(Bloomberg) -- Britain and the European Union are giving negotiations over a post-Brexit trade deal “a final push,” the EU’s chief negotiator, Michel Barnier, said as officials on both sides talked of a possible accord as soon as Wednesday.
Barnier also told ambassadors gathered in Brussels that there has been progress in his talks with the U.K. and a deal could be signed before Christmas if the British are prepared to compromise on fishing rights, according to diplomats briefed on the discussions.
U.K. Prime Minister Boris Johnson and European Commission President Ursula von der Leyen have held talks by phone in recent days in a last-ditch bid to resolve their disagreement over fishing rights, the key remaining obstacle to a wider trade accord.
Earlier in the week, the U.K. put forward a proposal that would see value of the fish EU boats catch in British waters shrink by 30%, a substantially smaller drop than the 60% it was demanding last week. The two sides are also discussing what sort of retaliation would be allowed if one side breaks the agreement.
The bloc, however, refused to accept a reduction of more than 25%, saying even that was hard for countries like France and Denmark to accept, according to officials with knowledge of the discussions. Barnier told the ambassadors that his team is prepared to keep negotiating after the U.K.’s transition period expires on Dec. 31 if that is what is required to close a deal.
It’s not as simple as just the raw numbers though, which is why, as the two sides continue to talks, a compromise isn’t out of the question.
Alongside the percentage value of catch, the two sides are haggling over how long a period of time fishermen will be given to adjust to the rules. The U.K. has demanded the EU accept a five-year transition period after previously suggesting three years. The bloc had initially called for 10 years, and has now offered seven.
Cross-Retaliation
The EU wants to be able to impose tariffs on the U.K. if, in future, the government restricts access to its waters. In its latest compromise offer, the U.K. said it would accept tariffs on fisheries but not in other areas, such as on energy, as demanded by the bloc.
As he arrived at the meeting in the commission’s headquarters, Barnier told reporters the talks are at a “crucial moment.”
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