The UK government has said in a statement that “limited progress” has been made in trade talks with the EU after the latest round of negotiations this week, adding that talks must “move forward in a constructive fashion”.
The sentiment was shared by EU chief negotiator Michel Barnier, who said prior to the weekend that “genuine progress” along with a decision on whether to extend the post-Brexit transition period beyond December 31, 2020, would be needed by June 30.
The UK government has thus far been insistent that it will not agree to an extension beyond December.
Should an extension eventually be triggered, Barnier has made clear that the UK would be expected to pay a “lump-sum” contribution into the EU budget.
Recent talks have been taking place via videoconference amid the Covid-19 pandemic, including those carried out this week.
Despite conceding that limited progress had been made in “bridging the gaps” with the EU, the UK government described the most recent talks as “full and constructive”.
Downing Street’s statement said: "Our assessment is that there was some promising convergence in the core areas of a free trade agreement, for example on goods and services trade, and related issues such as energy, transport, and civil nuclear cooperation."
However, it described the EU’s position on trade of goods as falling “well short of recent precedent in free trade agreements it has agreed with other sovereign countries”, which “considerably reduces the practical value of the zero tariff zero quota aspiration” both sides have in common.
Barnier said after the talks: "The UK has affirmed once again this week its wish to make tangible progress between now and June and we are on the same wavelength on this and we respect the same timetable.
"That means that we need genuine progress by June if, at the end of this year, we want to strike an agreement which is commensurate to the level of our economic interdependence and geographical proximity."
Barnier went on to say that there was still minimal progress on the issues of the level playing field, fisheries, and justice.
On the issue of fisheries, Barnier said that no progress had been made and that he was waiting on the UK to put a legal text forward.
He outlined that the EU position on fisheries was to seek a “balanced, sustainable and long-term agreement”, adding that this should be an “inseparable part of the trade agreement, along with the level-playing field”.
Barnier said that the "clock is ticking" for both sides to “find solutions on the most difficult topics”.
He said: "The UK cannot refuse to extend transition and at the same time slow down discussions on important areas.”
The UK government agreed that discussions around the level playing field and fisheries showed “significant differences of principle” but stressed that the UK was still “committed to a deal with a free trade agreement at its core”.
The next round of talks will be held on the weeks commencing May 11 and June 1.
