Despite the new disagreements over the controversial British Internal Market Act, the British and European Union (EU) delegations hope that a breakthrough will be reached this week in negotiations on the future of the two sides after the Brexit.
In an effort to finally find a compromise that has so far failed to reach a number of key issues in six months, a large number of officials from both sides will gather in Brussels from Monday.
Both London and Brussels insist that an agreement on the new free trade agreement be reached by mid-October, in order to allow time for its ratification before 1 January next year, when the agreement is due to enter into force.
Although Britain left the EU on 31 January, there is a transition period until the end of the year, during which, among other things, an agreement on a new reciprocal trade agreement must be reached.
If no agreement is reached, trade relations between the two parties will henceforth be governed by the rules of the International Trade Organization (WTO).
To prepare for this week’s round of talks, Michel Barnier, head of the EU negotiating delegation, met with David Frost, head of the British delegation, last week, and London described the meeting as “constructive”.
However, European diplomats are wary of a possible breakthrough and say that this week’s round of talks should lay the groundwork for a final solution that could be reached in October.
“We need to find a way to an agreement next week,” a source in Brussels said. “If the result is zero, the negotiation process will be in big trouble.”
On Monday, senior EU and British officials will meet in Brussels to try to find an understanding on the Brexite agreement.
Maroš Šefčovič, Vice-President of the European Commission (EC), will meet with Michael Cow, Head of the Chancellery of the Prime Minister of the United Kingdom Boris Johnson. They are both co-chairs of the UK-EU Joint Coordination Committee, which oversees the implementation of last year’s Brexit agreement.
Irish Foreign Secretary Simon Covenant has previously stated that the European Council will not approve the new trade agreement unless London withdraws from its intention to partially abandon the Brexit agreement in order to remove potential trade barriers between Northern Ireland and the rest of the UK.
Brussels has decided to take Johnson’s proposed internal market law to court, but has decided to continue negotiations while the law is being considered by both chambers of the British parliament.
Disagreements also remain between the two sides over a level playing field, state subsidies to companies and access by EU vessels to fishing grounds in British waters.
While diplomats hope that significant progress will be made by the EU summit in October, there are also predictions that the stalemate could last until November.
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