An extra mile left for Brexit trade-off

Brussels is looking to rephrase the main obstacle preventing a Brexit trade deal with Britain, paving the way for a possible last-gasp compromise, insiders believe.

British Prime Minister Boris Johnson. Picture: Getty Images

Brussels is looking to rephrase the main obstacle preventing a Brexit trade deal with Britain, paving the way for a possible last-gasp compromise, insiders believe.

A continuation of talks “to go the extra mile” initiated by the EU was welcomed by British Prime Minister Boris Johnson on Monday AEDT.

There was a sense that the EU made the move recognising that its failure to meet Mr Johnson’s most recent offer could leave ­Britain walking away entirely and that the ramifications of a political failure would be laid at the feet of Brussels’ intransigence.

While EU leaders such as French President Emmanuel Macron and German Chancellor Angela Merkel manoeuvred ­behind the scenes, European Commission president Ursula von der Leyen indicated to Mr Johnson there was a desire to continue the talks.

Mrs Merkel later said “everything possible’’ should be applied to try and extract a deal.

Three sticking points remain in the talks, but two — fishing rights and the judicial oversight — are believed to be solvable.

Mr Johnson also said there were another half-dozen other ­issues that needed to be thrashed out.

But it is the third big one — the level-playing-field mantra that underpins the EU solidarity ­between member states — which has caused Mr Johnson the most angst because acceding to it would mean Britain would lose sovereignty of its standards.

Mr Johnson met Mrs von der Leyen last week with a carrot, ­offering to pay some tariffs upfront to remove the EU’s ratchet clause that would make Britain follow European standards.

Sources say that was met with a stony silence from Mrs von der Leyen, although the offer may have helped keep talks going this week beyond Sunday’s deadline.

However, with just 17 days ­before the Brexit transition ends, the only possibilities are for a no-deal Brexit, a deal at the final hour or the most unlikely outcome, an extension of the transition period.

Westminster is primed to sit on Christmas Eve and Boxing Day if required to ratify any last-gasp deal.

But there could be a delay by the 27 EU member states who must all agree on the final outcome at an extraordinary meeting of the European parliament on December 28.

Mr Johnson insisted on Sunday that no-deal was still the most likely outcome, even though Mrs von der Leyen said their most ­recent phone call had been “constructive and useful”.

If, as speculated in the British press that the EU will drop demands for lightning tariffs if the UK breaks the trade treaty, British sources believe a deal could be completed within a week.

Britain’s chief negotiator, David Frost, and the EU negotiator Michel Barnier resumed their talks in Brussels on Monday amid a thawing of the recent frostiness.

Mr Johnson said: “We are ­always happy to talk and to make progress where we can.

“I do think, as I say, there is a deal to be done if our partners want to do it.

“We remain very far apart on these key issues but where there is life, there is hope.

“We are going to keep talking to see what we can do …. we’re going to continue to try and we’re going to try with all our hearts and be as creative as we possibly can.”

He urged businesses to continue with no-deal planning ­because there was “a clarity and a simplicity in that approach”.

Ireland Foreign Affairs Minister Simon Coveney warned of a“huge political failing” if there was no deal, but was heartened that serious talks were ongoing and neither side was breaking confidences.

“This is a matter of days now,’’ he said.

Labour and British business and industry groups were relieved that the talks were continuing and urged a decision that would provide “certainty’’.

Liberal Democrats leader Ed Davey said it was an outrage that British business was being “left in the lurch with only a handful of days to plan for new trading ­arrangements’’.

“The fact that businesses, ­already on their knees from the COVID crisis, still have no idea how they will trade with the EU in 2½ weeks is already costing jobs and is frankly shocking.’’