LONDON • The European Union said yesterday that there were just hours left to strike a Brexit trade deal, while Britain called on the bloc to see sense as the two sides race to prevent a turbulent finale to the Brexit crisis at the end of the month.
Both sides are demanding that the other compromise amid a flurry of often-conflicting messages that vary from a deal is possible, to a deal is in serious trouble, to a deal is imminent.
Several hours after EU chief negotiator Michel Barnier told London that there were just hours left to navigate a narrow path towards a deal, Prime Minister Boris Johnson said the British door was open, adding that the EU should see sense and compromise.
"It's the moment of truth," Mr Barnier told the European Parliament in Brussels. "There is a chance of getting an agreement, but the path to such an agreement is very narrow."
Mr Johnson said Britain would keep talking, but he would not compromise on taking back control of its laws and its fishing waters - which he sees as the fundamental point of leaving the EU.
He told reporters: "We hope that our EU friends will see sense and come to the table with something themselves - because that's really where we are."
Britain formally left on Jan 31 after its 2016 referendum, but it has been in a transition period under which rules on trade, travel and business remain unchanged. That period ends on Dec 31.
An accord would ensure that the goods trade which makes up half of annual EU-UK commerce, worth nearly US$1 trillion (S$1.33 trillion) in all, would remain free of tariffs and quotas.
Sterling fell yesterday, reversing some of its recent gains, after Mr Barnier's warning of time running out to reach the trade deal.
The British currency is still on track for its best week since the end of July as market confidence has risen sharply this week on hopes that a last-minute trade deal would be reached.
The pound hit 21/2 year highs, above US$1.36, this week, but yesterday's trading session served as a reminder that the two sides still have divergent ideas on how they want to build their post-Brexit relationship.
Britain says the talks are stuck on two issues - the so-called level playing field and fishing - and has repeatedly said the EU has to budge or there will be no deal.
"We have very little time remaining, just a few hours to work through these negotiations in a useful fashion if we want this agreement to enter into force on Jan 1," Mr Barnier said.
For fisheries, he said the bloc also wanted to be free to retaliate by curbing market access to UK fish products - should Britain squeeze European ships out of its waters.
Mr Johnson portrays Brexit as a chance to build a fully independent British economy that would be much more agile than its competitors, and so does not want to be tied to the EU's orbit and its rules for years to come.
Britain's biggest business lobby group called on the EU to delay introducing new customs checks after Brexit because firms have not had enough preparation time owing to the coronavirus pandemic.
The Confederation of British Industry, which represents 190,000 businesses, is also asking for companies to be given a grace period to comply with new paperwork that will be required at the end of the year whether or not a trade deal is reached.
REUTERS, BLOOMBERG
