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The latest round of talks on a post-Brexit trade deal “did not go well”, Sky News understands, with a UK source suggesting that hopes of a deal are now “on the wane.
According to Sky’s deputy political director, Sam Coates, the sticking point was the so-called “level playing field.”
This is the issue of preventing unfair competition in subsidies and state rules once Britain leaves the bloc.
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Barnier: ‘Determination’ in Brexit negotiations
“Both parties had previously indicated that while there was not a full agreement, they thought they had found a way through this very complicated issue,” Coates said.
“Tonight, the UK side suggests that the EU side has introduced some new elements that complicate that discussion.
“We don’t have the specifics of what has gone wrong, but they are suggesting that this is a material change for the worse and jeopardizes hopes – and there were high hopes – that we could get a Brexit deal.” possibly Saturday or Sunday this weekend.
“They suggest that it is now regressing.”
But our correspondent warned: “At this moment we do not know what is real and what choreographed theatricality.”
It is understood that the EU’s chief negotiator, Michel Barnier, will return to Brussels on Friday.
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Raab: Brexit talks about ‘last week or so’
But his negotiating team will remain in London for the weekend, and more negotiators will join them, an EU source told Sky News.
The two sides have been locked in talks in an attempt to reach a trade deal before the end of the month, when Britain will leave the transition period.
If no deal is reached, the UK will trade with the bloc on the terms of the World Trade Organization from January 1.
This would mean the existence of tariffs in both directions, which would potentially translate into higher prices for consumers.
Britain left the EU at the end of January and entered an 11-month transition period, following EU rules and regulations while trying to negotiate a free trade agreement.
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But a breakthrough so far has proven elusive.
In addition to “level playing field” issues, fisheries have emerged as another key point in the discussions.
Boris Johnson has said in the past that Britain will prosper outside the EU, even if there is no trade deal.
But the Office of Budget Responsibility has said that failure to reach an agreement could have a 2% impact on gross domestic product.
