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The European Union is seeking additional concessions from the UK before intensive negotiations to find a trade deal can begin, an EU diplomat said when key negotiators met in London with just weeks to reach a deal.
Michel Barnier for the EU and David Frost for the UK met for closed talks in London when both sides warned that significant differences in fishing rights, fair competition rules and governance remained.
“We need to get a little more from the UK side before it is willing to use the submarine or the tunnel,” said a senior EU diplomat in reference to the intense negotiation period that would begin in the run-up to a deal.
A UK government spokesman said some progress had been made, but the two sides still disagreed on all issues.
“We have had useful discussions this week and progress has been made in some areas,” the spokesperson said. “However, there are still differences on some important issues.”
Some member states have become “a bit nervous” about the prospect of an agreement not being reached, according to the EU diplomat, something that would mean an abrupt change to trade terms by the end of the year, disrupting trade. and supply chains. in and out of the UK due to fees and paperwork that would go into effect.
“You always need to do contingency planning. I mean, the end of the year is fast approaching and we still don’t know if there will be an agreement or not, ”said the diplomat.
“Companies must prepare, but they must also prepare for a no-deal. But that does not mean that we feel that a deal is impossible. I think it is still very possible. “
British Prime Minister Boris Johnson has said he prefers to strike a deal, but not at any price.
Irish warning
The Irish government issued a warning to companies on Friday to prepare for changes to the trade terms that will take effect on January 1, whether a deal is reached or not, urging companies to make sure they know. how to manage customs and supply chain disruption.
Attempts to reach an agreement have been complicated by a move by the United Kingdom to undermine its divorce treaty reached in 2019 by introducing a bill that would nullify aspects of it, including arrangements for controls between Britain and Ireland. North that were agreed to avoid a hard border on the island.
EU and UK officials met to discuss the implementation of those agreements on Friday and “exchanged updates,” according to a statement from the UK government, which acknowledged that differences between the two sides persisted.
“The UK remains committed to a constructive engagement to resolve all outstanding issues as soon as possible,” the statement read.
One politically sensitive topic is fishing, which is a hot topic for several member states with fishing fleets that have traditionally relied on access to British waters, including France, Denmark and Belgium.
Although the industry employs only 180,000 people and accounts for less than 1 percent of the bloc’s economic output, politicians warn that cutting off access to fishing waters could devastate coastal communities and generate resentment towards the EU. But some see the problem as surmountable.
“I don’t think so… This will be a major impediment to an EU-UK deal,” said the EU diplomat on fisheries.
“What I see now is the UK. . . they see it as a lever to access the European Union market. I think that’s the game we’re watching right now. “
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