Barnier sees Brexit agreement after UK 'concession' - report

Barnier said Prime Minister’s Boris Johnson's acceptance of the need for a mechanism to ensure fair competition as regulatory standards diverge over time had unlocked the talks, the Guardian reported. However, he also warned that the negotiations on EU access to British fishing waters had gone backwards.

Downing Street had also reportedly accepted the principle that as either side developed environmental, social and labour standards over time there should be a way to ensure that trade flows were not distorted by the failure of the other to reciprocate.

Barnier described the solution as “unilateral measures”, or tariffs, which would probably be applied after a period of arbitration. He warned that making such a mechanism operational could take all of December but went on to emphasise the growing differences over fishing access as the biggest stumbling block.

A paper submitted in the talks last Monday had raised hopes in Brussels that the UK was rethinking its insistence on annual negotiations over catches – a policy that the EU says offers little stability for its coastal communities. However, it was retracted by Thursday of last week, he reportedly told MEPs.

Ambassadors and MEPs in Brussels were advised that the UK’s move on the so-called “evolution clause”, ensuring there is recourse to unilateral tariffs should standards significantly diverge, also left work to be done on the “architecture” of how it would work in practice.

Barnier outlined three scenarios: a deal struck by the end of this week allowing for ratification by the European parliament on December 28; a breakdown in the talks; or agreement being found at the end of the year and the deal being “provisionally applied” to avoid a no-deal exit, with MEPs giving their consent in 2021.

An EU diplomat said: “There might now be a narrow path to an agreement visible – if negotiators can clear the remaining hurdles in the next few days. There has been some progress in the negotiations over the last few days, but – sometimes substantial – gaps still need to be bridged in important areas like fisheries, governance and level playing field.

“The EU will continue negotiations with its constructive, calm and result-oriented approach. Success depends on whether London also wants a fair deal and is ready to accept the inherent trade-offs.”

EU sources cited by the newspaper suggested the UK was seeking better arrangements on fisheries after making a concession on fair competition.