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AFP
AFP
Business
Clément ZAMPA, Dave CLARK

UK, EU leaders talk as MEPs press Brexit talks deadline

European Union's negotiator Michel Barnier still sees "stumbling blocks" to a deal. ©AFP

Brussels (AFP) - Britain's Prime Minister Boris Johnson and EU chief Ursula von der Leyen were to take stock of the Brexit trade talks in a telephone call Thursday as time runs out for a deal.

Ahead of the cross-Channel evening conversation, officials from both sides stressed that it would be an update on "the state of play" in negotiations and not a sign of a breakthrough.  

But it came after the main political groups in the European Parliament warned that if they do not see the text of a deal by Sunday the will not be able to ratify it before Britain leaves the EU single market on December 31.

Johnson's government has been talking down hopes for an imminent deal, but Brussels' pointman Michel Barnier, told MEPs a deal could come as early as Friday, but admitted this would be "difficult", with fisheries still a sticking point.

Senior UK minister Michael Gove, speaking after video talks with EU Vice President Maros Sefkovic, was pessimistic, putting the odds of a breakthrough at "less than 50 percent".

But both sides seem to be manoeuvring to manage public expectations and to secure last minute advantages, even as the outlines of a hard-won agreement begin to fall into place.

"Good progress, but last stumbling blocks remain," Barnier tweeted after meeting leading MEPs.

According to three parliamentary sources, Barnier told the leaders of the legislature's main political groups that a deal by Friday was "difficult but possible".

A senior European diplomat said member states saw a more flexible timetable, amid suggestions they could give any deal provisional approval if parliament runs out of time.

The diplomat agreed the talks could bear fruit soon. 

"I believe there is still a chance in the next couple of days, but clearly, we are not there yet," he said."Don't despair, there is still a bit of time."

'Difficult but possible'

Barnier, parliamentary sources told AFP, said Britain had accepted a mechanism to allow Brussels to respond if worker and environmental standards diverge in a way that hurts fair competition. 

But he said Britain had not yet said how it would monitor its state subsidies for business -- with the EU wanting stricter independent oversight.

And fisheries remain a point of dispute.Brussels has accepted that Britain will have sovereignty over its waters, and that London will set up a structure to assign quotas to EU boats.

But the sides are arguing over how much fish Britain will gain and Europe insisting it improve its offer.    

After briefing the heads of the European parliamentary groups, Barnier sat down once again with Frost to press on with talks.

If no follow-on trade agreement emerges in time, tariffs will be imposed on cross-Channel commerce, fuelling the economic disruption caused by London's departure.

Any trade deal reached by Barnier and Frost will have to be approved by the EU and UK parliaments, and special sessions may have to be held in the final days of this year.

'Intolerable' uncertainty

MEPs in Brussels said they could hold an extraordinary session "towards the end of December", according to a statement from the leaders of the main political groups and parliament's committee on UK relations.

Iratxe Garcia Perez, head of the centre-left Socialists and Democrats bloc, warned: "We will not be rushed into a consent vote ...if we don't have access to the text by Sunday." 

"After that we cannot reasonably scrutinise the deal before the end of the year," warned Manfred Weber, leader of the conservative EPP.

Meanwhile, unprecedented numbers of heavy goods vehicles are seeking to cross from France to Britain as the Brexit transition period came to a close.

Traffic was heavy in both directions as traders rushed to stockpile goods before December 31, exacerbating delays caused by the pre-Christmas rush and disruption to shipping from the coronavirus crisis. 

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