Chief Negotiator of the UK Task Force of the European Commission, Michel Barnier.
Thierry Monasse | Getty Images News | Getty Images
LONDON – The UK and the European Union are running out of time to agree on a post-Brexit trade deal, warned EU chief negotiator Michel Barnier.
Both sides have released conflicting reports in recent days about the likelihood of a trade deal being reached before Britain leaves the EU orbit in two weeks.
In a speech to the European Parliament in Brussels on Friday, Barnier said the negotiations had “reached the moment of truth”.
“We have little time, just a few hours, to walk through these negotiations in a useful way if we want the agreement to enter into force on January 1,” said Barner.
“There is a chance of getting an agreement, but the road to such an agreement is very narrow.”
A deal would likely allow for tariff-free goods trade between the UK and the EU after Dec. 31, but major disputes over issues such as fisheries have continued to plague discussions in recent weeks.
Both British Prime Minister Boris Johnson and European Commission President Ursula von der Leyen struck somber tones after a phone call on Thursday evening, with Johnson suggesting a deal was unlikely unless the bloc were willing to make concessions on fishing. Meanwhile, von der Leyen acknowledged that an agreement at this stage would be “very challenging”.
This came just a day after von der Leyen announced that a “narrow path” had emerged for the two sides to negotiate a deal before the deadline.
Sterling, which has rebounded in recent days after growing optimism that a damaging “no deal” scenario could be avoided, fell 0.3% against the dollar during morning trading in London on Friday and changed hands at just above $ 1.3540.