BusinessMirror

JOHNSON, E.U. SET SIGHTS ON DEAL AS BREXIT TALKS ENTER FINAL PHASE

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The UK and the European Union agreed to step up their negotiatio­ns over a postBrexit trade accord following a crunch call between Boris Johnson and the bloc’s leadership in which both renewed their commitment to getting a deal.

With less than two weeks before the prime minister’s deadline to secure an accord, the talks will now move into an intensive final stage. But both sides acknowledg­e there are still significan­t divides to bridge in the time remaining.

The two leaders “instructed their chief negotiator­s to work intensivel­y in order to try to bridge” the gaps between the two sides, they said in a joint statement. “They agreed on the importance of finding an agreement, if at all possible.”

Johnson’s video call with European Commission President Ursula von der Leyen on Saturday is a sign that both sides are still intent on reaching an accord after seven months of negotiatio­ns ended in deadlock on Friday. Without a deal, Britain will crash out of the single market at year- end, leaving businesses and consumers facing disruption and additional costs.

Officials are clear that a lot of work lies ahead, with the biggest sticking points remaining the same as they did when talks started seven months ago: what restrictio­ns on government subsidies to businesses the UK will sign up to, and what access EU fishing boats will have to British waters.

‘Serious divergence­s’

One EU official familiar with the conversati­on said the tough political choices that will have to be taken on those two subjects in particular have yet to be made, and the discussion­s could stretch on beyond Johnson’s mid- October deadline. According to one UK official, Johnson told von der Leyen he wants to know by then whether a deal is possible.

The EU’S chief negotiator, Michel Barnier, spoke of “persistent serious divergence­s on matters of major importance” in a statement on Friday. His UK counterpar­t David Frost said that the disagreeme­nt over fish “risks being impossible to bridge.”

Johnson and von der Leyen’s conversati­on gives the green light for the two negotiator­s to try and nail down an agreement. Talks are set to resume in London next week, followed by Brussels the week after.

The last two days of that two-week period coincides with a major summit of EU leaders, also in Brussels, at which Brexit is due to be on the agenda. If a deal isn’t done by then, officials don’t rule out dramatic make- or- break interventi­ons by French President Emmanuel Macron and German Chancellor Angela Merkel.

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