Brexit: serious differences over trade deal, say UK and EU

The UK and the EU have said serious differences persist over a post-Brexit trade deal after the latest negotiations in Brussels.

EU negotiator Michel Barnier said the bloc’s position needed to be “better understood and respected” by the UK in order to reach an agreement.

His British counterpart David Frost said the “significant” disagreement remained on “a number of important issues.”

The UK ruled out extending the December deadline to reach an agreement.

The latest round of talks, the first in person since the Covid-19 crisis, came after both sides agreed to “step up” negotiations last month.

Negotiations have continued throughout the pandemic via the video link. An additional five weeks of in-person conversations are planned for July and early August.

BBC Europe journalist Gavin Lee said the last round of talks had ended a day earlier, and that the discussion between the two main negotiators was canceled tomorrow.

Frost said the face-to-face talks had given “greater depth and flexibility” to discussions on a “full range of issues” on trade and a future partnership.

“But they have also underlined the significant differences that still persist between us on a number of important issues,” he added.

“We remain committed to working hard to find an early understanding of the principles behind an agreement.”

Likewise, Barnier said that “serious divergences persist” after the four days of talks, although the EU believes that an agreement is still possible.

‘Equivalent commitment’

“The EU participated constructively, as we had already done during the fourth round of negotiations in June,” he added.

“The EU, in turn, hopes that its positions are better understood and respected in order to reach an agreement.

“We need an equivalent commitment from the UK.”

Officials downplay early ending

Analysis by Gavin Lee, reporter from Europe

The talks started in Brussels on Monday and were to last until tomorrow afternoon, but ended earlier today.

It is understood that very little progress was made this week, but discussions in London scheduled for next week will continue as planned.

EU officials told the BBC that “a positive thing is that the UK now seems to understand our position more clearly in areas of disagreement.”

Officials on both sides were interested in downplaying the decision to end the talks early.

An EU official told the BBC that the discussion planned for this afternoon was to “raise additional questions” and that “it was not a” big problem “that the two negotiators would not meet tomorrow.

Barnier stressed that the EU expects “parallel progress” in all areas of the negotiations.

This is a point of difference with the United Kingdom, which wants to negotiate separate agreements in areas such as fisheries, along with a basic free trade agreement.

Barnier also reiterated that the EU would not agree to an agreement without “solid” guarantees on the so-called “level playing field” for competition between companies.

He added that this would include the state support area for companies.

Just like when it was a member of the EU, the UK remains bound by the bloc’s “state aid” rules during the 11-month transition period ending in December 2020.

The UK has yet to come up with plans for its post-Brexit state aid regime, but Prime Minister Boris Johnson has previously said he wants to make it easier for the UK government to provide assistance to struggling companies.

The two sides also remain bogged down on the issue of fishing rights, an area where they had previously pledged to reach an agreement last month.

The EU wants to maintain its existing access to British waters for vessels from member states, to avoid economic disruption for its fishermen.

But the United Kingdom wants to hold annual talks with the bloc about access to its waters, as it currently does with nations like Norway.