Quiet progress on Brexit raises hopes of September trade deal

A comprehensive Brexit trade deal could be finalised in September, negotiators say while warning of two big hurdles.

Boris Johnson with a double catch on the boat Carvela at Stromness Harbour in Scotland on Thursday. Picture: Getty Images

A comprehensive Brexit trade deal could be finalised in September, British and EU negotiators said on Friday, while warning of two big hurdles.

After the latest talks in London, EU chief negotiator Michel Barnier said that an agreement was “unlikely” unless Britain made concessions on fishing rights and competition.

British Prime Minister Boris Johnson’s chief negotiator, David Frost, said “considerable gaps remain in the most difficult areas” and that the UK must “face the possibility” that the talks could collapse.

Having set a deadline of the end of the month to reach a framework agreement, Mr Frost said the UK was now happy for the talks to continue in September and played down suggestions that his team would walk away.

“Despite all the difficulties, on the basis of the work we have done in July my assessment is an agreement can still be reached in September and that we should continue to negotiate with this aim in mind,” he said.

Mr Barnier agreed that discussions had been “constructive and respectful”, and would formally restart in the last two weeks of August.

The posturing of both sides belied progress made in some areas. Mr Barnier has signalled acceptance that the European Court of Justice can have no role in policing the deal.

He has also conceded that the EU will have different access to British fishing waters.

In return, Britain has accepted that each element of the agreement will be governed under a single arbitration structure in the case of disputes.

It has also conceded that there will be a single deal rather than separate treaties.

Mr Johnson said on Friday: “I think there’s every reason for us to be very optimistic but there are some things that we simply can’t compromise over. There’s no point in leaving the EU if you remain in the pull of the EU and you are unable to do things differently. Everybody understands that.”

The stickiest area seems to be state aid and competition, where Brussels is pressing the UK for detailed proposals of its post-Brexit regime. European leaders worry that the government could subsidise parts of the economy to give them competitive advantage.

A senior British official said the government was not prepared to “pre-commit to a particular (stage aid) regime within a treaty with the EU”.

On fishing, Mr Barnier said the government was “effectively asking for near-total exclusion” of EU fishing vessels from British waters. “That is simply unacceptable,” he said.

Mr Johnson has demanded a “huge change” to the status quo, under which EU states can fish in much of Britain’s waters and vice versa. “We need to capture the value of the fish that are in our waters,” the government source said.

Britain and the EU must reach a legal agreement by the end of October if it is to be ratified by the December 31 deadline.

Without this, Britain leaves the transition period with no deal. “I think it can be done,” the British source said.

THE TIMES