to the House of Commons.

Certain clauses could allow the government to break international law, by overriding elements of the original treaty with the EU for Brexit - the withdrawal agreement.

The EU is unhappy with it, as is the House of Lords, which voted to scrap those clauses of the bill.

But the government is still backing its measures, which could cause tensions in the trade talks, and it is expected to push them through the Commons on Monday night.

The Taxation (Post-Transition Period) Bill - which contains more powers to break the legal requirements of the withdrawal agreement - will also return to the Commons this week.