The U.K. and the EU are in the “last leg of negotiations” over a post-Brexit trade agreement, according to Britain’s foreign minister, with only a few weeks left to approve any potential deal.
The U.K. stopped being a member of the EU in January, but it agreed to keep following European rules until the end of 2020 so both sides could formulate new trade arrangements. However, this has proven to be a difficult task with talks stuck over the same three issues since the spring.
“I do think this is a very significant week, the last real major week,” Dominic Raab, told the BBC on Sunday.
Both sides need to reach new trade arrangements and rectify them in their respective parliaments before the end of the year. Failure to achieve that could lead to a no-deal scenario — higher costs and barriers for exporters on both sides.
According to Raab, a breakthrough depends on overcoming differences over a “fairly narrow” number of issues. The major sticking points remain over fishing, competition policy and governance of any future deal. They have different views on how much access European fishing crews should have on U.K. waters, and on what sort of market competition rules should be applied to ensure Britain’s departure does not jeopardize the EU’s single market.