BRUSSELS/LONDON (Reuters) -London and Brussels are expected to agree to more talks on an elusive trade agreement on Sunday, but have a long way to go to avert a turbulent ‘no deal’ exit for Britain from the European Union’s orbit on Dec. 31, EU sources said.
British Prime Minister Boris Johnson and the president of the EU’s executive Commission, Ursula von der Leyen gave negotiators a Sunday deadline to find a way to resolve an impasse on arrangements that would guarantee Britain zero-tariff and zero-quota access to the EU’s single market.
Johnson and von der Leyen would be in touch on Sunday and EU sources said a statement was expected at around 1130-1200 GMT on whether to abandon the negotiations or keep trying for an 11th hour deal.
Both said on Friday that a ‘no-deal’ was now the most likely outcome, but EU sources said on Sunday they expected efforts to continue.
“They are making some inroads on difficult stuff. How to manage divergence and soften the blows for (EU) fishermen is still open,” one EU diplomat said.
British foreign minister Dominic Raab said the bar was quite high for continuing discussions but that negotiations could “drag on”. “Never say never,” he told the BBC, saying the British side needed the EU to shift position on two issues.
“We want to be treated like any other independent self-respecting democracy. If the EU can accept that at a political level, then there’s every reason to be confident but there is still, I think, a long way to go,” he told Sky News.
On the same programme, Spanish foreign minister Arancha Gonzalez Laya retorted: “A trade deal is not made to assert one’s independence but to manage our interdependence.”
Britain quit the EU in January but remains an informal member until Dec. 31 - the end of a transition period during which it has remained in the EU single market and customs union.
A Brexit without a trade deal would damage the economies of Europe, send shockwaves through financial markets, snarl borders and sow chaos through the delicate supply chains across Europe and beyond.
The two sides have struggled to agree on fishing rights in British waters and EU demands that Britain face consequences if in the future it diverges from the bloc’s rules for fair competition - what it calls a level playing field.
Irish Prime Minister Micheal Martin said with some degree of creativity, a solution could be found on the level playing field and that he fervently hoped talks would go on beyond Sunday.
Failure to get a deal would be an “appalling failure of statecraft” on both sides, Martin told the BBC.
SUPPLY DISRUPTION
The British government has warned that even with a trade deal, 7,000 trucks heading for Channel ports in south-east England could be held in 100-km (62-mile) queues if companies do not prepare the extra paperwork required.
Britain is expected to fast-track the movement of some perishable goods when its transition period ends to help reduce the expected disruption at ports.
The Ministry of Defence said four Royal Navy patrol ships will be ready on Jan. 1 to help protect Britain’s fishing waters in the event of no deal.
There are concerns about possible skirmishes between British and foreign fishing vessels under that scenario because existing rules that give EU boats access to British waters will expire.
France on Saturday shrugged off the naval deployment plans.
“Keep calm and carry on,” an official at the French presidential office told Reuters, using a British wartime slogan.
Additional reporting by Elizabeth Piper in London, John Chalmers in Brussels, Padraic Halpin in Dublin, Graham Keeley in Madrid and Michel Rose in Paris; editing by Frances Kerry and Philippa Fletcher
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