Question Marks about UK Trade Talks with EU, US

Talks for a trade agreement between the United Kingdom (UK) and the European Union (EU) in the post-Brexit era are reportedly stalling or showing little progress.

The two sides need to agree on fundamental principles first before negotiations can move forward.

“We only have a few weeks left, and we should not waste them,” said the top EU negotiator Michel Barnier, as quoted by MarketWatch.

“By its current refusal to commit to conditions of open and fair competition and to a balanced agreement on fisheries, the UK makes a trade agreement, at this point, unlikely,’’ he added.

Top British negotiator David Frost said that “considerable gaps remain in the most difficult areas.”

“We have always been clear that our principles in these areas are not simple negotiating positions but expressions of the reality that we will be a fully independent country at the end of the transition period.’’

On the other hand, the BBC quoted an unnamed senior UK official negotiator who said, “I can quite see how we could make a breakthrough relatively quickly if they adjust their position.”

The British official reportedly believe the talks are close to either a breakthrough or breakdown.

It truly seems as if each side is waiting for the other one to make a move.

The two sides are trying to reach a trade agreement before the end of the year, and the UK has reportedly ruled out extending the December deadline.

The recent talks came as the second official negotiation round, since the COVID-19 crisis.

The main points of disagreement are agreeing on fair and balanced trade rules, regulating fisheries, the rules for futures agreements, and, of course, the borders with Ireland.

Germany said it is committed to reaching a new partnership agreement between the EU and the UK but the EU should prepare for a no-deal Brexit, German Chancellor Angela Merkel recently told the European bloc.

Merkel then reiterated her previous remarks that talks saw little progress, adding that the EU has agreed with Britain to speed up talks in the coming period.

It is worth noting that Germany assumed a six-month presidency of the EU on 1 July.

Meanwhile, the British Minister of Trade, Liz Truss, said on Thursday that the UK government has never publicly set a timeline for a trade deal with the United States, Reuters reported, citing remarks by the minister to the House of Lords.

This comes as it now seems more unlikely that London and Washington will agree on a trade deal before the end of 2020, as previously expected.

On the contrary, Truss revealed that there has been very good progress in trade talks with the US.