Thursday, December 17, 2020

BREXIT TRADE TALKS - 'LAST STUMBLING BLOCKS REMAIN' SAYS MICHEL BARNIER

 BBC News 17 December 2020



"Good progress" has been made on a post-Brexit trade deal, but the "last stumbling blocks remain", says EU chief negotiator Michel Barnier.

Talks in Brussels are continuing, with two weeks to go before the UK leaves EU trading rules.

Earlier, Michael Gove said the UK government would do "everything to secure a deal" with the EU.

He also told MPs they could be called back from their Christmas break to approve a deal if one was agreed.

But leaders from the European Parliament said they would "not be rushed" into approving the deal at their end, and would have to see the text of any agreement by Sunday if they were to sign it off by the end of the year.

The European Commission President, Ursula von der Leyen, said on Wednesday a "narrow path" has opened up for the two sides to conclude a deal.

But Prime Minister Boris Johnson's spokesman said he still viewed no deal as "the most likely outcome".

The UK left the EU on 31 January, but has remained under many of its rules while the two sides negotiate a trade deal.

If an agreement is not reached by 31 December, the UK will have to trade with the EU on World Trade Organization rules - meaning taxes on goods being bought and sold between the two may be introduced, and could lead to higher prices.

'Later than wanted'

Tweeting after updating European Parliament leaders on the negotiations, Michel Barnier said: "In this final stretch of talks, transparency and unity are important as ever.

"Good progress, but last stumbling blocks remain. We will only sign a deal protecting EU interests and principles."

Mr Gove told the Commons "intensive talks" were continuing, with "both teams working day and night" to "go the extra mile" in seeking agreement.

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Analysis box by Nick Beake, Brussels correspondent

It's long been predicted that competition rules and fishing would be the last areas where compromise is found.

For Boris Johnson's government, being tied to EU regulations in perpetuity defeats the purpose of Brexit and makes a mockery of "taking back control".

For the European Union, it will not allow its internal market to be undermined by offering the UK unfair access.

Ursula von der Leyen has claimed the two sides have made a significant step by agreeing to a "strong mechanism" to ensure neither side lowers their environmental or social standards, but are yet to agree on how each could diverge from these levels in the future.

A good number of EU diplomats were quietly confident it was a matter of when, not if, EU access to UK fishing waters could be sorted. But it's proving trickier than they thought.

Sources tell me that Michel Barnier explained to EU ambassadors at the start of this week that if fishing is resolved, then a wider deal would quickly fall into place.

But there's no sign of a meeting of minds on fish, with the EU warning openly it may prove to be impossible.

But let's remember this is the most intense of negotiations and that every public proclamation from London or Brussels will be chosen to strengthening their respective hands in what are the final days and hours of talks.

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Pushed by his Conservative colleague Dehenna Davison on whether the UK would walk away if a trade deal was not "in the best interests of our country", Mr Gove replied: "My honourable friend is absolutely right."

He added: "Even if sometimes results are coming later than we might have wanted, I know we will be doing everything in order to secure a good free trade agreement in the interest of the whole United Kingdom."

"The electors... were clear when they voted to leave the European Union, that we need to do so by 31 December 31, and we will."

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The basics

  • Brexit happened but rules didn't change at once: The UK left the European Union on 31 January 2020, but leaders needed time to negotiate a deal for life afterwards - they got 11 months.
  • Talks are happening: The UK and the EU have until 31 December 2020 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.
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MPs are due to break up for Christmas later on Thursday, but Mr Gove confirmed they could be called back to the Commons if a deal is agreed between negotiators.

He said the government would "request that the House returns in order to make sure that we can legislate effectively".

Although there is only 14 days until the deadline, Mr Gove also said he believed there was enough time for the necessary legislation to pass before 31 December "to give businesses legal certainty".

But a number of opposition MPs raised issues already facing businesses waiting to discover the outcome of talks.

One Welsh MP, Jonathan Edwards, said: "I was contacted late last night by a businessman in my constituency who is reliant on imports from the continent and he can't find a haulage firm willing to carriage on his behalf due to the current delays at the ports.

"He's very concerned unless this issue was resolved his business would not survive into the new year."

Mr Gove said he would get in touch with the business concerned.