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UK, EU call in leaders to save trade talks

Published 04/12/2020, 07:38
Updated 05/12/2020, 05:17
© Reuters. Britain's Business Secretary Alok Sharma attends a virtual news conference on COVID-19 at 10 Downing Street, in London

© Reuters. Britain's Business Secretary Alok Sharma attends a virtual news conference on COVID-19 at 10 Downing Street, in London

By Elizabeth Piper and Gabriela Baczynska

LONDON/BRUSSELS (Reuters) - British and EU negotiators paused trade talks on Friday to call in their leaders to try to narrow gaps and get an agreement over the line, less than four weeks before Britain completes its Brexit journey out of the bloc.

After failing to agree the basis for a deal, Britain's David Frost and the EU's Michel Barnier said they would brief leaders to seek new impetus for the talks, which stumbled on Thursday when London accused Brussels of making new demands.

On Saturday, Prime Minister Boris Johnson and European Commission President Ursula von der Leyen will speak to try to break the impasse, which sources said was centred on French demands over fishing rights in British waters.

It is the latest twist in what has been months of negotiations which have barely moved on the three thorniest issues - fisheries, ensuring fair competition guarantees and ways to solve future disputes.

But so far neither side has walked away from the talks, suggesting that both still hold out some hope of securing a deal governing almost $1 trillion of annual trade to avoid a disorderly end to more than 40 years of British membership of the European club.

"After one week of intense negotiations in London, the two chief negotiators agreed today that the conditions for an agreement are not met, due to significant divergences on level playing field, governance and fisheries," they said in a statement.

"On this basis, they agreed to pause in order to brief their principals on the state of play of the negotiations. (European Commission) President (Ursula) von der Leyen and Prime Minister (Boris) Johnson will discuss the state of play tomorrow afternoon."

Sterling sank by as much as half a cent against the U.S. dollar, weakening to $1.3425 from $1.3475 before the negotiators' statement. The pound was also lower against the euro.

DOWN TO POLITICIANS

Earlier on Friday, there were contradictory reports of how far the talks had progressed, with some EU officials saying they were on the brink of agreement while British officials said the negotiations had reached a "very difficult" point.

Ultimately it will be for the politicians to decide whether they want to shift the negotiating positions and compromise to find grounds for a deal, or instead, to walk away.

The EU has challenged Britain to decide what future it wants for itself outside the bloc's single market and customs union.

Britain formally left the EU on Jan. 31 but has been in a transition period since then under which rules on trade, travel and business remain unchanged.

If the two sides fail to reach a deal, the five-year Brexit divorce will end messily just as Europe grapples with the vast economic cost of the COVID-19 outbreak.

A no-deal exit is the nightmare scenario for businesses and investors, who say it would snarl borders, spook financial markets and sow chaos through supply chains that stretch across Europe and beyond.

The talks soured on Thursday when a British government source said the EU had disrupted talks by trying to force further concessions and France, which fears losing many of its rights to fish in British waters, warned it might rebel. The EU denied making new demands.

French European Affairs Minister Clement Beaune told Europe 1 Radio there was still a risk that talks would fail but added: "I want to tell our fishermen, our producers, the citizens who are listening that we will not accept a deal with bad terms.

© Reuters. Electronic billboard displays a British government information message, in London

"If a good agreement cannot be reached, we will oppose it. Each country has a veto right, so it is possible... We will do our own evaluation of this draft deal, if there is one."

Latest comments

If EU cant negotiate like it has with Japan for example then no deal is the only option. If sky does not fall like EU suggests it will then maybe it can negotiate fairly next year.
Can't wait for all the fish caught in the UK to end up on British plates and all that yummy omega 3.
It would appear that Macron has already prematurely climaxed.
The UK made up its mind in 2016; no ECJ and control of its laws waters and boarders. Its up to the EU to decide if it wants except that, as trading on WTO terms has been accepted here...
£600m of fish are caught by European trawlers from British waters. Britain wants that back, but the EU want to keep fishing in British waters. The EU want their cake and to eat it too. Why don't the EU ask Russia if they can fish in their waters? Let's face it. Spain fish in their own waters, Italy fish in their own waters. The fish the EU want from British waters are for Germany and other land based countries.
The EU has TOLD us have they? This sums up the WHOLE issue! This is why we left!
A sprat? Don't make me laugh pal! The UK is not going away anytime soon - We're a quietly angry nation that has always got its way and will continue to do so! Don't you think this was a ploy to weaken the EU by spreading the amount to go round ever thinner? Look at Poland and Hungary vetoing the EU budget because they don't want to be controlled by the EU - They'll be the next ones to want out! We will NOT be TOLD what to do by ANYONE, no matter how big or small. Haven't you seen the general quiet disobedience amongst the public recently? The UK leads the way in everything and will do so even more after 31/12/2020.
Wie wäre es mit nein?
all countries that only want the benefits but not the commitments OUT...simple...bye bye, rotten apples out, the sooner the better
Barnier should be replaced Its obvious that he cannot negotiate from a stable position. Changing the goal posts all the time is impossible. Its British waters, just the same as some EU countries want to keep their waters. As a sovereign state, British waters are British. It was like that before the EU and it should go back to that. If the EU want fish, they should pay for them
Yes the EU will pay for your fishes that wont fetch even 2% of the amount saved of your yesrly contribution - constant inbalanced arguments here - womder whst it is- state of mind of whatever you will call it of absence of natural logic known as common sense which is given free
you are rambling again Intel. try it in English !
good grief man, you are getting even more intelligible ! Haha
nothing like a little preamble and pantomime.
I think the EU realise this but still wish to retain control over UK. I don't think they will ever recognise that a country has 100% left. How very DARE they?
the EU couldn't give a toss about perfidious Albion.
get real Richard. the UK is the 6/7th biggest dammmgm the world. they would not only be losing their trade surplus with us but also not receiving billions a year from us and also having to subsidise all the east European countries out of a smaller pot. And fish, let's not forget about the fish which will cost macron the next election where he's rolling neck and neck with Le Penn . yes I think the EU really DO give a toss !
sorry for typo I'm first line, it should read 'economy'
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