Brexit: UK ‘needs substantial shift’ from EU to save trade deal

Fishing remains sticking point as European Parliament deadline approaches

Britain has warned talks on a post-Brexit trade deal will fail unless there is a “substantial shift” by the EU in the remaining days of the negotiations.

Talks are continuing in Brussels over the weekend, but UK sources said it was looking increasingly likely the Brexit transition period will end on 31 December without an agreement.

The European Parliament has set a deadline of Sunday evening if it is to ratify any deal before the transition ends.

However EU leaders could provisionally sign off on an agreement — leaving ratification to 2021 — and the British side expects the talks to continue a few days longer in the week leading up to Christmas.

There was little optimism, however, that they would come to a positive result, with UK sources accusing the EU of making “unreasonable” demands on issues such as fisheries and fair competition rules.

A government source said: “We need to get any deal right and based on terms which respect what the British people voted for.

”Unfortunately, the EU are still struggling to get the flexibility needed from member states and are continuing to make demands that are incompatible with our independence.

“We cannot accept a deal that doesn't leave us in control of our own laws or waters.

“We're continuing to try every possible path to an agreement, but without a substantial shift from the commission we will be leaving on World Trade Organisation (WTO) terms on December 31.”

Resolving the differences over fisheries appears to have become particularly acute in recent days.

While the fishing industry accounts for only a tiny proportion of the EU and UK economies, it carries huge political resonance on both sides of the Channel.

While the UK says that it is entitled as an independent sovereign nation to take control of its waters, countries like France are determined to defend their fishermen who stand to lose their livelihoods if they can no longer fish in British waters.

If there is no deal by 31 December, the UK will leave the single market and customs union and begin trading with the EU on WTO terms - with the imposition of tariffs potentially leading to higher prices in the shops.

Press Association