Trade talks still stuck in limbo between UK and EU

TRADE TALKS between the UK and European Union remain in limbo despite further discussions between the two sides.

Lead negotiators Lord Frost and Michel Barnier spoke yesterday but Downing Street said there had not been a breakthrough.

Meanwhile, the Government suffered a defeat in the House of Lords over controversial legislation allowing Ministers to break international law by tearing up parts of the Brexit divorce deal Boris Johnson struck with Brussels. Peers backed a “regret” amendment by a majority of 226, condemning the contentious provisions and warning they “would undermine the rule of law and damage the reputation of the United Kingdom”.

Tory rebels included senior lawyer Lord Keen of Elie, who resigned as Advocate General for Scotland over the legislation, and ex- leader Lord Howard.

Talks on the future trading relationship between the UK and EU stalled last week and Downing Street has insisted there is no point in resuming negotiations unless Brussels is prepared to fundamentally change its position in key areas.

Brussels said both sides will need to compromise if an agreement is to be reached, with time running out for a deal to be in place when the transition arrangements expire at the end of the year. Downing Street has said it wants a “clear assurance” that the EU is prepared to make a “fundamental change in approach” to the talks.

Despite the apparent deadlock, Mr Johnson and Cabinet Office Minister Michael Gove expressed hopes of a successful Brexit transition period after speaking to 250 business leaders yesterday.

With the UK insisting it may need to leave the bloc on “Australianstyle” trade terms, rather than a more comprehensive “Canada- style” agreement, the Prime Minister insisted Britain would prosper outside the EU.