British Prime Minister Boris Johnson (L) will be welcomed on December 9, 2020 by the President of the European Commission, Ursula von der Leyen (R), in the Berlaymont building at the EU headquarters in Brussels.
OLIVIER HOSLET | AFP | Getty Images
LONDON – Just days before the year-end deadline, Britain and the European Union may be on the verge of signing a much-anticipated post-Brexit trade deal.
On Tuesday, Michel Barnier, chief negotiator for Brexit, said the bloc made a “final push” to negotiate a Brexit trade deal with Britain by December 31.
“We really are at a critical time,” Barnier told reporters on the way to 27 ambassadors. “We’re giving it a final push. In 10 days, the UK will … exit the internal market.”
British Prime Minister Boris Johnson and President of the European Commission Ursula von der Leyen have started a series of “hotline” talks, the FT reported Wednesday, in an effort to reach an agreement before the end of the day.
However, there are still disagreements on fishing rights and several other issues.
The EU wants to maintain access to British waters for its fishing fleets, while the UK wants to largely restrict these fishing rights. In a no-deal scenario, EU access to UK waters could end abruptly, and vice versa, and the UK has already threatened to use gunboats to protect UK waters.
There is concern that some fishing fleets could ignore any restrictions, leading to potential collisions. These are not unheard of; there have been physical skirmishes, known as the “Scallop Wars”, between British and French fishing fleets in recent years in the midst of disputes over fisheries.
UK Housing Secretary Robert Jenrick told Sky News on Wednesday that “serious disagreements” persisted, both over fishing and creating a “level playing field” for businesses.
“I am still fairly optimistic, but there is no news to report this morning,” he said. “” At the moment there is not enough progress. It’s not a deal the Prime Minister thinks he can sign us. ‘
However, there are positive reports of the Brexit talks over the past 24 hours, with ITV political editor Robert Peston claiming on Tuesday that a deal could be reached on Wednesday.
The pound gained about 0.5% against the dollar to $ 1.34 as traders placed bets on a deal that was signed.
If Britain and the EU fail to reach an agreement by December 31, both sides can impose border controls and import taxes on each other’s goods as trade will return to the terms of the World Trade Organization. This could lead to price changes in supermarkets and shops.
Britain officially left the European Union on January 31, 2020, but the leaders were given 11 months to agree on the rules that will dictate the life of the UK and Europe after Brexit.
– CNBC’s Holly Ellyatt contributed to this article.