Brexit trade talks falter at the 11th hour
UK accuses EU of ambush on subsidies
HOPES of a Brexit breakthrough were waning last night after the British Government accused Brussels of presenting new demands at the 11th hour.
UK negotiators had believed they were close to striking a trade deal but said the discussions in London went backward over a rocky afternoon.
They accused Michel Barnier of throwing a spanner into the works by pushing for further concessions on the issue of subsidies.
Officials claim the French are putting pressure on the EU chief negotiator because of concerns in Paris that UK businesses will use Brexit to undercut competitors on the continent.
‘At the 11th hour, the EU is bringing new elements into the negotiation,’ said one source.
‘A breakthrough is still possible but that prospect is receding.’
Negotiators have been talking late into the night all week and are discussing the possibility of pausing today before resuming again tomorrow.
Officials have compared the windowless basement rooms in
Whitehall where the negotiations have been taking place to a jail. One source said they believed ‘day release’ could be beneficial for both sides.
Ireland’s foreign minister Simon
Coveney yesterday said he believed there was still a ‘good chance’ an agreement could be reached.
‘It’s the time to hold our nerve, to trust Michel Barnier, who has done a phenomenal job to date,’ he said.
‘I believe, if we do that, there’s a good chance that we can get a deal across the line in the next few days.’
Businesses are becoming increasingly frustrated with the uncertainty around trading arrangements once the UK leaves the single market and customs union at the end of the year. Tesco chief executive Ken Murphy told Sky News the supermarket chain was preparing for No Deal.
‘We have been doing everything in our power to make sure that we are well placed to continue trading, to continue to supply our customers regardless of whether there is or isn’t a No Deal Brexit,’ he said.
‘The biggest challenge we face really is the movement of product between borders, the movement of product between Great Britain and Northern Ireland and, of course, between mainland Europe and the UK.
‘That’s the one area where we really would urge the Government to give us some clarity and to allow us to prepare event better for the end of December.’
Boris Johnson tried to ratchet up the pressure yesterday by threatening to bring back controversial legislation before MPs.
Commons Leader Jacob ReesMogg said the UK Internal Market Bill will return on Monday after peers removed clauses that give ministers the power to renege on parts of the EU Withdrawal Agreement. The Government is likely to back down on the issue if a deal is reached.
Last month the House of Lords inflicted on the Government the largest defeat in more than two decades over the legislation.
Tory grandees including Michael Howard and Ken Clarke joined the revolt as peers voted by 433 to 165 to strip out key clauses.
Mr Rees-Mogg told MPs yesterday: ‘We will be doing the Lords amendments on Monday and we will be pushing back all the amendments which were made in the Lords – including the ones relating to Clause 5 and ensuring that we can put the best interests of the whole United Kingdom first.’
Labour leader Sir Keir Starmer confirmed that his party was likely to back an EU trade deal in any Commons vote.
During a visit to Portsmouth, he said: ‘As soon as there’s a deal we’ll look at it, but if the choice is a deal or No Deal, then a deal is obviously in the national interest.’
‘A breakthrough is still possible’