Tense 'Edge of the Blade' Talks Between UK and EU... Final Negotiations Over Fisheries and Fair Competition Environment

Negotiations Resumed on the 6th but Differences Remain... No-Deal Possibility Still Present

David Frost, UK Chief Negotiator (left in photo), and Michel Barnier, EU Chief Negotiator
[Image source=Reuters Yonhap News]

[Asia Economy Reporter Jeong Hyunjin] With less than a month remaining in the Brexit (the United Kingdom's withdrawal from the EU) transition period, the future relationship negotiations between the UK and the European Union (EU) are continuing precariously, as if walking on a knife's edge. Despite reports that a consensus has been reached in the most contentious fishing sector, explanations have emerged stating that no breakthrough has yet been made, showing that the final negotiations are highly sensitive to every piece of news. With major issues such as fishing and a level playing field still causing divisions, a phone call between the leaders of both sides is expected to be a turning point in these talks.

According to BBC and other sources on the 6th (local time), UK Prime Minister Boris Johnson and EU Commission President Ursula von der Leyen held a phone call the previous day and agreed to resume the suspended negotiations, and they are scheduled to have another phone call on the 7th. They are expected to decide whether to reach an agreement based on the progress report or to conclude the talks without an agreement.

At present, the possibility of a final agreement remains uncertain. Representatives from both the UK and EU negotiation teams resumed future relationship talks in Brussels, Belgium, in the afternoon, but they are struggling to narrow differences on three major issues: fishing, a level playing field, and governance. Regarding the progress of discussions, Irish Prime Minister Miche?l Martin said in an interview with local media, "The matters are on a knife's edge and the situation is serious. My instinct is that it is a 50-50 situation," adding that no one can be overly optimistic that a solution will emerge.

Initially, foreign media, citing sources, reported that both sides appeared to be reaching a consensus on one of the core issues, the fishing sector. It was reported that they seemed to be finding some agreement on the period of access for EU vessels to fish in UK waters. However, after the report, a UK government official clarified, "No breakthrough has been found (regarding the fishing sector)," emphasizing that there have been no achievements based on the day's meetings so far.

The level playing field issue, which is discussed alongside the fishing negotiations, shows an even wider gap. Regarding the requirement that products exported from the UK to the EU must comply with the EU's environmental, social, and labor standards, the two sides hold sharply opposing views. The UK stresses that since the main reason for Brexit was the restoration of sovereignty, it must retain decision-making authority over standards, while the EU insists that acceptance of these standards is necessary to enter the internal market.

EU chief negotiator Michel Barnier is scheduled to update the ambassadors of the 27 EU member states on the future relationship negotiations at 7:30 a.m. on the 7th. Based on this report, Prime Minister Johnson and President von der Leyen will hold a phone call. With the EU 27 leaders' summit scheduled for the 10th, both sides need to find common ground before then to prepare for the next steps.

Meanwhile, as the possibility of a 'No Deal' scenario arises due to the lack of significant progress in the UK-EU negotiations, the value of the pound sterling has fallen to its lowest level in over two years. On the 4th, the pound's value against the dollar dropped to its lowest since May 2018, and it fell another 0.6% in the Asian market on the same day.

This content was produced with the assistance of AI translation services.