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With a month until split, Brexit trade deal hangs in balance

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With a month until split, Brexit trade deal hangs in balance
News

News

With a month until split, Brexit trade deal hangs in balance

2020-12-01 23:33 Last Updated At:23:40

The British government told businesses on Tuesday to make sure they are ready for big changes when the U.K. makes its final Brexit break from the European Union in exactly a month. But with negotiations on a free-trade deal with the bloc stuck, firms say they still don't know key details of what those changes will be.

Michael Gove, the minister in charge of Brexit preparations, said trade talks were “getting close to the wire.”

“It’s certainly the case that there is a chance that we may not get a negotiation outcome, that’s why it’s important that businesses prepare for all eventualities,” he told ITV.

The U.K. left the EU early this year, but remained part of the 27-nation bloc’s economic embrace during an 11-month transition as the two sides tried to negotiate a new free-trade deal to take effect Jan. 1.

Talks have already slipped past the mid-November date long set as a deadline for agreement to be reached if it is to be approved by lawmakers in Britain and the EU before the end of the year.

Teams led by EU chief negotiator Michel Barnier and British counterpart David Frost met through the weekend in London with no breakthrough. Talks are continuing, and U.K. officials have said this is the last week to strike a deal.

The two sides remain stuck over key issues including the resolution of future disputes and “level playing field” provisions — the standards the U.K. must meet to export into the EU.

The biggest hurdle appears to be fish, a small part of the economy with an outsized symbolic importance for Europe’s maritime nations. EU countries want their boats to be able to keep fishing in British waters, while the U.K. insists it must control access and quotas.

Gove said EU demands on fishing were “not fair,” but EU nations such as France are reluctant to relinquish their access to British waters.

Speaking from the French presidential palace after a meeting with Belgian Prime Minister on Tuesday, French President Emmanuel Macron warned Tuesday that France won’t accept an agreement that “would not respect our interests in the long term.”

Macron said France would be “extremely vigilant” on the “essential” issues of fair competition and fishing he said after meeting Belgium's prime minister in Paris.

Belgian Prime Minister Alexander De Croo agreed that “an agreement is important but not at any price.” He said the EU and Britain were in the last moment of negotiations.

“We may score a game-winning goal at the last minute,” he said. “It’s time to really see whether it’s possible to move forward and get a deal.”

If there is no deal, New Year’s Day will bring huge disruption, with the overnight imposition of tariffs and other barriers to U.K.-EU trade. That will hurt both sides, but the burden will fall most heavily on Britain, which does almost half its trade with the EU.

The British government has launched a major information campaign, with billboards and advertisements warning that “time is running out” and telling businesses to get ready for change on Jan. 1. But firms that trade with the EU say they still don’t know what conditions they will face in a month’s time.

“There’s an awful lot I don’t feel ready for because I can’t get the answers from the government website,” said James Greenham, managing director of EMS Physio, which exports physiotherapy equipment.

“You go on the government website and you get taken down various wormholes and then it ends in a dead end,” he told the BBC. “There’s no information. The decision has yet to be taken.”

Things will be smoother with a deal, which would remove quotas and tariffs on goods, though businesses still face new obstacles and red tape, including customs declarations and border checks.

Gove said “more than 80% of what business needs to do” would be the same whether or not there is an agreement.

“But I very much want a deal and I believe that we can secure one,” he said.

Sylvie Corbet in Paris contributed to this story.

MADRID (AP) — British and Spanish foreign ministers said a new round of talks held Friday over the status of the disputed territory of Gibraltar following Britain’s exit from the European Union were productive and significant progress was made.

The meeting was between Spain's José Manuel Albares, Britain’s David Cameron and European Commission Vice-President Maros Sefcovic in Brussels. Gibraltar Chief Minister Fabian Picardo also attended. It was the first time representatives from the four areas had come together for talks on the issue.

In a statement after the meeting, the parties said "discussions took place in a constructive atmosphere, with significant progress achieved.

“General political lines have been agreed (on), including on airport, goods and mobility. Negotiations will continue over the coming weeks to conclude the EU-UK Agreement,” it added.

All sides are eager to clinch a deal before European elections in June.

Britain left the European Union in 2020 with the relationship between Gibraltar and the bloc unresolved. Talks on a deal to ensure people and goods can keep flowing over the Gibraltar-Spain border have made halting progress in the 19 rounds of negotiations so far, but both Spanish and U.K. officials have recently expressed optimism about a deal.

In Britain’s 2016 Brexit referendum, 96% of voters in Gibraltar supported remaining in the EU. The tiny territory on Spain's southern tip depends greatly on access to the EU market for its 34,000 inhabitants.

Gibraltar was ceded to Britain in 1713, but Spain has maintained its sovereignty claim ever since. Relations concerning the Rock, as it is popularly referred to in English, have had their ups and downs over the centuries.

A major sticking point has been who controls Gibraltar’s airport, which under the proposed free-movement deal would be an external border of the EU. The U.K. and Gibraltar have resisted Spain’s insistence that Spanish border officials be based at the airport, which is also home to a Royal Air Force base.

The British Foreign Office said Thursday that while it did not expect a final agreement Friday, "getting senior political figures from the UK, European Commission, Spain and Gibraltar in one room is significant.”

Associated Press writer Jill Lawless reported from London.

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo stands outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo stands outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo, center, walks with his delegation outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo, center, walks with his delegation outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Gibraltar Chief Minister Fabian Picardo speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno, right, walks outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno, right, walks outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

Spain's Foreign Minister Jose Manuel Albares Bueno speaks with the media outside EU headquarters in Brussels, Friday, April 12, 2024. British and Spanish foreign ministers are scheduled to meet Friday with a top European Commission official for another round of negotiations over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. (AP Photo/Omar Havana)

FILE - Aerial view of Gibraltar rock taken from the neighbouring Spanish city of La Linea, on Oct. 17, 2019. British and Spanish foreign ministers are to meet in Brussels on Friday April 12, 2024 in a bid to take a giant leap forward on talks over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. All sides are eager to clinch a deal before European elections in June which could set the clock back. Britain left the European Union in 2020 with the relationship between Gibraltar and the bloc unresolved. (AP Photo/Javier Fergo, File)

FILE - Aerial view of Gibraltar rock taken from the neighbouring Spanish city of La Linea, on Oct. 17, 2019. British and Spanish foreign ministers are to meet in Brussels on Friday April 12, 2024 in a bid to take a giant leap forward on talks over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. All sides are eager to clinch a deal before European elections in June which could set the clock back. Britain left the European Union in 2020 with the relationship between Gibraltar and the bloc unresolved. (AP Photo/Javier Fergo, File)

FILE - People walk past a Brexit information office at the British territory of Gibraltar, on Jan. 31, 2020. British and Spanish foreign ministers are to meet in Brussels on Friday April 12, 2024 in a bid to take a giant leap forward on talks over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. All sides are eager to clinch a deal before European elections in June which could set the clock back. Britain left the European Union in 2020 with the relationship between Gibraltar and the bloc unresolved. (AP Photo/Javier Fergo, File)

FILE - People walk past a Brexit information office at the British territory of Gibraltar, on Jan. 31, 2020. British and Spanish foreign ministers are to meet in Brussels on Friday April 12, 2024 in a bid to take a giant leap forward on talks over the status of the disputed territory of Gibraltar following Britain's exit from the European Union. All sides are eager to clinch a deal before European elections in June which could set the clock back. Britain left the European Union in 2020 with the relationship between Gibraltar and the bloc unresolved. (AP Photo/Javier Fergo, File)