Britain and the European Union look set to seal a historic post-Brexit trade accord in time for Christmas after negotiators reached the outline of a deal that includes a compromise on fishing rights.
The negotiating teams were working late on Wednesday to finalize the wording of the agreement, which will formally complete Britain’s separation from the bloc almost five years after the 2016 referendum. The cabinet is also holding a conference call to be briefed on the state of the negotiations, according to a British official.
The document still needs to be approved by British Prime Minister Boris Johnson and EU governments, but officials on both sides hope to make an announcement by Thursday at the latest.
Boris Johnson met with Ursula von der Leyen in Brussels, Belgium on Dec. 9.
Photographer: Aaron Chown/PA Wire/Bloomberg
Johnson and European Commission President Ursula von der Leyen intervened personally in recent days, holding several phone conversations, in a last-ditch bid to reach an agreement before the U.K. leaves the single market at the end of the month.
One EU diplomat said the U.K. had made concessions on fisheries in recent hours that had unlocked the deal. According to two people familiar with the matter, Johnson has accepted that the bloc’s share of the catch in U.K. waters should fall by 25% over a period of five-and-a-half years. Britain had initially sought an 80% reduction over just three years, but in recent days had offered a cut of 30%.
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If the two sides can pull a deal off, it would draw a line under almost five years of often tempestuous negotiations since the U.K. voted to withdraw from the EU in 2016 and lay the foundations for Britain to trade and collaborate with the bloc going forward.
As the Brexit endgame was drawing to a close, hundreds of trucks backed up around the southern English port of Dover earlier this week had offered a sobering reminder of the potential consequences of ending Britain’s transition period on Dec. 31 without a deal.
Both sides have made an agreement on fishing a precondition for any wider deal over their future relationship, even if the 650 million euros ($790 million) of fish European boats catch in U.K. waters each year is a fraction of the 512 billion euros of goods traded annually between Britain and the EU.
The EU has also compromised on fishing: It’s gone from accepting no reduction at the start of the negotiations to 18% a few weeks ago, then to 25% in the last few days. The bloc had refused to accept a reduction of more than 25% in the value of fish caught, saying even that was hard for countries like France and Denmark to accept, according to officials with knowledge of the discussions.
It’s not as simple as just the raw numbers though. Alongside the percentage value of the catch, the two sides were haggling over how long a period of time fishermen will be given to adjust to the rules. The EU had initially called for a 10-year transition period, before reducing that to seven. The U.K. has demanded the EU accept a five-year transition period after previously suggesting three years.
The EU also wants to be able to impose tariffs on the U.K. if, after the transition period, the government restricts access to its waters. In its latest compromise offer, the U.K. said it would accept tariffs on fisheries but not in other areas, such as on energy, as demanded by the bloc.
— With assistance by Tim Ross
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U.K., EU Set to Seal Brexit Trade Deal After Fish Compromise - Bloomberg
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