■ EU and U.K. officials expressed optimism over lastditch talks on a post-brexit trade deal.

Sides express optimism that post-brexit pact can be reached

BRUSSELS — European Union and British negotiators closed in on a trade deal Wednesday, raising hopes a chaotic economic break between the two sides on New Year’s Day could be averted, officials said.

After resolving a few remaining fair-competition issues, negotiators dealt last with EU fishing rights in U.K. waters as they worked to secure a deal for a post-brexit relationship after nine months of talks.

Sources on both sides said the talks were in a final phase, with one EU official saying: “I expect to see some white smoke tonight.” The official asked not to be identified because the talks were still ongoing. The British government said an agreement might come as soon as Wednesday night.

Customs checks and some other barriers will be imposed under whatever circumstances on Jan. 1, but a trade deal would avert the imposition of tariffs and duties that could cost both sides billions in trade and hundreds of thousands of jobs. Britain withdrew from the EU on Jan. 31, and an economic transition period expires on Dec. 31.

British Prime Minister Boris Johnson has insisted the U.K. would “prosper mightily” even if no deal were reached and the U.K. had to trade with the EU on World Trade Organization terms.

But his government has acknowledged that a chaotic exit is likely to bring gridlock at Britain’s ports, temporary shortages of some goods and price increases for staple foods. Tariffs will be applied to many U.K. exports, including 10 percent on cars and more than 40 percent on lamb.

On Wednesday, the brokering on quotas and transition times for EU vessels to continue fishing in U.K. waters were in full swing, with progress reported from several sides.

In London, U.K. Cabinet minister Robert Jenrick said, “We will need to get those final issues resolved, and there’s some way further to go on that.” He said he nonetheless felt optimistic.

The EU has feared that Britain would undercut the bloc’s social, environmental and state aid rules to gain an unfair edge with its exports. Britain has said that having to meet EU rules would undercut its sovereignty. On those issues, a compromise had been reached, a diplomat from an EU country said.